Leaner Manufacturing, Other Economic Factors are Key Reasons
Kinze Manufacturing, a leader in the agricultural equipment industry, announced that the company will not increase its product prices on the majority of its products for the 2010 season, due to a number of economic factors and successful improvements within its manufacturing and purchasing processes.
"We are delighted to be able to make this announcement today, both from a business standpoint and from an emotional standpoint," says Susanne Veatch, Vice President and Chief Marketing Officer at Kinze Manufacturing.
"From a business standpoint, today's announcement means we've been successful with a variety of internal process improvements that allow us to keep costs from increasing.
"From an emotional standpoint, many of us at Kinze, including my family, have personal farming operations, so we understand the toll that today's economic conditions are taking on the nation and on our fellow farmers. So we're pleased to be able to offer some positive news on an economic front for corn and soybean producers and the equipment industry."
Veatch cited a number of factors that contributed to the company's ability to hold the line on most of their product prices for the 2010 season. First and foremost, according to Veatch, the Kinze workforce was a major contributing factor to the company's continued economic health and its ability to hold the line on prices.
"We have a tremendous group of hardworking, loyal and innovative employees at Kinze Manufacturing," she explains. "Because of their intense work ethic, pride in what they produce, and the quality of the ideas they bring to our process, we can control manufacturing costs more efficiently and hold down prices."
Several other factors also contributed to the company's ability to avoid price increases on most products, including:
- The fact that markets for Kinze Manufacturing's products have stayed more robust than other equipment market segments, meaning continued strong product demand
- As other industrial segments have softened (such as construction and automotive), raw materials costs have as well. This, coupled with a more strategic purchasing process at Kinze Manufacturing, has enabled the company to optimize the benefit of softer raw materials pricing.
- Other economic factors such as decreasing fuel and utility costs also contributed to the overall decision to not increase prices.