Mohawk latest in soft surface price increase disclosure

HomeInside FCNewsMohawk latest in soft surface price increase disclosure

Hicksville, N.Y.—As polypropylene and latex costs continue to rise, Mohawk Industries claims it was forced to jump on the bandwagon and increase product prices. “Other fiber categories such as nylon, polyester and triexta have also followed this trend in the form of higher polymer costs across our product line,” said Frank Peters, president. “As a result of these increased costs, we must raise prices.”

Orders placed on or after May 10 and shipments made on or after May 24 will experience increases to the tune of 5% to 7%. All base grade styles will be increased by a minimum of $.27 per yard.

Kraus Flooring also recently announced it would be raising prices on all soft surface flooring products.  Effective on orders May 10 and shipment May 24, 5% to 7% increased will be implemented.

Recognizing  that price changes impose a strain on everyone, new price lists are currently being drafted. “So far in 2010, we’ve been faced with significant increases in resin, fiber and backing materials,” said Michael Eckhardt, vice president of sales. “We simply cannot continue to absorb these raw material increases and must increase prices for all soft surface flooring products.”

Similarly, as of May 10, orders for Beaulieu of America’s polypropylene products and nylon and polyester carpet will increase by 8% and 5% to 7%, respectively. The increase will be implemented on shipments on May 24.

“Over the past 90 days the raw materials for many of our products have continued to escalate,” explained Jeff Meadows, executive vice president of residential, adding that raw materials cost as much as twice what they did this time last year. With such numbers, Beaulieu will continue to absorb much of the increased cost, passing along as little as possible to its buyers. “Our hope was these increases would subside and possibly begin a downward trend, but that has not happened. [In fact] our suppliers are forecasting additional increases this year.”

Shaw Industries notified its customers on April 14 it will raise prices from 5% to 7%, with a minimum increase of $.27 a square yard, effective with orders May 10, and with all shipments May 24.

In a letter, Shaw’s president Randy Merrit explained the adjustment was due to the rising cost of raw materials. “In the past 15 months we have seen continued increases in raw material costs… Energy costs are on the rise as well. Polypropylene, which is used in every yard of carpet produced in primary and secondary backings, is up about 125% in that period.”

He stressed that Shaw is sensitive to the challenges price increases present, particularly in light of 2009’s economic climate. “During the year, we focused on finding other ways to reduce/absorb costs without damaging our ability to service you,” Merrit said, while reminding dealers of the rescinded increase back in September. “Unfortunately, as costs continue to escalate we cannot continue to further absorb them.”

Customers using Shaw online can find the new price agreements at shawonline.com by April 19. Hard copy agreements will be mailed by May 1.

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