Volume 36, Issue 2, February 2001

Increasing Natural Gas Cost Lead to Second Hike in Float Glass Price

Float glass suppliers have once again initiated an energy surcharge due to the rising costs of natural gas, the second since October 2000 (see related story, November 2000, USGlass, page 20.). The surcharges originate with flat glass suppliers altering last fall’s $300 surcharge per truckload of raw glass to $500 per load, which went into effect January 1, 2001. Many fabricators and distributors unable to absorb the increase have had to pass the surcharge on to their customers as well, with surcharges ranging from 1.5 percent to 4.5 percent.

In a letter to customers from HGP Industries dated December 15, 2000, HGP general manager Dave Mailhiot and assistant general manager Michele Kramer state: “To recover this increase in our raw gas costs, effective January 1, 2001, we will add a 6 cents per square foot energy surcharge to your invoice …” Milgard Tempering Inc. sent a similar letter to its customers stating, “During the past three months, natural gas prices have continued to rise. As we anticipated back in October, the surcharge per truckload to glass fabricators has just increased again … based on this rate change, we will be implementing a surcharge of 1.5 percent on all shipments effective January 2, 2001. This temporary surcharge will be applied to all invoices, including quoted projects.” Other surcharges have been initiated by companies such as Arch Aluminum & Glass Co. with a 6 percent increase and Karas & Karas with a 9 percent increase.

Future quarterly energy surcharge adjustments are expected by
mid-March.

USGlass will keep you informed.

Action Bullet Resistant Gets a New Home
Action Bullet Resistant of West Islip, N.Y., packed up and moved just a few doors down to its new location. “We outgrew our old location,” said Lenny Simonetti, Action Bullet Resistant president.

The new location is four times the size of the previous facility, and the company says they will now be able to better accommodate the industry’s growing demand for bullet-resistant aluminum doors and framing systems.
Along with the move to a new building, the company also expanded and upgraded its computers and Internet systems. A larger fabrication space and a growing drafting department are other expansions included in the move. “We made all the changes to better market and expedite orders,” said Simonetti. “Now that we have moved and expanded, we can stock and warehouse more for our customers.”

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