Kimberly-Clark Announces Price Adjustments to Meet Inflation Pressures
ROSWELL, Ga. -- Kimberly-Clark Health Care announces that it has made price increases because of unprecedented rising costs for raw materials from suppliers around the world. Kimberly-Clark Health Care is adjusting prices across most product categories.
The primary economic factors driving the announced price adjustments include the following:
• Oil prices – Most of the company’s products are primarily composed of materials that are derived from oil. Such materials include polymer, plastics and film. Although Kimberly-Clark Health Care planned for price fluctuations, oil prices have skyrocketed beyond market expectations. Shipping costs of materials have also more than doubled in the past three years because of the increased price of oil.
• Inflation rates – Inflation rates have risen in nearly all countries during the first six months of this year. India and China are experiencing nearly double digit inflation while the United States, Europe and Asia are realizing higher than anticipated inflation rates. Local economy inflation drives labor rates and production costs.
• Weak U.S. dollar – Because the U.S. dollar is weak against worldwide currencies, the cost of imported goods has increased including oil.
“Kimberly-Clark Health Care has done everything possible to avoid increasing prices,” said John Amat, vice president of healthcare sales and marketing. “We’ve taken a considerable number of steps to absorb increases in costs, but now we’re out of options. We are compelled by the circumstances we face to take this action of last resort.”
Source: Kimberly-Clark Health Care
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