2021 MID-YEAR PRICING UPDATE
To our Customers and Suppliers,
These last few weeks have been exciting as the economy moves back toward normalcy. We are hoping that the troubles from the last 15 months or so are on the way out. Thank you for being a strong partner with Sidco. We are looking forward to continuing to support you and being your top filter supplier.
While the economy seems to be cruising back online, we continue to see a continued restriction on the availability of labor and materials. As such, we have had to be diligent in reviewing our supply chain and cost structure. Since January 1st, we have seen unheard-of inflation. The worst are exemplified in the following areas:
- Steel prices have risen 92.9%
- Media increases ranging from 11% (plastics) to 43% (paper)
- Potting compounds are up 12.5%
- Corrugated is up 141%
- Cost of labor is up 24.8%
These are the most impacted areas, but we are seeing increases in every commodity. Fortunately, we had purchased heavy quantities of all raw materials in the 4th quarter last year. This has helped keep our prices lower in the first half and has kept our lead times to our normal 5 business days. As we have burned through that inventory, we are faced more and more with these cost increases.
To address this heavy inflationary load, Sidco will be implementing an average 5% net price increase that will be in effect on all orders received after August 1st. Filters built with a heavy level of steel may be higher. To help offset this increase, we highly recommend working with us to establish blanket supply agreements for as long a period as possible. My recommendation is to place a blanket order for 12 months to be used in an 18-24 month period. This will ensure your supply while allowing the delivery schedule to expand if your demand slows.
Please reach out if you need an estimate of pricing on your items. If you would like to further discuss a blanket order or quantity agreement, please give us a call or send an email to firstname.lastname@example.org.
President, Sidco Filter Company
Click here to email our sales team or call us at 585-440-3219.
For sales tips and resources, check out our blogs:
3 Ways to Reduce Impacts of Price Increases
Increase Your Filter Sales in 2021
How to Avoid Price Volatility and Increases