Honeywell Surcharge Update
Message From Honeywell:
As world markets continue to react to an improving economic environment, the demand for direct materials and logistics and resulting cost inflation continue to escalate. We have absorbed most of the inflationary pressure as our purchasing and operations teams work to diligently minimize impact; however, we must compensate for the elevated costs that have been driven into our business so that we can continue servicing our customers to the best of our ability.
While we have been hoping that the inflation we have been experiencing would be transitory, we are seeing cost increases accelerate rather than abate. For example, we saw costs go from $2.50 to $70 in one particular component. There are 80 to 100 components on our controller boards, and on average, we are seeing price volatility for 15 of those components at any given time right now.
As a result, effective November 15, 2021, all existing and new purchase orders will see an additional line item for a 7% surcharge for all Honeywell products. This surcharge will appear on order acknowledgments and invoices as “Inflation Surcharge.” The Inflation Surcharge is being implemented as a reaction to market conditions. If inflationary pressures were to decrease, we would revisit the need for the charge.
This surcharge will be in addition to any standard freight charges.
This surcharge will replace the 8% controller surcharge previously implemented. The controller surcharge will be removed from any open orders and will not be applied to any future orders.
Honeywell software and training are excluded from the 7% surcharge.
We understand this not only impacts your business, but it impacts your customer's business as well, so we do not take this decision lightly. We truly thank you for your business and continued loyalty.
Jackson Control Pricing Update:
Effective immediately, all new quotes will reflect the 7% surcharge in the list price. We are not adding a separate "Surcharge" line.
As a courtesy to our customers, pricing on existing open orders with Jackson Control will not change. Jackson Control will hold the 8% surcharge on existing controller orders but will absorb the 7% increase on all other Honeywell items.