Bomag (GB) announce price increases
Rising production costs, emissions legislation and exchange rate pressures force product prices up
BOMAG (GB) are to increase the price of all product lines sold in the UK from the beginning of next month. The company cites production cost increases, notably for steel, power and fuel, an increase in equipment levels on machines, to meet emissions legislation, and currency shifts between the Pound and the Euro as the reasons for the increase.
From 1 November 2013, the price of new Bomag products distributed in the UK will increase by between 2% and 5% for inflation and by between 5% and 10% because of the significant increase in the specification and cost of engines to meet mandatory emission reductions.
The relatively wide variation by product group is accounted for by the wide range in price of Bomag machines, from under £1,000 for a vibratory plate to more than £400,000 for a landfill compactor, and because of the complex mix of engine specifications now employed in Bomag machines to meet legislation.
Machines sold in 2014 will have to meet either Stage 3A, Stage 3B or Stage 4 emission standards, with machines in the 130–560kW bracket having to meet the more stringent Stage 4 requirements, which call for a radical reduction in NOx over Stage 3B.
Commenting on the announcement, Alan Batty, managing director of Bomag (GB) Ltd, said: ‘Announcing price increases is never a popular move but we have to be realistic and our customers have to understand, for the sake of their own businesses, the economics of machine manufacture and distribution.
‘We are not alone, among the major manufacturers, in facing increased manufacturing costs, the ever-increasing demands of legislators and exchange rate pressures, and I hope that our customers will understand the reasons behind this decision.
‘We are extremely fortunate to have a large customer base in the UK that values the traditional Bomag strengths of machine performance, reliability and, above all, long-term value for money that we will strive to continue to deliver.’
Bomag ‘light’ products are distributed through a network of 19 official compaction centres, while ‘heavy’ products, including landfill compactors and all milling and paving products, are sold direct from Bomag (GB).
The previous distribution arrangement for milling and paving products through AP Pavers Ltd ceased, by mutual consent, in September 2013.
