skip to main content

Suppliers Seek Price Increases from OEMs to Offset Increased Costs

Suppliers Seek Price Increases from OEMs to Offset Increased Costs

Suppliers have been battling severe inflationary pressure, despite some marginal improvements and are beginning to realize that a one-time price increase will have little to no benefit if this inflation rate continues. Suppliers need to adjust their contracts to include future price increases across a variety of areas, beyond just the major commodities. Without a shift in the way these contracts are drawn up, suppliers’ balance sheets will continue to suffer.

Suppliers look to OEMs for relief

In light of record-setting inflation, suppliers are beginning to pass price increases on to OEMs to offset the increased costs of materials. Our manufacturing specialists have been providing third party support in the form of material cost increase recovery projects for automotive suppliers. In the cases of any negotiations, OEMs are requiring proof of vendor price increases, and have agreed to allow third party “audits” to validate this information.




Please complete this form to hear from one of our experienced construction professionals

Hide Firm Disclaimer


UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.