27.09.2011

JLG issues guidance on 2012 pricing

While many aerial lift manufacturers have announced that they may or will raise prices for 2012, JLG has given its customers a clear indication of the increases it expects to have to implement on all shipments from January 1st 2012.

The company says that it is closely monitoring its supplier’s planned price increases for 2012 and will continue to do so over the next 30 days. Once it has is satisfied it has all of that information it will confirm its price increases, which it expects to be in the region of 4.5 to six percent.

The information was contained within a letter to customers from JLG president Wilson Jones, in which he acknowledges that the market has picked up substantially and says that the company has managed to absorb a proportion of the component and raw material increases this year by streamlining its production facilities and improving efficiencies thanks in part to higher and more consistent order intake.

With a strong order book on hand the announcement effectively means that most new orders for JLG products are likely to incorporate the higher 2012 pricing.

Vertikal Comment

While JLG is providing its customers with advance guidance on 2012 pricing, expect all manufacturers to increase prices in the new year. By how much will of course depend on how order books look as we approach the end of December, having passed through a quarter of great economic uncertainty which is bound to supress some buyers from confirming new orders.

With component suppliers reluctant or even unwilling to ramp up production, there is a squeeze on availability that inevitably leads to higher prices. However with the Chinese construction equipment industry showing early signs of ‘wobbling’ there may be some let up on steel and other commodity led raw materials early in the new year that could help offset other cost increases.

Fact is it is all very uncertain and in this climate no one really knows what will happen, if you are looking at some rental fleet replacements though this might be a good time to try and lock in on 2011 prices. If you are lucky – or is it skilled – with your timing you might even benefit from obtaining 2011 prices for your new equipment and higher 2012 prices for your used equipment – as it continues to rise driven by shortages and the higher cost of new machines.