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HomeMy WebLinkAboutEDB Supply Chain Disruptions & Price Increases EXECUTIVE SUMMARY AGENDA ITEM: Supply Chain Disruptions & Price Increases Date: March 31, 2022 BACKGROUND: Throughout the pandemic, many suppliers experienced supply chain disruptions and increased prices. Clay County Utility Authority (CCUA)routinely adjusted ordering, time, etc. as part of efforts to remain in front of issues obtaining equipment and materials during these unprecedented times. Recent fuel cost increases and inflation are having a direct impact on CCUA operational budgets. The current conflict in Ukraine is now exacerbating the situation with price volatility on raw materials and supply chain disruptions on the finished goods. ca cSuppliers notified CCUA that certain products may not be available for significant periods of time. For cr g example, a regular order of dual check valves for potable water meters has never exceeded two weeks for o delivery. The vendor recently indicated this routine piece of equipment may take 15-18 weeks to deliver. r E CCUA uses many pieces of equipment and products, including the one example noted, to reliably serve zcustomers and protect public health and safety. One distributer sent the attached manufacturer letters, which include details illustrating impacts to standard materials used daily by utilities. Companies are approaching the situation with either surcharges or price increases, stating they will monitor the conditions daily.As indicated in this correspondence,there is uncertainty in the marketplace and all parties are navigating new territory. With this news, we raise this awareness with the Board of Supervisors in case there are additional issues warranting emergency purchases and other means to secure adequate supplies and maintain operations. In addition, if CCUA cannot obtain all materials necessary to provide a safe and reliable water supply, staff could be forced to delay establishment of services to new customers. Staff intends to communicate these supply chain issues with stakeholders to avoid un-necessary issues with future customers. As always, CCUA's top priority is to protect public health and safety. ATTACHMENTS: Supply Chain Price Increase Letters - March 2022 Emergency Purchase for Dual Check Valves //TLS (Author) //AB (Review) //JDJ(Final) DocuSign Envelope ID:7F6FF6CF-CA2C-4B62-A756-36FC45E3862A To whom it may concern, This letter is to help explain the current impacts being felt in the Waterworks industry. The recent conflict in Ukraine has created immediate cost volatility to certain raw materials.These consequences from the conflict are impacting many common waterworks products with immediate price increases and surcharges implemented by manufacturers of the finished goods. In addition to these raw material cost increases, there continues to be inflationary cost pressures in labor, energy, global freight and transportation across many of the manufacturing sectors. The supply chain disruptions in our industry have increased. Due to these recent disruptions, and the significance of inflationary cost pressures in the current and future state, it will make pricing predictability fluctuate beyond our control. Therefore, it will be necessary for these costs to be passed along as we receive them. The attached manufacturer letters outline in more specificity the detail to which it is impacting each product. to We understand this is a challenging time. Local Ferguson sales representatives and leadership will continue to work diligently to bring you information in this rapidly changing environment. We appreciate you and your business very much and thank you for your continued support. Sincerely, �DocuSigned by: aitiA/Zie) E0C099B104884D3... Kyle Grant District Manager Waterworks I Southeast United States 0 FERGUSON WATERWORKS 6455 Buford Highway Norcross GA 30071 A DUCTILE IRON PIPE THE RIGHT WAY March 21, 2022 To: AMERICAN Ductile Iron Pipe Customers and Distributors Subject: New DIP Pricing Structure: Effective April 1, 2022 For several weeks now, the world has both observed and been affected by the conflict between Russia and Ukraine. The global economy has struggled to adjust to the impacts of the conflict, and the already stretched global supply chain has now been further limited due to constrictions on supply from those countries. As a result of this supply shortage, many of the raw materials necessary for the production of ductile iron pipe have already experienced critically lengthened lead times and extreme cost volatility. Additionally, costs to transport our products to market have been impacted by rising fuel prices. The unusual nature of this current economy has made it very difficult to predict how costs will fluctuate, so it has become necessary for us to implement a new pricing structure for our ductile iron to pipe and other products. Following are the necessary actions we must take in response to this rapid cost volatility: Beginning April 1, 2022 • American will maintain a base price for our