With commercial water heater industry volume expected to rise 10% in 2021 fueled by pandemic reopenings, A.O. Smith Corp. (AOS), a water heater, tank, and boiler manufacturer, says it has hiked prices multiple times to combat inflation. In its latest 10-Q, A.O. Smith revealed the next price increase goes into effect November 15th:

“When fully realized at the end of 2021, the five announced inflation-related price increases on water heaters compound to approximately 50 percent.”

Expect margin pressure into the new year as A.O. Smith hints at an even longer than normal lag with regard to chasing price:

“Historically, there has been a lag in our ability to recover increased material costs from customers, and that lag, particularly for the price increases implemented in 2021, could negatively impact our profitability.”