Siemens PLC Price Increase Is Not Groundless! European Industrial Raw Material Prices Will Rise Sharply~

Recently, the news of Siemens PLC price increase has been widely reported. In fact, it has been confirmed that the price has indeed increased, and the increase of some models is as high as 10%. Some media attributed the reason for this price increase to Siemens deliberately creating scarcity in order to improve performance, which caused dealers to accumulate inventory and maintain a wait-and-see attitude. But in fact, this may not be the main reason. Let's analyze it together.

Siemens' orders in the first three quarters fell year-on-year!

Siemens' financial report for the first three quarters of 2024 shows that year-on-year revenue is rising steadily, but year-on-year orders are on a downward trend. Q1 orders reached 22.3 billion euros, down 2% year-on-year; revenue increased 6% year-on-year to 18.4 billion euros. Q2 orders reached 20.5 billion euros, down 13% year-on-year; revenue was 19.2 billion euros, almost flat year-on-year. Q3 orders reached 19.8 billion euros, down 16% year-on-year; revenue increased 5% year-on-year to 18.9 billion euros. Therefore, some media believe that Siemens may have adopted a strategy of not releasing goods and creating market scarcity in order to achieve better performance data in Q4, and it seems to make sense to push up product prices. However, the price of a product actually depends on the two most important factors, market demand and cost.

Siemens WA products have increased in price!

The sudden increase in Siemens PLC prices caught everyone off guard. The different prices in one day are hard to accept, and many agents and users are not very receptive to this price increase, thinking it is artificial and will not last for a few days. But is it really so? On August 20, Siemens WA product price adjustment notice showed that based on market changes, the price of the home appliance Haocai series increased by 5%-8%, and the price of the Ruichen PC series increased by 20%.

European industrial companies expect raw material prices to rise!

In addition, the dynamic changes in market demand and expectations for the future market also have an impact on prices that cannot be ignored. There are signs that market demand is not clear in the last few months of this year, and there is a high probability that it will continue to decline. However, there is another important factor affecting the price of industrial products-cost. According to a survey of nearly 200 executives in relevant regions by consulting firm Inverto, many European industrial companies expect raw material prices to rise, especially plastics and industrial metals such as aluminum and copper. The price of industrial metals will see the largest increase. The current price of industrial metals is far below the peak in early 2022. In addition to rising raw material prices, the adjustment of procurement strategies of many European companies and factors such as high inventory have also greatly increased corporate costs.

Of course, changes in product prices are indeed full of uncertainty. Many factors such as market supply and demand, raw material costs, policies and regulations, and competitive situations are intertwined and jointly affect the trend of product prices. In this case, accurately predicting whether a product will increase in price is indeed a very challenging task, and we will continue to pay attention to the price trend of Siemens PLC.

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Bou L
Sales Specialist
[email protected]
+86-175 5077 6091