products. The current base price became effective on February 15, 2022 (see letter dated February 1, 2022). • Additional cost volatility will be added to the base price and will be included in the quoted unit prices for our materials. Scrap volatility will be tracked for increases above and beyond the base scrap price in effect on February 15, 2022. This index can be monitored via Fastmarkets (www.fastmarkets.com). Quoted prices will be either base price or base price plus a cost volatility adder. • Quotes will be valid for 3o days • Materials must be ordered within the 3o-day quote validity period and those orders must ship within 3o days of order entry date. • Materials which do not ship within the 3o-day period will be subject to the applicable cost volatility adders at time of shipment. We recommend re-checking pricing within 3o days of shipment to confirm any cost adjustments. Additionally, we recommend tracking scrap cost changes via Fastmarkets. • If further cost impacts become apparent, AMERICAN may need to increase our base prices. Should a base price increase become necessary, AMERICAN will issue a base price increase announcement. Any further cost volatility adders will still be applicable at that time. AMERICAN Ductile Iron Pipe—AMERICAN Flow Control—AMERICAN SpiralWeld Pipe—AMERICAN Steel Pipe—AMERICAN Castings—International Sales P 0 Box 2727—Birmingham,Alabama 35202-2727—amencan-usa corn Current Open Orders and Outstanding Quotations • All open orders which have been placed prior to February 15, 2022 are now subject to new quote terms and must be repriced to meet the current base price plus applicable cost volatility adders. • All orders must now include a volatility adder prior to shipment. • All outstanding quotations must be repriced to current base pricing and must include the applicable cost volatility adder and revised terms. While there is no perfect solution for these volatile market conditions, this new pricing structure is intended to help our DIP customers and partners to plan for and adapt to current and future cost impacts. Our ACIPCO staff will assist you through this transitional time. As always, we at AMERICAN appreciate your support, and we thank you for your business. Sincerely, to W.D. "Skip" Benton Christopher S. Jarrett VP, Sales Director, Sales AMERICAN Ductile Iron Pipe—AMERICAN Flow Control—AMERICAN SpiralWeld Pipe—AMERICAN Steel Pipe—AMERICAN Castings—International Sales P 0 Box 2727—Birmingham,Alabama 35202-2727—amencan-usa corn us. PIPE A Forterra Company March 14, 2022 To: Valued Distribution Partners and Customers Re: Scrap Surcharge As you are aware,the Russia-Ukraine conflict has resulted in additional disruptions to an already stretched supply chain. This conflict has impacted multiple inputs to our manufacturing process,the biggest of which is our scrap metal costs. Given the current situation, demand for steel and iron to be supplied by other countries is quickly growing. Those manufacturers are looking to buy more scrap, the same scrap we buy for daily operations. As a result, scrap costs are rising very quickly. The restrictions on pig iron coming from Russia and Ukraine further exacerbates the demand for scrap. Effective April 1, 2022, all product shipping from our facilities will incur a scrap surcharge to cover these increased scrap costs. While we hope this is a short-lived market condition, we have to prepare for the likely reality that this persists until the conflict has come to resolution, global sanctions on that region of the world are lifted, or some other market mechanism helps compensate for the increase in demand. That surcharge will be based on the national increase in shredded scrap pricing as tracked by Fastmarkets (https:/www.fastmarkets.com).The prior month average is released on the first business day of the month (i.e., the increase for March will be confirmed on April 1'). It will be communicated on the second of the month and made effective the fifth day of the month. The shredded scrap index is to highly correlated to the busheling index which was up$175/ton between February and March. Because of the even higher demand for busheling,we expect the shredded index to be up, but not more than busheling. Based on what we know as of this time, a good planning number should be between $125- 175/ton. All surcharges will be noted as a separate line item on your invoice. As you know, our typical approach is to absorb increases and movements in raw materials pricing both small and large; however, the movement over the last two weeks is historically unprecedented. We believe a surcharge is the most effective mechanism for an adjustment because we intend for this to be temporary. When scrap pricing returns to February 2022 levels, we will pull back the surcharge. Should the conflict last longer and scrap prices remain higher for an extended period of time,we may consider converting the surcharge to a more permanent price increase, but it would be premature to determine that now. Also note, we will continue to strictly enforce our terms and conditions. If you wish to cancel your order for Made to Stock (MTS) material in lieu of paying a surcharge,you may do so with no cancellation fees. Cancellation fees still apply to Made to Order(MTO) materials. We regret having to take these actions; however,the metals markets have been greatly impacted by the situation abroad. We appreciate your support and patience while we all navigate these uncertain times. Best Regards,l_ 444/74.