H.B. Fuller took a transparent approach to a price hike by announcing it will implement an 11% surcharge on shipments of its products globally. The surcharge goes into effect on Wednesday.
H.B Fuller (NYSE: FUL), St. Paul, MN, said the surcharge was driven by the “continued short supply and significant cost escalation of certain chemical feedstocks and plastic and metal packaging that have resulted in unprecedented costs to serve customers.” The increases were followed by inflationary costs and short supply across logistics, freight, packaging, labor, according to the company. H.B. Fuller is implementing the surcharge to offset those increases.
While most distributors have bounced back from the onset of the pandemic last year, the pent-up demand has been partially hamstrung by supply chain constraints and a labor shortage, among the other issues cited by H.B. Fuller.