Goodyear engineered product prices escalate, due to rising costs of raw materials

Escalating gas prices are having a ripple effect on food, energy and other consumer goods, as well as raw material, energy and freight costs. Veyance Technologies, the exclusive manufacturer and marketer of Goodyear Engineered Products, is feeling the pinch — just like other aftermarket companies. To offset these rising costs, the company has boosted prices on its industrial and conumber products, effective July 1.

In letters sent this week to its North America and export distributors, Veyance outlined 6.0 to 9.5 percent price increases for its industrial hose, hydraulics, power transmission belts, conveyor belts and rubber track, as well as metal fittings and sprockets.

It also informed transportation aftermarket customers of 5.0 to 7.0 percent increases for its aftermarket belts, hose, tensioners and air springs. The range is dependent on each product's exposure to rising costs.

Bob Herbolich, vice president of sales for North America, says the company has ongoing programs to manage its costs, but the persistent increases in oil- and energy-related raw material, production and transportation prices have been severe. Oil has more than doubled in price from one year ago.

"Six Sigma tools, lean manufacturing methodologies, supply chain initiatives and strategic procurement projects are deeply rooted in our culture," adds Herbolich. "Despite these ongoing efforts, we are unable to absorb the effects of the hyperinflation that is impacting our industry."

He says that this is the second price increase announced by Veyance this year. The company earlier raised prices from 3.0 to 8.0 percent for industrial and consumer channels.