Reso 2021-3252 - Laserfiche WebLink

Home Browse Search

rrJ ' pmc September 29, 2021] City._of Sunny lsles,l Thank you for being a valued Altec customer. We greatly appreciate our relationship and look forward to serving you for years to come. Costs in our industry continue to be volatile, increasing, and in cases like steel, at unprecedented levels. These increases have been widespread, affecting not only commodities like steel, aluminum, resins, and petroleum-based products, but also manufactured components from industrial suppliers. Steel futures indicate that prices will remain at elevated levels for the foreseeable future. The Producer Price Indexes (PPIs) below illustrate the magnitude of the impact to our business. Producer Price Index by Commodity PPI Series ID Average 2020 to Average YTD 2021 Change 1 to Aug Apr 21 C 2021 C haangenge Metals and metal products WPU10 25.9% 13.5% Cold Rolled Steel Sheet and Strip WPU101707 115.2% 32.0% Hot Rolled Steel Sheet and Strip, Including Tin Mill Products WPU10170301 112.3% 34.5% Steel Mill Products WPU1017 65.9% 27.8% Aluminum Sheet and Strip WPU10250105 21.3% 13.5% Fuels and related products and power WPU05 31.3% 13.4% We continue to experience price increases from key suppliers as shown in examples below: Altec Material Components Increase 309; 259; 20% 15% oti ip 4y C b� 4 P ��JG2 � uyoci, F� We will continue to focus on lean manufacturing and implement cost-saving measures where possible. However, we are unable to absorb the entirety of the increased material costs we are experiencing in today's environment. To offset a portion of these unanticipated costs, Altec is continuing a 5% surcharge into 2022. We will continue to monitor material prices to evaluate the need for this surcharge. Thank you for your understanding. Jenny Carlson