-- \ Vik Bhatia Howard Smith President Sr.Vice President of Marketing&Sales 214-693-1578 919-757-5411 2 Chase Corporate Drive, Suite 200 I Birmingham, AL 35244 1866.347.7473 • 2266 South 6th Street Coshocton, OH 43812 McWANE IRON STRONG o 800-800-6013 DUCTILE mcwaneductile.com March 11th, 2022 To: McWane Ductile Customers Re: Scrap Surcharge The Russian-Ukraine conflict has caused a severe shortage of pig iron in the international market (as both countries are two of the world's top producers). While McWane Ductile does not use pig iron, consumers of pig iron have downcycled to raw materials such as busheling and auto shred, resulting in an immediate and intense demand for all grades of US scrap, which in turn has driven up scrap prices by $150/ton and more this month alone. We expect this cost escalation to continue until the conflict resolves. In light of the detrimental impacts from these unexpected events, it is necessary to implement a $150/ton scrap surcharge to all shipments effective 03/14/2022, which will be added as a separate line item on your invoice. Additional points: to • This surcharge is temporary, and we will rescind it when scrap prices return to February 2022 levels. • We will adjust the surcharge monthly, based on changes in the Busheling Index published monthly in Fastmarkets.com. • The surcharge we're announcing today will apply to all shipments from 3/14/2022 until 4/10/2022. Fastmarkets publishes the settled scrap price on the 10th of each month, therefore any April surcharge will apply to all shipments from 4/11/2022 to 5/10/2022. • Because of unprecedented demand for our products along with supply chain constraints, we cannot guarantee lead times, delivery schedules, or availability. • You may choose to not pay the surcharge and delay your scheduled shipments until such time as scrap prices have returned to lower levels. Once again, however, lead times, delivery schedule and availability are not guaranteed. Thank you in advance for your support. Please contact your McWane Ductile Sales Representative with any questions. Best regards, Mike Dodge Vice President of Sales & Marketing A • sal 111rrilsk 4g Amp. %WA IF— Pros` ■ Me •461 THE RIGHT WAY March 21, 2022 To: Customers, Distributors and Stakeholders OF AMERICAN Ductile Iron Pipe,American SpiralWeld Pipe&American Flow Control Subject: Impacts of Global Supply Constrictions on Product Availability and Cost For several weeks now, the world has both observed and been affected by the conflict between Russia and Ukraine. The global economy has struggled to adjust to the impacts of the conflict, and the already stretched global supply chain has now been further limited due to constrictions on supply from those countries. As a result of this supply shortage, many of the raw materials necessary for the production of our products have already experienced critically lengthened lead times and extreme cost volatility. Additionally, costs to transport our products to market have been impacted by rising fuel prices, equipment shortages, and limited workforce. The unusual nature of this current economy has made it very difficult to predict how the flow of products to market and production costs will fluctuate. Like many manufacturers who rely on raw materials which have been impacted by global shortages, AMERICAN has been forced to update our supply structure. Customers can expect further lengthening lead times and price volatility. For our ADIP/ASWP products, base pricing can be provided at bid time, and we will provide a bid-time volatility adder or escalator(as listed by various market indexes). Final, confirmed pricing will be provided at time of shipment. As for our AFC products, we have recently updated our pricing, but further pricing updates may be necessary as supply volatility continues to impact our ability to manufacture our products and get them to market. We will work to minimize the impacts of this market unpredictability, but we have no choice other than to adapt to these historic market circumstances. No longer can there be any long- term guarantees of price or availability. As AMERICAN (and many other companies) adjusts to these new market realities, we recommend that you consider including provisions within your bid and contract process to allow for supply and cost volatility. This will reduce the unexpected impacts of supply extensions and cost increases. Our personnel are available to discuss strategies to minimize the impacts of this volatility. While there is no perfect solution for these volatile market conditions, our new supply structure is intended to help our customers and partners to