Steel Tariffs Causing Price Increases – NWA Has Your Back!
When you’re purchasing or renting waste management equipment, the cost of the raw material has a significant effect on the prices you’ll pay and with steel prices increasing this can have a noticeable impact on your bottom line.
U.S. Tariff on Steel Imports
In March 2018, the U.S. government set a 25% tariff on steel imports and a 10% duty on aluminum imports. The move was intended to stimulate the U.S. steel producing sector, as the U.S. was previously the world’s second largest importer of iron and steel. Initially Canada, the EU and Mexico were exempted from the tariffs, but they were included in the list of countries to be affected at the beginning of June 2018.
Impact on The Manufacturing Industry
Unfortunately, although the steel industry may have been buoyed by the move, the manufacturing industries that use steel, were harmed by the increased steel prices.
Because the U.S. is unable to make steel as cheaply as its foreign rivals do, American manufacturers such as those that make waste management equipment face higher costs. The major nationwide baler and compactor companies have all been affected.
The implementation of these tariffs has led to increases in prices for both imported and domestic steel, reaching an all-time high in September 2018. This has increased costs for all U.S. companies that use steel or aluminum as a raw material, including all manufacturers of waste containers, balers, compactors, bins and skips.
One manufacturer has warned that tariffs have pushed up costs for all of their products, regardless of where they source their steel from, and that retaliation from the EU is having a significant impact on sales, suppliers and customers.
Manufacturers Pass Costs onto Customers
Customers are often the ultimate losers from trade wars. As is always the case when raw material prices rise for manufacturers, they don’t keep the financial burden to themselves, but instead pass down those price rises to their customers.
This means that businesses that are purchasing or leasing new waste management equipment could see prices rise as much as 12 percent.
How NWA Protects Your Business
Unlike some of the waste majors, National Waste Associates is not affiliated with any one waste equipment manufacturer. Instead, we source the most cost-effective solution to manage your specific waste and recycling operations.
If your business has a requirement for new equipment, NWA will assess your needs, recommend the right gear and specifications to minimize your entire waste management costs, and will then find the supplier that has the best quality equipment for the best price in your area.
Although we can’t alter the effect of raw material prices, we will actively review your waste volumes and work to increase the efficiency of your operations to generate your business significant financial savings.
Contact NWA today to learn how.