MUSCATINE, Iowa — Bridgestone Bandag Tire Solutions (BBTS) have announced price increases in the US of up to 5% for tread rubber products to its Bridgestone Bandag franchised dealers. No increase is being taken for tread rubber products in Canada. The new pricing went into effective May 5.
“Unprecedented energy prices continue to impact our costs, particularly for raw materials and transportation,” said Saul Solomon, president of BBTS. “We’ll continue to focus on enhancing our operational efficiencies and increase productivity so that we may only pass on increased costs as absolutely necessary. Our Bandag dealer network will continue to offer quality retread tires, as well as preventive maintenance services, to help fleet customers control their operating costs at a time when they need it most.”
BBTS executives hinted at price increases during the company’s recent BizCon conference in New York, stressing several times that tire manufacturers are being challenged by combination of a slower economic market and escalating raw materials costs.
“You now have a headache that even high doses of morphine cannot cure,” said Singh Ahluwalia, president, sales and marketing during a speech at the conference. “Tough choices, tough decisions but I can say this with certainty: Prices of raw materials have drastically escalated over the past 12 months. Our costs are up and we have no choice but to pass these costs on as we have no way to absorb these rapidly escalating raw material costs.”
Kurt Danielson, vice-president, North American Marketing, reinforced those comments in his own speech, saying the “cost of raw materials used to make our products are increasing at record pace with no relief in sight…and you know what that means.”
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