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Breaking Flooring News

Johnsonite Announces Price Increase

February 23, 2005

Johnsonite has become the latest major supplier to announce a price increase due to a shortage of raw materials needed in the manufacture of resilient flooring. The company said that effective March 7 it will raise prices by 4-5%. It also cautioned that additional increases may be necessary.

The company's senior vice president, Carmen Pastore, said raw material shortages have gone beyond petroleum and natural gas to include other resources used in the production of Johnsonite products. He said the worldwide imbalance between supply and demand for polymers has led to increased costs well beyond normal industry trends.

"Despite the significant increase in demand, raw material manufacturers are not rushing to materially increase their manufacturing capacity," stated Pastore. "Therefore we remain concerned that further increases may be required."

To offset additional material costs that are being absorbed by Johnsonite, Pastore said the company is continuing to enhance its operating and manufacturing processes for improved efficiency.

The price increases follows a series of similar announcements from other resilient flooring suppliers who also cited the raw material shortage as the primary reason for the move.

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