plan for and adapt to current and future market impacts.As always,we at AMERICAN appreciate your support, and we thank you for your business. Sincerely, W.D. "Skip" Benton John E. Hagelskamp VP, Sales —ADIP&ASWP VP, Sales —AFC AMERICAN Ductile Iron Pipe-AMERICAN Flow Control-AMERICAN SpiralWeld Pipe-AMERICAN Steel Pipe-AMERICAN Castings-International Sales P 0 Box 2727-Birmingham,Alabama 35202-2727-amencan-usa corn (AN A;71 ' \ J FLOW CONTROL THE RIGHT WAY March 17, 2022 TO: AMERICAN Flow Control Distributors RE: PRICE INCREASE-Effective March 18, 2022 Due to extreme increases in input and transportation costs, AMERICAN Flow Control will implement a price increase of approximately 10 percent effective at close of business, March 17, 2022. We will increase prices by reducing discounts applied to our price list dated December 1, 2021. Increases will affect the products shown below: PRODUCT AWWA&UL/FM DRY BARREL FIRE HYDRANTS 2"— 12"RESILIENT WEDGE GATE&TAPPING VALVES 14"—24"RESILIENT WEDGE GATE&TAPPING VALVES ALL CHECK VALVES UL/FM INDICATOR POSTS ALL TAPPING SLEEVES TRENCH ADAPTER&RETROFIT VALVE BOX INSERT ALPHA"JOINT ENDS ADDER CAPTIVATER®-LOCKING HYDRANT NOZZLE CAP ALL REPAIR PARTS FIRE HYDRANT EXTENSIONS&TRAFFIC KITS Any orders received on or after March 18,2022,will be processed at new pricing. Thank you for your business.Your AMERICAN Sales Representative will be in contact with you to establish your new discounts as well as answer any questions you may have. Regards, Robert H. Patton Director of Project Management AMERICAN Flow Control AMERICAN Ductile Iron Pipe-AMERICAN Flow Control—AMERICAN SpiralWeld Pipe-AMERICAN Steel Pipe-AMERICAN Castings-International Sales P.O.Box 2727-Birmingham,Alabama 35202-2727—american-usa.com Mueller Water Products phone:770-206-4200 MUELLER Headquarters 1200 Abernathy Road NE Suite 1200 Atlanta,GA 30328 March 1, 2022 To: Mueller®and U.S. Pipe®PRODUCT DISTRIBUTORS Re: Immediate Price Increase In order to offset continued rising material, logistical and labor costs we are announcing a price increase for the products listed below.This price increase will be effective immediately, March 1, 2022 and implemented as follows. Mueller&U.S. Pipe AWWA/ULFM Products: Change: • Dry Barrel Fire Hydrants 3.0 point discount reduction • Wet Barrel Fire Hydrants 3.0 point discount reduction • 2" - 54" Resilient Wedge(RW)Gate and Tapping Valves 3.0 point discount reduction • 14" - 36" Double Disc(DD)Gate and Tapping Valves 3.0 point discount reduction • Indicator Posts 3.0 point discount reduction • Iron Tapping&Split Repair Sleeves, &Crosses 3.0 point discount reduction • Cut-In Sleeves and Valves 3.0 point discount reduction to 3.0 point discount reduction • Fire Hydrant Extension, Repair Kits&all other repair parts The price change will be implemented as follows: 1. Any orders received after 4pm CST/5pm EST Tuesday March 1, 2022,will be entered and invoiced at new price. 2. Fixed price municipal contracts will be price protected for duration of the contract. 3. Distributor quotations to contractors are not price protected. Your Territory Manager will contact you to review these increases and answer any questions. Regards, S , Mike Lindgren Vice President-Distribution MUELLER® I ECHOLOGICS® I HYDRO GATE® I HYDRO-GUARD® I HYMAX® I i20® I JONES® KRAUSZ® I MI.NET® I MILLIKEN® I PRATT® I PRATT INDUSTRIAL® I SINGER® I U.S.PIPE VALVE AND HYDRANT CLOW Clow Valve Co. 902 South 2nd Street Telephone: 641 673 8611 Oskaloosa, IA 52577 Fax: 641 673-8269 March 3rd 2022 To: All Clow Valve AWWA Distribution Re: Price Increase Applying to AWWA and UL/FM Products,Effective the end of business, Thursday,March 3rd, 2022. Effective the end of business, Thursday,March 3rd,2022, Clow Valve Company will be instituting a price increase on the below listed AWWA products. The increase will be accomplished by a reduction of the current discount points as shown below. There will be no change in the list prices. Size Range Product Line Discount Reduced By All Dry Barrel Fire Hydrants 3.0 points 12"and Below AWWA Resilient Wedge Gate and Tapping Valves 3.0 points 14"and Above AWWA Resilient Wedge Gate and Tapping Valves 3.0 points All Double Disc Gate Valves and Tapping Valves 3.0 points All Hydrant Extension and Repair Kits 3.0 points All Repair Parts 3.0 points All Indicator Posts 3.0 points All Wet Barrel Hydrants 5%Net Price Increase All Butterfly Valves 8%Net Price Increase All Plug Valves 8%Net Price Increase All Check Valves 8%Net Price Increase New prices will apply to all orders received after end of business on Thursday,March 3rd,2022. Any orders received before the end of business Thursday,March 3rd, 2022 with no shipping restrictions will be price protected. Any orders received before end of business Thursday,March 3rd,2022 with customer restricted extended shipping dates will be invoiced at the prices in effect at the time of shipment. There will be no extended shipments at old pricing. Material covered in fixed price municipal contracts will be honored for the original contract bid quantities for