PLEASE READ THE NU-WOOL CO., INC. ANNOUNCEMENT BELOW OR FOLLOW THE LINK TO VIEW AND DOWNLOAD THE PDF DOCUMENT.
“Dear General Insulation Company,
As we notified you in our January customer letter, the pandemic has significantly driven up the cost of Nu-Wool’s paper supply in 2020 and 2021. Many of these increases were directly tied to the periodic shutdowns of recycling companies due to the pandemic, as well a major reduction in availability of office paper causing significant reductions in supply. This was coupled with a significant and unprecedented demand for paper products like paper toweling, toilet paper and especially shipping boxes. These factors caused every one of our competitors to raise pricing in 2020. However, as you know Nu-Wool chose not to pass on any increase in 2020, and further decided to hold pricing through June of 2021. We had hoped that giving the paper market time to adjust from periodic shutdowns and other pandemic related issues would allow Nu-Wool to avoid passing through a price increase this year, or at least only a small increase. However, with demand still very strong for shipping boxes due to record high and sustained demand from online ordering, as well as office paper still at a shortage, paper pricing has not decreased. In fact, it has increased another 7% in 2021 for a total increase of 51% since January 2020. In addition, Nu-Wool has received several other raw material price increases and labor costs have continued to rise. Due to these unprecedented increases spurred on by the pandemic Nu-Wool unfortunately needs to pass through a portion of these increase by announcing a 9.5% increase on all cellulose insulation products as of July 1st, 2021.
We know these uncertain times are difficult for everyone. We appreciate your understanding, and as always, thank you for your continued business. Please do not hesitate to contact either of us or your Area Manager if you have any questions about these price increases.”
Mark Henderson
President
Nu-Wool Co., Inc.
mjhenderson@nuwool.com
Matt Henderson
Vice President
Nu-Wool Co., Inc.
mphenderson@nuwool.com
