Record global demand for commodities has led to sharp increases in the cost base of heavy equipment manufacturers. Consequently, Volvo Construction Equipment will raise the price of its machines and components by 5% globally.
Restricted supply and burgeoning demand for steel, especially in China, has led to the cost of iron ore rising by over 70% on the worldwide markets. This has resulted in a sharp increase in the price of steel and consequently in the production costs of manufacturers of construction equipment. To offset some of the impact of these rises, Volvo Construction Equipment will increase the prices of its machines, attachments and parts by 5%.