The rising costs of raw materials, such as copper, rubber and steel could elevate the costs of aerial work platforms and other projects in the coming year, Tim Ford, president of the aerial division of Terex Corp. said at the Rental Show this week. While the company had much improved results in 2010 and expects a significant sales increase in 2011, the rising costs of materials could cause equipment prices to rise in the foreseeable future.
“As volume grows, we’re going to have to deal with issues related to the costs of these materials,” Ford told RER. “It’s going to be a growing concern for the industry. The cost of manufacturing, the ability to get materials and at reasonable prices is something we’re going to have to deal with sooner rather than later.”
Ford said that Genie and other manufacturers would try to avoid raising equipment prices, but that it may be hard to avoid passing along those rising costs.
Unlike some other manufacturers that expressed concern that turmoil in the Middle East could affect the European economy and cause oil costs to rise significantly, Ford said that oil prices were a secondary concern in comparison to the cost of materials.
Ford said the Terex aerial division enjoyed solid sales at the ARA show and that the market for aerial equipment is improving, with sales solid to large and small rental companies alike.
Genie, the Terex aerial division, is based in Redmond, Wash.