Some Italian Mills Raise Prices 10 Percent Due to Higher Energy, Raw Material, Shipping Costs
May 10, 2022
COMO—Exactly 18 Italian upholstery mills blame “out of control” energy, raw material, and shipping costs for a 10 percent price hike in fabrics as of April 1 according to a letter sent to many editors and other customers in the USA and Europe.
The mills large and small signed their names to this letter. (Their names are available on request to eric@sipco.net)
“For months, we have been suffering an exponential increase in costs, compounded by the, recent war events, which are undermining the entire supply chain, from dyeing to finishing processes: all energy consuming processes which require important use of methane gas,” the letter states.
“Furthermore, disproportionate increases (from a minimum of 30% to 60%) are putting the whole industry on its knees, risking severe critical closures, some of which are already in place,” the letter adds.
“The cost of raw materials, yarns, processing, transport, paper, and plastic packages…continue to rise and there is no reassuring signal of recovery,” the letter says.
The letter from 18 mills is careful to note that any increase is up to each company.
One European editor who received the letter increased his cost with all 18 mills by 10 percent. In some cases, the increase started in January, 2022.
Another American Editeur suspects that bigger customers could balk at the increase and negotiate while smaller customers don’t have the same leverage. This could not be verified of course.
“Ultimately, we pay the price for these mills to survive, and the bigger companies rule the roost while we lose our competitive edge,” the smaller customer says.
The mills large and small signed their names to this letter. (Their names are available on request to eric@sipco.net)
“For months, we have been suffering an exponential increase in costs, compounded by the, recent war events, which are undermining the entire supply chain, from dyeing to finishing processes: all energy consuming processes which require important use of methane gas,” the letter states.
“Furthermore, disproportionate increases (from a minimum of 30% to 60%) are putting the whole industry on its knees, risking severe critical closures, some of which are already in place,” the letter adds.
“The cost of raw materials, yarns, processing, transport, paper, and plastic packages…continue to rise and there is no reassuring signal of recovery,” the letter says.
The letter from 18 mills is careful to note that any increase is up to each company.
One European editor who received the letter increased his cost with all 18 mills by 10 percent. In some cases, the increase started in January, 2022.
Another American Editeur suspects that bigger customers could balk at the increase and negotiate while smaller customers don’t have the same leverage. This could not be verified of course.
“Ultimately, we pay the price for these mills to survive, and the bigger companies rule the roost while we lose our competitive edge,” the smaller customer says.
