Sighting petrochemical cost increases they could not overcome, Shaw plans to raise prices on residential and commercial carpet, including area rugs, between six and eight percent. Shaw stated: “Over the past four months, all energy related products and services have experienced significant cost increases. Carpet industry raw material prices have risen substantially affecting backing, fiber, latex and distribution. Historically, in these business conditions we have seen relief in raw material costs; that is not the case now, nor are we projected to see softening any time soon.
“We are aware of the business climate all are confronted with today. As a company we have worked to reduce all costs that would not impact our ability to maintain the standards that you have come to expect in our product, quality, and service.”
Mohawk Industries, which includes Horizon, Aladdin, CustomWeave, WundaWeave, Karastan, and others have also announced price increases effective February 1, 2008. In a similar story to Shaw, Mohawk has trimmed as much as possible, but can not off set the raw material price increases.
This price increase is an unfortunate situation occuring during a weak economic climate.
Consumers purchasing carpet should place their orders no later than Friday, February 1, 2008 to beat this increase.
As a major player in the retail/wholesale floor covering business, Carpet Express will use our buying power and industry connections to bring our customers the very best floor covering products at the lowest possible price.
**UPDATE**
In another letter, dated January 23, 2008, Randy Merritt stated:
“Since posting these amounts, raw materials have continued to surge upward and make it necessary that we amend the announced increase amounts… Even with these additional amounts, these increases generally fall within the 6% – 8% range announced initially.
“The initial increase was to be effective with orders February 2, 2008 and shipments February 18, 2008. In light of these additional changes, we will delay implementation of the increase on orders until February 18th. Thus all orders and shipments will increase as of February 18, 2008.”
While this does provide somewhat of a break for those wishing to purchase carpet soon, this price increase delay is effective for Shaw Industries products only. Carpet price increases from other mills will continue as planned.
Shaw Industries Price Increase,