the duration of the contract. Effective Thursday, March 3 Pt, Cash Discount Term eligibility requires that payment must be received on or before due date. Check dates or post marks will not be considered. To avoid any potential issues with delays, it is strongly encouraged to pay by Automated Clearing House(ACH) Your Sales Representative will be in contact with you prior to the effective date,to review these increases and to answer any questions you may have. Thank you Yee/fre gic/(//(g. ew Steve Werninger National Sales Manager E SIGMA® 700 Goldman Drive P: (256)496-3388 Quality— Service— Commitment— Delivered. Cream Ridge, NJ 08514 gf1@sigmaco.com March 21, 2022 To: SIGMA Customers Re: Supply Chain and Costing Update Although inflationary pressures and supply chain disruptions have been a part of our industry for nearly a year now, the recent geopolitical events in Ukraine have exacerbated an already challenging situation. In addition, though much less visible, SIGMA and other globally sourced producers are in the midst of negotiating new freight rates for the 12 months beginning May 1st. Both the war in Ukraine and the future freight rates look to greatly influence our business in the short term and into 2023. Consequently, we want to share some of the details of these influencers to best prepare you for the realities ahead. Ocean Freight The severe container imbalance originating from the Covid-19 shutdowns in 2020 remains attenuated by the continued high demand for globally sourced products. The insufficient to container capacity in active operation has caused many freight carriers to move away from annual contracts for the 2022/23 year and, alternatively, offer freight rates for shorter periods of 4 — 6 weeks. While it is true that the headline-grabbing spot rates paid for containers at the height of the shortage have dropped, the reality is that SIGMA anticipates its average freight rates to increase significantly as a result of the change in the carriers' pricing methods. On a positive note, SIGMA has experienced improved container availability — particularly out of China. Container availability in India is more challenged but, largely, space is allocated monthly to handle the majority of SIGMA's production. While the news on container availability is encouraging, SIGMA's limited inventories coupled with the high industry demand ensures that supply chain will be constrained through 2022. Raw Material Costs For much of this calendar year, raw material costs in both India and China have been relatively stable at the elevated levels set in 2021. However, the Russian invasion of Ukraine created a severe disruption and surge in costs of raw materials as both Russia and Ukraine are major exporters of steel and iron. For various economic and geographic reasons, these raw material increases are more significant in India. Within SIGMA's production in India, the inflationary pressures are greater on its line of Municipal & Construction Castings as those products are manufactured almost exclusively with import pig iron. Though MJ and Flange fittings produced in India utilize some domestic steel, the sizeable disruptive impact of the war on raw material prices and availability in Europe and Western Asia will impact the cost of these goods too. www.sigmaco.com 2 Conclusion All said, product remains in limited supply and cost pressures continue to be inflationary. For cast iron valve boxes, meter boxes, manhole frames & covers and the like, we anticipate significant increases. In fact, we may be forced to adopt monthly pricing adjustments based on raw material volatility. Also, we cannot guarantee that we can protect and honor backorders; however, no firm position is set. For Fittings and MJ Accessories, we are aggregating the increased costs from our blended sources and will set pricing and policy accordingly. For Pipe Restraint, freight rates, at this time, seem to be a greater influencer on cost increases. Therefore, price adjustments, if any, will be later this calendar year. After a demanding 2021, we realize this news is not welcome. However, it's the realities of today's environment. As such, we want to keep you, our customer, as informed as possible. We at SIGMA are happy to further discuss the details of this letter with you. Please reach out if you care to further discuss. As always, we appreciate your support and business particularly in this challenging time. Sincerely, to Greg Fox I Vice President of Sales SIGMA Corporation 256.496.3388 GF1@sicimaco.com 700 Goldman Drive 5000 Askins Lane 4652 E. Guasti Rd 21699 Torrence Avenue Highway 22 West Cream Ridge, NJ 08514 Houston,TX 77093 Ontario, CA 91761 Sauk Village, IL 60411 Alexander City,AL 35010 CRMCSR@sigmaco.com HTNCSR@sigmaco.com ONTCSR@sigmaco.com CHICSR@sigmaco.com RSPCSR@sigmaco.com E SIGMA® 700 Goldman Drive P: (256)496-3388 Quality— Service— Commitment— Delivered. Cream Ridge, NJ 08514 gf1@sigmaco.com March 22, 2022 To: SIGMA Customers in the US Re: Domestic Product Category Price Increases For reasons communicated in our letter dated March 