Producers Regain Price Increases that were Rolled Back Earlier In the Year
Construction equipment manufacturers have recaptured most of last spring's price increase, which initially failed to hold. Producers were not able to maintain last March's average 1.3% price increase as market conditions forced them to roll back prices 1.1% in April, according to the Bureau of Labor Statistics' producer price index. Equipment makers attempted another 1.3% price hike in June and most of it appears to be sticking this time, with producers being forced to give back just 0.1% in July. Click here to view chart
The BLS price index for construction equipment now is 1.7% above July 2001's level. This compares to a 0.1% year-to-year increase recorded at the beginning of the year. However, virtually all this price movement was generated from a single category--power cranes and excavators. In July, the BLS index for this group of equipment was up 9% for the year. Annual price escalation for other types of equipment has been more modest. Prices for both wheel and crawler tractors are up between 1.5 and 1.9% for the year, while prices for highway paving equipment show no gain from 2001's level. Prices for tractor shovel loaders are down 0.3% for the year.