03 Dec Steel Price Increases and Tariffs reasons for a Gorbel Metal Surcharge in 2019
Due to the volatility of the steel and aluminium markets, and tariffs placed on manufactured steel and aluminium products, our suppliers are under great pressure to increase the pricing of their products. Acculift works closely with our product suppliers and together we do our best to minimize the impact of rising prices as best we can through creative ordering, combined shipping, bulk purchasing and other efforts.
Since late last year, costs for steel and aluminium used in the manufacturing of Gorbel products have risen at rates the industry has not seen in years. Gorbel expected the costs for these materials to stabilize at levels much lower than those that we experienced in the summer but this has not occurred, and costs continue to be impacted by ongoing tariff activity by the U.S..
Due to tariffs and the overall volatility in the materials market, Gorbel is adding a surcharge of 5% on portions of their product offering, effective January 2, 2019.
All products and parts in the following categories will be impacted:
– Work Station Cranes
– Jibs and Gantries
– Tether Track™ and Ranger
On January 2, we will roll the amount of the surcharge into our quoted prices. Orders must be placed by December 31, 2018, to receive prices that do not include a surcharge.
Because of the volatility in the steel and aluminium markets, we can only hold prices on orders for the standard quoted lead-time. For example, if we quote a 6 to 8-week lead-time on a project that turns into an order, the price would be honoured if the order was scheduled to ship in 6 to 8 weeks. If a longer lead-time is requested or the order is placed on “hold,” that order will be subject to new pricing with the surcharge included.
These raw material cost increases are affecting a wide range of industries, and we will continue to monitor the overall impact in the market. Should the volatility lessen and costs stabilize at significantly lower levels than we have seen recently, Gorbel plans to re-evaluate the surcharge.
The Canadian government is trying to mitigate some of these costs through the Accelerated Investment Incentive (AccII) program.