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Date:
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August 13, 2018
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To:
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Acuity Brands Distributors
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Subject:
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Price increase and projected USTR tariff impacts
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Over the last several months, our business has been greatly affected by cost increases on many fronts, including commodities (such as steel), certain electronic components, transportation and wage inflation. In addition, we have experienced higher costs from tariffs implemented by the U.S. Department of Commerce and the U.S. Trade Representative (USTR), and anticipate additional costs resulting from proposed tariffs. As such, we are announcing the following:
- A price increase of up to 6% on the majority of all lighting and lighting control products will be effective September 17, 2018. Specific category increases will be shared in subsequent communications through your Acuity agency sales representative. The last day for entry and release of orders at current prices is September 14, 2018. All orders after this date will be invoiced at the new prices. Committed projects that cannot be released for immediate shipment on or before September 14, 2018 will need to be re-submitted to Acuity for review.
- Government-imposed tariffs impacting Chinese components and finished goods will require us to pass on these costs through additional, proportional price increases on impacted products sold by Acuity Brands.
- Section 301 tariffs covering more than $34B in Chinese imports went into effect on July 6th with an additional list for $16B of imports that will go into effect on August 23rd. These tariffs are expected to impact the cost of future material supply.
- Additional tariffs on approximately $200B in Chinese-produced components and finished goods are planned, which will have a significant cost impact if implemented.
We are currently evaluating the impact of these tariffs across our product offering, and we will continue to keep you updated in the coming weeks on additional tariff-related increases.
We remain committed to supporting our industry partners as we all work to grow together through these difficult market challenges. As you know, Acuity Brands has invested heavily in our strategic partnerships, and we will continue to be a partner as we work through these difficult market challenges.
Best Regards,
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Sero Cardamone
SVP, Global Sales
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Amra Boucher
VP, Customer Engagement
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Mike DeBlois
VP, Pricing Operations
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