UNITED Kingdom-based customers of Philips Lighting-branded luminaires, lamps and controls face price rises of up to 10 per cent due to Brexit and rising raw material and transport costs.
Signify, which manufactures Philips Lighting products, said the loss of frictionless trading with the European Union had driven up import and transport costs.
Prices for raw materials such as polycarbonate and alloy, key components in luminaires, have risen sharply over the last year and the supply of electronic components is also ‘constrained’.
As a consequence of this, the company has informed its UK-based customers that it is implementing price increases ranging from 2 to 10 per cent depending on the type of lamp, luminaire or control.
In a statement, Signify said: ‘We are committed to serving and supporting our customers in these challenging times and have taken all the necessary steps to ensure our high quality and service continues in 2021’.
In recent years, manufacturers have been complaining that they have absorbed unsustainable price increases in raw materials and transportation and say they would welcome what one described as ‘a return to sanity’ with pricing.
Price increases across the industry will allow them to pass on these extra costs to customers.
Signify is also increasing prices in the US by up to 6 per cent.
Conventional lamps are going up by an average of 5 per cent; luminaires, ballasts and EvoKits by an average of 6 per cent; and LED lamps and electronics by an average of 3 per cent.
In a statement, Signify told US customers: ‘We are committed to serving and supporting our customers in these challenging times and have taken all the necessary steps to ensure our high quality and service continues in 2021’.
Last March, Signify raised price on all LED and lamp electronics due to the soaring cost of its logistics chains due to coronavirus spread.
The company described the coronavirus epidemic as a ‘force majeure event’ which had led to considerable additional costs in its logistics chain.
As a result, the company announced a ‘temporary increase’ of 3 per cent on all LED electronics, including emergency products, and lamp electronics – including magnetic and electronic ballasts – for orders placed from April.
It’s widely expected that price increase announcement from the industry leader will embolden other major brands to follow suit.