Ecolab’s Industrial Segment Announces Price Increase

Rhea-AI Summary

Ecolab Inc. (NYSE:ECL) announced price increases across its Industrial segment divisions, effective December 1, 2021, due to rising raw material costs and logistical challenges. Most programs will see an average price hike of 15%. Ecolab emphasizes these adjustments are crucial for maintaining product quality and operational efficiency for customers. The company remains committed to delivering advanced technologies while facing significant inflationary pressures in packaging, labor, and utilities.

Positive

• Implementing price increases helps offset rising raw material and operational costs, aiming to sustain product quality.
• Continued investments in industry-leading products and expertise support customer operational efficiency.

Negative

• Price increases may lead to customer dissatisfaction or loss of business if clients seek lower-cost alternatives.
• Substantial inflationary pressures could impact profit margins if costs continue to escalate beyond projections.

ST. PAUL, Minn.--(BUSINESS WIRE)-- Ecolab Inc., the global leader in water, hygiene and infection prevention solutions and services, is implementing price increases for all Industrial segment divisions, effective Dec. 1, 2021, or as contracts permit, due to the substantial escalation of raw material costs, tightening availability of raw materials and significant increases in packaging, transportation, logistics, labor and utility costs.

Price increases will vary by product category, with pricing for most Industrial segment programs averaging increases of 15%.

“Our focus for customers is consistent – helping them achieve the best operating performance while optimizing the efficiency and total cost of their operations,” said Darrell Brown, Ecolab executive vice president and president, Global Industrial. “Key to this value delivery – which we call our Exponential Return on Investment (eROI) – are the ongoing investments we make in our industry-leading products and in the advanced industry expertise our sales-and-service associates bring to every customer site.

“The dramatic increase in cost pressures and the challenging availability of key raw materials over the past several months have made it necessary to raise prices. Doing so will help offset ongoing cost increases incurred by us and ensure we can continue to provide the leading technologies, solutions and services to help our customers, including programs to reduce water and energy use, waste and their total cost of operation.”

Ecolab Industrial sales representatives will be available for customers to discuss the impact of these increases.

About Ecolab

A trusted partner at nearly three million customer locations, Ecolab (ECL) is the global leader in water, hygiene and infection prevention solutions and services. With annual sales of $12 billion and more than 44,000 associates, Ecolab delivers comprehensive solutions, data-driven insights and personalized service to advance food safety, maintain clean and safe environments, optimize water and energy use, and improve operational efficiencies and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries around the world. www.ecolab.com

Follow us on LinkedIn @Ecolab, Twitter @Ecolab, Instagram @Ecolab_Inc and Facebook @Ecolab.

(ECL-C)

View source version on businesswire.com: https://www.businesswire.com/news/home/20211119005404/en/

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Source: Ecolab Inc.

FAQ

What are the price increases announced by Ecolab (ECL) for the Industrial segment?

Ecolab is implementing average price increases of 15% for most Industrial segment programs effective December 1, 2021.

Why is Ecolab (ECL) raising prices for its products?

The price hikes are due to significant increases in raw material, packaging, transportation, labor, and utility costs.

When will the new prices take effect for Ecolab (ECL) Industrial products?

The new prices will be effective December 1, 2021, or as contracts permit.

How is Ecolab (ECL) ensuring product quality amid rising costs?

Ecolab remains committed to ongoing investments in its products and expertise to optimize customer operations.

What is the average price increase percentage for Ecolab (ECL) products?

The average price increase for most Industrial segment programs is 15%.