International Door & Operator Industry

NOV-DEC 2018

Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.

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Page 16 of 110

President Trump signed an order imposing significant tariffs on steel and aluminum imports from a number of countries, the list of which now includes China, the European Union, Canada, Mexico, Japan and others. The tariffs were imposed against certain countries on March 23 and the list was expanded on May 31. For the garage door industry, the impact of the tariff announcement took only a few weeks to hit. By the end of June, several major manufacturers had announced price increases of 5 percent or more due to the cost escalations. These manufacturers included Clopay, Amarr and Wayne-Dalton. Since then, the ripple effect has included shortages of steel and aluminum, as so many industries attempted to horde the raw materials before the tariffs went into effect. Now these tariffs are in place against China and other countries, the U.S. is waiting to see what comes next. The tariffs and its impact on material costs are just the latest in a series of cost effects hitting the construction industry in the last few years. Labor shortages have starved many companies - including IDA members - for technicians and other skilled field staff needed to do physical labor. Those who are still available are demanding higher wages. The goal of this article is to highlight the issue of cost escalation and explain how IDA members can use their contracts to protect against some of these impacts. Contractually Dealing with Cost Escalation Even for something as mundane as a garage door sale, it may be worthwhile to include a cost-escalation clause in your contract. This recommendation is particularly true for longer-term projects and/or commercial or government jobs, where there may be significantly more material to be Continued on page 16 It isn't often politics have a direct and immediate impact on the garage door industry, but in March 2018, one such political act began a chain of events that are still rippling through even now... PROTECTING AGAINST COST ESCALATION PROTECTING AGAINST COST ESCALATION By Brian J. Schoolman, Safran Law Offices LEGAL&LEGISLATION 14 International Door & Operator Industryâ„¢

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