Due to an unprecedented rise in the cost of raw materials, Erie Powder / EPC is having to increase pricing on all powder coatings, pricing to be implemented before May 1st. Over the last 6 to 8 months, pricing on many raw materials has increased to levels not seen before. Erie / EPC have aggressively sought to contain rising costs through efficiency, but the rapid rise of raw material costs have completely overwhelmed any savings through efficiency.
Brian Coutts, company president noted that the pricing increase was a difficult news item to bring to company customers. “Most of our customers haven’t had a pricing increase in the nearly 20 years we have dealt with them, and in fact, most customers have seen substantial pricing decreases over that time. Combined with the poor performance of the economy, it’s very difficult to convince our customers that we are actually seeing these very significant pricing increases on our raw materials, and that many of these raw materials are actually in a short supply position”

Mr Coutts noted that there does not appear to be any relief on the near horizon. “We have been told to expect more tightening of the raw material supply, which will probably lead to further increases in pricing on the raw materials. But we would also note that the pricing increase we are putting in right now to our customers simply reverses the cuts we made to our prices in 2009, and in many cases our new pricing, even after the increase, is still lower than it was in 2008 / 2009”

Pricing on Erie / EPC products will increase on or before May 1st, subject to prior contract.