Question-and-Answer Session
Operator
Yes Sir. (Operator Instruction). Your first question comes from the line of Scott Stember with Sidoti & Company. Go ahead.
Scott Stember
Good Morning.
Frederic Zinn
Hey Scott. How are you?
Scott Stember
Pretty good. Could you talk about new products in the quarter? Any products such as ramp doors and axles and may be talk about the run rate this year on an annualized basis versus last year in the fourth quarter.
Leigh Abrams
I will start with Jason on that one and then I will stay with
Jason D Lippert
Yes Scott, on axles we’re, our run rates higher than last year, I can't tell you exactly what it is, but it's higher and we are really starting to break into a couple other specialty trailer markets outside of the RV industry, so the RV's industry is actually the smallest market for the axles that we build, so these are the couple of markets that we are looking at like Cargo trailer and (inaudible) trailer and other specialty trailers are about three time the size of the RV markets. So there is a huge potential therefore and we're just getting ramped up this year for those products. On the ramp door, we did not start that project till summer last year and it's a $10-12 million market and we are reading up a lot of that right now. Our run rate there is about 70-75% of that market and we are still gaining market. So we are still doing a lot of prototyping there and stuff like that, but our market share in the ramp doors within the first year of production has been a significant gain for us.
Scott Stember
Thank you Jason.
Frederic Zinn
David you want to add anything on your side.
David L Webster
No, I don't think I want to add anything right now.
Frederic Zinn
Okay. Kinro, I can't say has picked up market share in last several months of the existing products that they have.
Scott Stember
Okay. And as far as raw material cost Fred, could you may be talk about the timing of when these purchases go into inventory and when they will actually negatively impact margins.
Frederic Zinn
Yes, hopefully they won't negatively impact margins too badly. But there were some significant increases. I think we start to get delivery for those higher costs products where the market price of those products went up some in January, February and March. So we'll see it start appearing in our inventory into the first quarter and start impacting our costs in the second quarter. But we've tried to do as much as we could in terms of buying ahead and sourcing from overseas and looking at alternative sources to minimize the impact.
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