Upcoming price increases on machine shop and industrial tools

Whether you’re shopping for groceries, automobiles, clothing, or even a home, you’ve probably noticed that prices are rising. Increases in demand, raw materials, shipping delays, labor shortages, and inflation have all contributed to force prices up in many markets.

The industrial tool industry is no exception. You may have noticed some price increases already, and more are likely in the coming months from popular brands. We’d like to share with you some of the reasons for price changes, as well as some strategies you can use in your shop to help control your costs.

Above all else, know this - All Industrial Tool Supply remains committed to delivering incredible value to you and your shop during this challenging time.

Drivers of price increases

COVID-19 paused production in some industries and shut down others entirely. Delivery of raw materials slowed, or in some circumstances, stopped entirely for long periods of time. Factories had to shut down, and when they were able to re-open, were required to implement safety protocols, which slowed their efficiency. At the same time, employee illness or work-from-home policies reduced available labor and further slowed production.

At the same time as output was slowing, demand was growing - in some cases, skyrocketing - creating a “perfect storm” where demand was increasing exponentially at the exact same time that capacity to meet that demand was shrinking. Some product lines are manufactured in small batches and have long lead times, so it isn’t easy for a brand to simply “make more” in a short period of time - they are already at capacity.

Which costs are going up?

For tool manufacturers, their costs in many areas are rising:

• Record demand for ocean freight containers from Asia to the United States (in some cases, space on ocean freight containers has more than tripled in price)
• Increased raw materials costs - aluminum, steel, glass, cardboard packaging, etc.
• New compliance costs for safety and regulatory changes
• New, higher rates on domestic FedEx and UPS shipping services

Expect price increases this Summer and Fall

Our partner brands and vendors have attempted to hold the line on price increases, and All Industrial in turn has avoided raising prices to our customers as long as possible as well.

Eventually, absorbing increases without passing on some of the costs becomes unsustainable, and many of our vendor partners have finally announced that price increases are coming on their product lines.

When will these price changes take effect?

This varies based on the specific brand and category. Some price changes on individual products may take place immediately as we receive new stock to replenish our inventory. In other circumstances, prices may rise on a specific scheduled date.

Kurt workholding, for example, has announced a price increase scheduled for this Summer across their entire product line. You can lock-in our current low prices on Kurt products, like our top-selling Kurt DX6 vise, by completing checkout now and avoiding future increases.

Actions you can take to control your costs

To help control your costs, you may wish to consider extending your forecasts for inventory and tools. For recurring jobs for which you already have a “shopping list” of required tooling, it makes sense to buy ahead of increases to lock in lower prices at a predictable cost.

Buying in advance of your needs can also help address stock-outs, where the required tool isn’t available, (at any price) due to production delays.

You can also consider alternative or substitute products. On specific products or categories, price increases may be unavoidable. In other circumstances, our team may be able to recommend lower-cost alternatives to help you control your tool expenses. Call or write to us at All Industrial Tool Supply anytime for expert guidance in this area. We can help you plan ahead to secure the products you need at a predictable cost and keep your shop running.

We appreciate your business! Thanks for reading.