Schmitz Cargobull, Europe's leading semi-trailer manufacturer, is set to increase its prices by three to five per cent by product group, the company reported March 6.
This measure is a response to high energy and increasing labor costs, as well as rising material prices, according to the notice. The latter, especially for steel and raw materials traded in US dollars, have a direct impact on production costs and affect the entire industry.
“The decision to pass on some of the rising material costs to our customers was not an easy one for us,” Schmitz Cargobull AG CEO Andreas Schmitz said. “The economic environment is difficult, not least due to the uncertainty on the corporate and consumer side, but also due to the challenging political landscape. However, no company can sell its products below production costs in the medium term.
“Therefore, we see no other option than to increase prices now in order to continue to offer our customers the high quality and reliability of our products that they have come to expect, and which allows them to operate economically in the long term. Should material prices fall contrary to expectations, this will be reflected in the price calculation and we will pass the cost advantage on to our customers.”
Despite the economic pressure caused by increased costs, Schmitz Cargobull will continue to invest in measures to increase productivity and in research and development, in order to offer its customers reliable and cost-effective transport solutions that help them to operate profitably, according to the company.
“We want to do the right thing for our customers and not compromise on product quality,” Schmitz said. “The aim is to reduce the total cost of ownership. For example, we continue to rely on galvanized vehicles that retain their value and offer the best insulation for temperature-controlled transport in our refrigerated boxes. Despite the higher purchase price, this pays off for the customer.”