During the past weeks and months, extraordinary effects on a global scale have increased inflationary pressure, which has led to a significant upward impact on production costs for Xsys’s equipment.
The core priority for Xsys is to deal with significant shortages across materials used to produce components and housing for ThermoFlexX imagers and Catena processing equipment. The material cost already increased by 10–20% in 2021, with no indication for recovery throughout 2022. In particular, Xsys is experiencing significant cost increases across the following inputs and materials –
- Steel and plastics – Global shortages have caused price increases of at least 15% in 2021
- Electronics – Global shortages and supply chain issues resulted in double-digit price increases in 2021, and price increases have already been announced for 2022
- Energy – Soaring gas and electricity prices are increasing production costs for the company and its suppliers
- Logistics – Sea and land freight costs have increased not only for direct shipments to the customers of Xsys but also indirectly, further contributing to inflation of all input materials.
Xsys comments on the price increase for ThermoFlexX products
While some inflationary developments can be absorbed by implementing efficiency improvements as well as qualifying alternative suppliers, extraordinary and persistent inflation levels now leave Xsys no other option than to implement a price increase of 10–15% across the ThermoFlexX imagers and ThermoFlexX Catena equipment, as well as on spare parts and service agreements.
Friedrich von Rechteren, Global Commercial vice president at the company, concludes, “We understand that this price increase adds pressure to our customers’ business during these difficult circumstances. It has not been an easy choice for us to make. However, to ensure consistent and reliable supply to our customers, we see no other way than passing on some of these costs.”