Simpson Manufacturing to Raise Product Prices in January

Industrial customers should prepare for price adjustments as the company attempts to offset a 50% spike in steel costs.

Updated on Oct. 27, 2026 in Economic Indicators

Isometric editorial illustration of a shipping container and stacked steel I-beams in a factory yard. — Simpson Manufacturing will raise product prices in January to counteract a 50% year-over-year increase in raw steel costs. AI Illustration. Upload story photo >

Live Poll

Do you expect the cost of home improvement projects to rise in the coming months?

Simpson Manufacturing plans to raise product prices to combat steel costs that have risen more than 50% year-over-year. The firm disclosed these potential adjustments during its third-quarter earnings report, which showed net sales of $638.13 million.

Why it matters

Steel prices currently sit at a four-year high, pressuring manufacturers to pass costs to customers or absorb significant margin compression. Management has already adjusted its 2026 operating-margin outlook downward to account for these rising inputs.

Simpson Manufacturing reported third-quarter net sales of $638.13 million, a 2.3% increase year-over-year, alongside a 22.1% operating margin. The company expects fourth-quarter margins to drop to the upper 13% range, while its full-year 2026 operating-margin guidance is now 20.0% to 20.5%.

The players

Simpson Manufacturing Co.

A manufacturer that produces structural connectors and fasteners for the construction industry.

The details

To mitigate the impact of steel costs, which have climbed more than 50% in the last year, Simpson Manufacturing is preparing new pricing actions. The firm intends to finalize these adjustments in the coming weeks with an expected implementation date in January 2027. Additionally, the company recognized an $11 million gain from an early October land sale in Stockton, California, to help offset broader operating margin pressures.

Early October 2026: A vacant land sale in Stockton, California, closed.
October 26, 2026: The company held its quarterly earnings call.
Q4 2026: The $11 million gain from the land sale is recognized.
January 2027: Planned effective date for new product pricing.

Market Landscape

The firm’s move to raise prices directly follows the market trend of steel prices reaching their highest level in over four years. This strategy mirrors a broader industry shift where manufacturers are lowering operating margin expectations to account for persistent input volatility.

Operators in the construction and manufacturing sectors should audit their own raw material exposure to steel, as pricing volatility is forcing widespread adjustments. Review your current procurement contracts to determine if you are protected against similar near-term price hikes.

The takeaway

Rising raw material costs are forcing manufacturers to re-evaluate their pricing strategies to maintain margins. Operators should monitor upcoming price notifications from key suppliers, as January is shaping up to be a common window for cost-pass-through adjustments.