21, 2022, SIGMA is announcing a price increase on its product offering of domestically produced Fittings, MJ Accessories and Pipe Restraint. Effective Wednesday, March 23, 2022, the following multipliers will apply its domestic product offerings: AWWA Fittings x. Zinc Coated P-401 x. MJ Accessories x. Pipe Restraint x. Existing orders that remain unshipped as of Monday, March 28th, will be repriced at the to announced Lists and Discounts. Finally, we emphasize that costing of raw materials remains volatile. Future increases may be a reality. Please contact your SIGMA Territory Sales Manager if you have any questions. As always, we appreciate your business and support. Sincerely, G' 561‹ Greg Fox I Vice President of Sales SIGMA Corporation 256.496.3388 GF1(a�sigmaco.com so ICE4N c 55 vo \. TEARS wJ E SIGMA www.sigmaco.com TYLER UNION® Quality Waterworks Products March 21, 2022 To: All Tyler Union Customers Re: Change in Pricing Multipliers on new and existing open orders. Per our communication of March 16, 2022, we are experiencing a high degree of price volatility within our costs for raw materials, domestic & global freight and energy. We have looked at several options and solicited customer inputs on how to best address this situation including backorders. While absorbing additional increases will be difficult for our customers, the consistent feedback was that an approach of revising the order and invoiced price was strongly preferred over implementing surcharges. Tyler Union will be increasing our pricing per the below percentages on both new and existing confirmed orders. This revised pricing will be firm through May 31, 2022, at which point it will be reviewed and subject to change based upon the current cost data. % Change From Product Previous Price Domestic Fittings 4% Domestic Municipal Castings 10%* to Domestic Glands & Accessories 4% Domestic Restraints 4% Import Fittings 6% Import P401 Fittings 11% Import Municipal Castings 17%* Import Glands & Accessories 6% Import Restraints 6% * per our prior municipal castings price increase letter We thank you for your continued support of Tyler Union and look forward to providing you with quality waterworks products, as we have for nearly 100 years. Sincerely, Jerry Jansen National Sales Manager SSTAR PIPE PRODUCTS March 22,2022 To: Our Valued Star Pipe Customers: RE: Price increase notification—change in multipliers on new orders and existing orders not released Due to rapid increases in raw material and fuel costs,we are increasing our pricing to the below percentages effective 3/23/2022. Confirmed purchase orders with no shipping restrictions received by 3/23/2022,will be honored at the confirmed pricing. Confirmed orders not released by 3/28/22 will be repriced at the below multipliers. Domestic Products Approx%Increase Price Lists Domestic Utility Fittings 4% DOM-UPL.22.01 Domestic FBE Fittings 4% DOM-FBE-UPL.22.01 Domestic Zinc Fittings 4% DOM-ZINC-UPL.22.01 Domestic P401 Lined Fittings 4% DOM-P401-UPL.22.01 Domestic Joint Restraints 4% DOM-JRPL.21.03 Domestic MJ Accessories 4% DOM-ACC-UPL.22.01 Import Products Approx%Increase Price Lists Import Utility Fittings 6% IMP-UPL.21.03 Import FBE Fittings 16% IMP-FBE-UPL.22.01* Import Zinc Fittings 6% IMP-ZINC-UPL.21.03 Import P401 Lined Fittings 11% IMP-P401- UPL.21.03 Import Joint Restraints 6% IMP-JRPL-22.01 Import MJ Accessories 6% IMP-ACC-UPL.21.03 Import Fabrication Products 6% IMP-FAB-UP.21.03 Municipal Castings TBA *Revised list price for Import FBE Fittings will go into effect with the new multipliers We appreciate your continued support and remain committed to earning your business. Sincerely, Jason O`Nan,Vice President Star®Pipe Products STAR®PIPE PRODUCTS � S? 4018 WESTHOLLOW PARKWAY HOUSTON, TEXAS 77082-4604 T: 281.558.3000 TOVRheinland wwww.starpipeproducts.com F: 281.558.9000 uo�a +o FOUNDRY zdz, /ADS March 18, 2022 Dear Valued Partner, Market conditions continue to be extremely volatile and input costs continue to increase. Inflationary costs, such as labor, diesel and transportation are playing a greater factor in our cost to serve, and these additional costs are at unprecedented levels. As a result of these increases, ADS must raise prices on all pipe, fittings and Allied Products a minimum of 10%. • AASHTO and ASTM F2648 pipe • HP Storm and HP Sanitary pipe • Single Wall Pipe • PolyFlex and small diameter sewer and drain pipe • All Fittings • StormTech, Nyloplast, Inserta Tee, FlexStorm, Duraslot and Water Quality to Effective immediately, ADS will increase pricing on all new quotes. Existing quotes will be honored for the customary 30-day period. Existing purchase orders will be honored for 30- days. After the 30-day period, both quotes and orders will be subject to this increase. All new stock pricing will be effective immediately. Existing stock purchase orders will be honored for 30-days. We appreciate your understanding as we work through these volatile times. We look forward to continuing to build a mutually beneficial relationship and truly appreciate your business. Please