I suspect manufacturers have had annual price increases since they began producing the items we need. So far this week we have been informed by one of our suppliers that the condensing boiler we use most often is going up by six percent. A manufacturer’s representative that we speak to often warned me today that the ball valves we use almost every day are going up by five percent. I suspect most if not all the other manufacturers we count on will follow suit.

We currently have about ten bids that have been submitted within the last three months. These bids may or may not get approved. Some of these bids are for simple residential boiler replacements, while others are for larger commercial jobs. When we bid on these jobs, we did not factor in these price increases. It is clearly stated in writing that these bids are good for a set period, typically thirty days.

For the last five years or so, it appears that the manufacturers in the heating business have increased their pricing for a lot of reasons. There was the pandemic, shortages, tariffs, no truck drivers, border issues, lack of factory workers, highway bridges collapsing on the roadway, bridges collapsing that were hit by ships, massive cargo ships blocking the Suez Canal and who knows what the other reasons.

Lately we have been getting updates daily regarding the tariffs. While most of the equipment we purchase claims to be American made, I am not so sure this is completely true. Most if not all the condensing boiler blocks (heat exchangers) we use are imported from Europe or Asia. Many of the circulator pumps we use have foreign components; however, some might be assembled in the Unites States. Much of the pipe and fittings we purchase come from outside of our country. Many of the controls come from Mexico. I am all for “Buy American,” but what actually constitutes as American anymore?

I am not sure how manufacturers in the heating business can predict how much to increase their prices. Copper is at record levels, gold is at record levels, I’m guessing stainless steel and brass are near record levels. If stainless steel costs rise sharply and our government issues large tariffs on Poland and France what will happen to condensing boiler costs?

I now have to wrestle with the added cost for materials. Our labor and overhead is not getting cheaper either.

Last week a customer sent me an email asking if I can hold my price until September for a job we bid on back in January. The job includes repairing and replacing leaking steel risers and radiator shutoff valves on a seven thousand square foot home that was built at the turn of the twentieth century. The church owns this massive house and it is occupied by the Pastor. I have to spend a few minutes trying to calculate (guess) what our cost of doing business will be in six months. I also have to calculate (guess) what the materials will cost in September. According to Google, the thermostatic radiator valves we proposed are made in South Carolina, China, United Kindom, Italy and Mexico. I wonder what the cost of these TRV’s will be? Perhaps more importantly, will these valves be available in six months? I thought that after bidding on jobs for almost forty years, I would be pretty good at this. I never had to factor in tariffs before.

As I write this, I am reminded that we need to follow up on all these proposals. I was not pushing myself to take on large projects while we were swamped with service calls and emergency installs during a colder than normal heating season. I suspect most of these customers will want to move forward with the work now that Spring is here. I now have to wrestle with the added cost for materials. Our labor and overhead is not getting cheaper either.

On one hand, we have already visited the site, taken notes, taken photos, met the client, and we are somewhat familiar with the site. We submitted a written proposal after spending the time to get pricing on materials and calculating the labor and other costs. I certainly do not want to give up on these jobs. However, the customer has waited months now. Maybe they went with someone else (I am certain five did not), maybe they will do nothing, maybe they don’t have the funds available, or something else. On the other hand, I do not want these potential customers to think I am taking advantage of them by adding five or ten percent to the total cost of the project.

In the end, I think I will call all these potential customers and feel them out before re-writing ten proposals with up-to-date numbers.