John Boos & Co., based in Effingham, Illinois, is the nationwide leader in the manufacture and sale of butcher block countertops, islands, tables, carts and cutting boards for residential use, and of stainless-steel work tables, cabinets, and compartment sinks used in commercial kitchens. The company recently announced it will hike product prices about 10 percent on average, effective June 1, due largely to rising material costs.
Boos & Co. consumes a vast amount of hardwood lumber and stainless steel – two raw materials that have experienced tremendous runups in price over the past two years. According to the Economic Research Division of the St. Louis Fed, from April, 2020 through April, 2022, the Producer Price Index (PPI) for the commodity, hardwood lumber, mushroomed from 204 to 303 (where 1982 = 100), translating to a 49 percent increase. During that same time period, the PPI for steel wire and stainless steel expanded 46%, rising from 117 to 171 (where 1982 = 100).
In a company announcement to Boos dealers, National Sales Manager Steve Pless explained, “We continue to experience challenges associated with supply chain insufficiencies, and the rising costs of most commodities. Stainless Steel Material, Maple Lumber and Transportation costs continue to forge a footprint with historic all-time highs, all of which are amplified by strong demand. We are making every effort to work around the disruptions presented and strive to the best of our abilities to deliver product to you and your customers’ expectancies.”
North American hardwoods such as maple, walnut, cherry and oak, are typically used to make flooring, moulding, fine furniture, and kitchen counter and island tops – applications where durability and appearance are critical. Because hardwoods are in high demand and grow more slowly than softwoods, they tend to be more expensive than softwoods.
Similarly, stainless steel is more expensive than regular steel. That’s because of its rust-resistant composition, which includes 10 percent chromium by weight. Chromium forms a chromium-oxide film that prevents the formation of iron oxide (rust).
This news update is presented by the Butcher Block Co. – an online store specializing in butcher-block products, including John Boos butcher block countertops, kitchen furniture, and cutting boards, plus Boos stainless-steel products.
Butcher Block Co.
Butcher Block Co.
10448 N 21st Pl Phoenix, Arizona
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Entrepreneur Yak journalist was involved in the writing and production of this article.