work with your local sales professional for any additional questions or needs. Sincerely, Mike Huebert SVP Sales Our reason is water." — Advanced Drainage Systems,Inc. 4640 Trueman Boulevard,Hilliard,OH 43026 Tel(614)658-0050 adspipe.com k DIAMOND PLASTICS® CORPORATION Corporate Headquarters: 1212 Johnstown Rd. • P.O. Box 1608 • Grand Island, NE 68802-1608 800-PVC-PIPE • 800/782-7473 • www.dpcpipe.com Date: March 21st, 2022 TO: Municipal & Ag Customers FROM: D. Bauer & S. Yentes Subject: PVC Pipe Price Increase We continue to experience raw material and labor related production interruptions. Costs of raw materials, freight and labor continue to escalate. Demand for the spring season is taking off and delivery times will likely be impacted as a result of these trying circumstances. As a result, we are raising our standard block pricing as follows: Immediate Shipments Block Quotations Block We appreciate your business. Our sales force is dedicated to maintaining communication to ensure your needs are served to the best of our ability. 6uen 40 2/e 4 Eicee€e ce Manufacturing Locations: Grand Island, Nebraska - Lubbock, Texas - Macon, Georgia- Muncie, Indiana Golconda,Nevada - Plaquemine, Louisiana - Casa Grande, Arizona Corporate Offices One N Page Avenue,Endicott,NY 13760 800.836.4350 607.729.9381 Fax: 607.729.6130 AT10nAL PIPE b PLASTICS,inc. www.nationalpipc.com Americun-made products since 1970 National Pipe & Plastics, Inc. Memorandum Date: March 21, 2022 To: All Sales Representatives From: Matt Siegel, Pete Craner, Jeff Kurkoski Subject: Municipal Price Increase to Considering the current state of the PVC pipe industry, effective immediately,we are implementing the following pricing on our municipal products: Immediate Block (subject to availability) Standard Quotes Block Please note that this supersedes all previous price announcements. All orders are subject to availability. All expired orders and quotes will be repriced at current levels. Note: Full bundle quantities will be required on all stock and direct shipped orders. NAPCO,a Westlake company NAPCO 2801 Post Oak Blvd.,Suite 600, Houston,Texas 77056 Tel:713.840.7473,Fax:713.552.0087 Date: March 21 st, 2022 To: All Municipal Customers From: Brent Wetmore, Vice President - Sales Subject: PVC Pipe Prices — Municipal Products NAPCO appreciates your business and your continued patience regarding lead times and fill rates. Our lead times have been improving, but they are still not at acceptable levels. This is due to the continued disruption in supply of several of the additives used to make PVC compound. These additives are in limited supply and have lengthening lead times. Further, freight, in conjunction with all of the raw materials continue to rise in price. As a result of these continuing uncertainties and rising costs we must put through the following increases. Effective immediately our Block pricing for both Immediate Orders and 30/30 quotes will move to the following levels. Immediate Shipments: Block (all diameters) Quotes 30/30: Block All current orders will be honored within terms and are subject to our ability to ship. Orders with expired terms will be re-priced. If you have any questions regarding product availability or this price increase, please contact your local North American Pipe sales representative. We appreciate your business and look forward to continuing to serve your PVC pipe needs. vt6�Q, 7000 Central Park, Suite 800 Atlanta, GA 30328 Oldcastle Infrastructure" A CNN COMPANY oldcastleinfrastructure.com March 17, 2022 To our valued customers: The current market environment and rising global turmoil continues to create challenges for all of us in the building products industry. Businesses across North America are contending with rising prices for raw materials, labor, equipment, and freight. In response to these continued challenges, we are implementing a 15% price increase effective April 25th across all Oldcastle Infrastructure enclosure products & brands. 0 All list prices and all existing quotes will be impacted by this increase. Updated pricing will be provided to all customers by April 22, 2022. 0 All new quote requests will reflect the increased prices effective immediately. 0 Pre-price increase orders will be limited to 1/12th of the annualized order volume by customer location and must be for immediate release. Q Current orders in backlog for immediate release and shipment scheduled prior to April 18th will be honored at current prices. Orders shipped after April 25th will be evaluated and subject to the prices in effect at the time of shipment. to Please reach out to your Oldcastle Infrastructure Region Sales Manager if you have any questions. Thank you for your continued support. Will Costanza Vice President, Commercial SOLMAX t, TENCATE Propex -_� GEOSYNTHETICS March 11, 2022 Subject: Geosynthetic Price Increase Ladies &Gentlemen: We have been monitoring market conditions since our letter dated February 25, 2022. Not surprisingly, the Russian invasion of Ukraine continues to negatively impact markets around