Kimberly-Clark reported lower earnings for the previous quarter saying that the higher cost of its raw materials are to blame, primarily because of oil. Oil prices have recently spiked, shoving the price well about $100 per barrel, sending shock waves through virtually every industry.
A key ingredient used to make polypropylene polymer has increased in price by 300% in the past two years, spiking the production costs of many medical office building cleaning products. In addition to non-woven disposable products, the cost of gloves has also recently skyrocketed, sending the price of manufacturing many types of gloves into overdrive.
Now that higher prices for materials have begun chipping away at corporate earnings, the company says that it will increase selling prices of a variety of products including those used in medical office building cleaning.
The price move by Kimberly-Clark was not done hastily. The company first analyzed all of its operations looking for ways to cut costs and boost efficiencies while reducing the company’s environmental footprint. Although those measures were briefly effective, the company says that inflationary pressures outside the oil industry compounded the pressure on the company, forcing it to pass on its higher costs.
Before new price structures are implemented, Kimberly-Clark says that it will give its customers advance warning so they can adjust their prices as well. Thus those who use the company’s products for medical office building cleaning will not be caught off guard by a sudden price hike.



