AAON Announces Price Increase

Rhea-AI Summary

AAON announced a 4% price increase on all HVAC equipment effective June 1, 2021, due to rising raw material costs. Prices for materials like stainless steel, galvanized steel, and copper have surged by 30% to 50% compared to the previous year. This increase is intended to offset a 3% to 4% rise in component costs linked to these materials. Gary Fields, President and CEO, emphasized the necessity of this pricing adjustment to combat inflationary pressures on production.

Positive

• Effective price increase of 4% on HVAC equipment will help maintain margins.
• Proactive measure to address rising raw material costs.

Negative

• Increased raw material costs (30% to 50%) may signal ongoing inflationary concerns.

TULSA, Okla., March 09, 2021 (GLOBE NEWSWIRE) -- AAON, Inc. (NASDAQ: AAON) today announced a price increase of 4% on all AAON HVAC equipment. This price increase is a direct result of increased raw material and component costs, including stainless steel, galvanized steel and copper, which are up 30 to 50% compared to last year. The price increase is effective June 1^st, 2021.

“As raw material prices have continued to rise considerably, this is also driving a 3 to 4% increase in our component costs. We intend to stay ahead of these inflationary pressures and must increase the price of AAON equipment,” said Gary Fields, AAON President and CEO.

About AAON
AAON is engaged in the engineering, manufacturing, marketing and sale of air conditioning and heating equipment consisting of standard, semi-custom and custom rooftop units, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils and controls. Since the founding of AAON in 1988, AAON has maintained a commitment to design, develop, manufacture and deliver heating and cooling products to perform beyond all expectations and demonstrate the value of AAON to our customers. For more information, please visit www.AAON.com.

Contact Information
Eric Taylor
Phone: 918-583-2266
Email: Marketing@AAON.com

 

FAQ

What is the reason for AAON's price increase?

AAON announced a 4% price increase on HVAC equipment due to increased raw material and component costs.

When will the new prices for AAON HVAC equipment take effect?

The new prices will take effect on June 1, 2021.

What materials have seen significant price increases affecting AAON?

Stainless steel, galvanized steel, and copper have increased by 30% to 50%.

How much have component costs risen for AAON?

Component costs have risen by 3% to 4% due to raw material price increases.

Who is the President and CEO of AAON?

Gary Fields is the President and CEO of AAON.