the world. Specifically, the petroleum market has increased 21.5%since the situation began in February and has translated into significantly higher polypropylene resin and related cost increases. As a result, Solmax must implement a price increase on our products, including Mirafi®, Propex®, and Geotex° brands as follows: 15%Increase: o Mirafi N, E, &S-Series, Geotex nonwovens (i.e., 180N, E1200, S800, 801, 861) o Mirafi MPV-Series, Petromat° paving nonwovens (i.e., MPV500,4598) o Mirafi PT-Series polyester nonwovens(i.e., PT08, PT800E) o Mirafi X-Series, Geotex slit tape wovens (i.e., 500X, 200ST) 12%Increase: o Mirafi FW-Series, Geotex monofilament wovens (i.e., FW700, 104F) o Mirafi HP-Series, Geotex mid-strength wovens (i.e., HP570,4X4HF) to o Mirafi RSi-Series, H2Ri, high-performance reinforcement wovens (i.e., RS380i, RS580i) o Miramesh° wovens (i.e., GR, FR) 10% Increase: o Mirafi BXG-Series, Gridpro° biaxial geogrid (i.e., BXG110, BXP41) 7%Increase: o Mirafi MPM/MPG/MTK, Petrotac engineered paving products o Miragrid°XT-Series uniaxial PET geogrids (i.e., 3XT, 24XT) o Propex Landlok° erosion control blankets o Geotube° solutions Per Project Pricing: o Propex Pyramat®, Armormax° erosion control solutions *Products/brands not listed above are also subject to a price increase. Contact sales with questions.* Price increases will go into effect on Monday,April 18, 2022 with the following criteria,which will be strictly enforced: • Orders placed prior to the price increase implementation date must ship by Thursday,April 14, 2022,to be shipped at pre-increase pricing(our facilities are closed on Friday,April 15, in observance of Good Friday). Note that the availability of shipping slots will be limited. Orders that do not ship by this date will be shipped at increased pricing so order early. • Pricing will not be held on remaining open and blanket orders and all announced increases will apply. Customer Service will reissue acknowledgements for all orders that do not ship prior to the increase. • All quotes are subject to the announced price increases. Expired quotes will not be honored. Please work with your sales contact for revised quotes for any upcoming projects. 365 South Holland Drive Tel 706 693 2226 Fax 706 693 4400 Pendergrass,GA 30567 Tel 888 795 0808 www.solmax.com SOLMAX • Material that is not picked up on the scheduled appointment time/date will result in the forfeit of allocated material and will result in extended lead times and post increase pricing. Solmax must hold firm to these announced parameters to ensure quality service to our customers. Please continue to stay in close communication with your sales contact during this time. We are concerned that the USA's ban on oil imports from Russia will lead to further upward price pressure as well as pressure on available supply. With this in mind, we believe it is reasonable to assume that additional raw material price increases are likely in the future. Thank you for your continued business and commitment to the geosynthetic market. Best Regards, ,D., cac-AA-4A---4"---- John D. Herrmann Commercial Director—Eastern U.S. & Caribbean to 365 South Holland Drive Tel 706 693 2226 Fax 706 693 4400 Pendergrass,GA 30567 Tel 888 795 0808 www.solmax.com Certificate of Executive Director for Emergency Purchase I, Jeremy D. Johnston, Executive Director of the Clay County Utility Authority, hereby certify that the action taken as described below, in conjunction with the attached purchase order and supporting documentation, is necessary to be taken by the Clay County Utility Authority, an Independent Special District of the State of Florida, to protect public health, safety and welfare. CCUA Resolution No. 2013/2014-07, Section 6, Paragraph B, authorizes such emergency purchases. 4 riattohns •n, PE, MBA CC I Executive Dire or 2,2Z Date Total Vendor Name Description 3/24/2022 >$10,000 Fortiline Dual Check Valves Summary Clay County Utility Authority (CCUA) installs dual check valves as part of residential potable water meter systems. A dual check valve is a type of back flow preventer. The Florida Department of Environmental Protection requires backflow prevention on potable water for customer with access to reclaimed water services. These devices stop unintended backflows from homes into the potable distribution to protect public health and safety. On February 28, CCUA placed an order with Ferguson, the contracted vendor, and no issues were communicated. Historically, orders have not exceeded a two-week delivery period. However, Ferguson recently told CCUA the order would take 15-18 weeks. Ferguson contacted all vendors to no avail, and CCUA contacted other utilities that are experiencing the same problem. After much due diligence, CCUA staff found a vendor, Fortiline, that has 77 AY McDonald and 95 Mueller dual check valves in stock. Fortiline cautioned this supply may not be available as soon as tomorrow. With this information, staff recommends an emergency purchase of these materials to continue installing potable water meters to serve new customers.