Rising manufacturing materials costs are forcing CNH (Case IH/New Holland) to attach a 5% surcharge to its agricultural and construction equipment. According to the company’s announcement of the pending action, sharp and sustained increases in its costs for steel, energy, commodities, and transportation are forcing the move.
The company says it will implement an approximate 5% across the board surcharge on the base price of all whole goods orders, including attachments and options of its Case IH Agriculture, New Holland Agriculture, Steyr, Case Construction, and New Holland Construction products.
The move follows price rises already introduced by many manufacturing companies worldwide.
Steel prices soared 40% to 50% this year and, according to some forecasters, they could rise even higher as raw material costs continue to climb and global demand for steel and other commodities shows little signs of abating.
Harold Boyanovsky, CNH Chief Executive Officer, explains, "Having implemented aggressive internal steps to manage these cost increases throughout our worldwide operations, we have now announced specific price increases. These increases will be shown separately on the invoices as a surcharge. Our global team has worked and will continue to work hard to improve the company's financial results, and we have the responsibility to take all necessary actions to protect our bottom line and to benefit our employees, customers, dealers, and other stakeholders."