Firestone Industrial Products Company, LLC (FSIP) has announced price increases between 4 percent and 6 percenton air springs for the light-duty and heavy-duty markets. The price increases will take effect on Oct. 1, 2008.
This price increase is in addition to the increase FSIP announced on May 5. North America has experienced extraordinary cost escalations of raw materials, logistics, transportation and energy. Prices rose in the first quarter of this year and rose again in the second quarter. Raw materials that directly impact FSIP products - steel, plastic, carbon black and natural rubber - were hit with unprecedented second quarter price increases, in some cases almost doubling during the period.
"Firestone Industrial Products is committed to managing external cost increases with programs for productivity enhancements and internal cost reductions. While the programs we have implemented have been effective in lessening the impact of increased external costs to our customers, the price of raw materials, freight, energy and fuel continue to climb at an astonishing pace," said Mike Cerio, President of FSIP.
"Firestone's expansion strategy has strengthened our supply chain with additional manufacturing, assembly and distribution facilities in key locations throughout the world. Our global representation better prepares us to manage escalating costs, but the sheer magnitude of the increases makes it necessary for us to increase our prices," Cerio said.