31.03.2004

JLG announces price increase

JLG has announced a "price surcharge" of 2.755 per cent on all JLG products, options and accessories. Effective immediately the increase applies on a worldwide basis.

The announcement came in the letter to its dealers and major customers, in which JLG also highlighted the current steel shortage in the US and the fact that prices had risen by over 30 per cent, with predictions that it may soon reach US$450 a ton, an increase from around $250.

The company will show the increase as a separate line on its invoices, clearly stating it as a surcharge and not as a back-door price increase.

The company claims to have absorbed the increase up until February 2004 and said that it will only be passing on the increases in steel that comes through after that date. The surcharge will be changed from time-to-time to reflect the change in the price of steel throughout the year.

The cause of the steel shortage, which was highlighted by Vertikal.Net in mid February, has been attributed on the huge increase in demand from China, which, as yet, has shown no sign of abating.

In case customers have any idea to track the steel price and compare it to the surcharge, JLG has pointed out that as it uses a wide variety of steel types and sources, it will be using its own compound indicator rather than standard steel price indicies.

Others follow suit.
Following the JLG price increase announcement, a number of other companys announced increases in the same range. They included, Ingersoll Rand-Bobcat, Volvo and Case. Expect more increases to come.