As many individuals and business organizations struggle with the rising cost of goods, there are few sectors that remain unaffected by inflation and supply chain issues. As many HVAC manufacturers have increased prices this year, as well as related sectors, so too have generator manufacturers. As far as the residential generator sector goes, the two main manufactures, Kohler & Generac have begun raising prices on their generator products, namely whole home generators.

On average, generator prices have risen up to 20% YoY.

What is Causing Generators to Rise in Cost?

There are multiple factors causing generator price increases. After careful analysis, we have determined the major factors leading to some price increases.

Volatile Weather Conditions

• Severe weather conditions across the country in 2021 triggered a massive spike in demand for generators, and the trend doesn’t seem to be slowing down. In February 2021, much of the state of Texas experienced a winter storm that caused power outages across the state. More than 4.5 million households and commercial properties were left without power. This resulted in a higher than average demand for generators in Texas as well as across the country as others prepared for potential blackouts in their regions.
• During the February weather events, generators started to become very hard to acquire. In a conversation with CNBC, Aaron Jagdfeld, CEO of generator manufacturer Generac, said, “We can’t make them fast enough, and we’re doing everything we can to supply more product in the market.”

Increases in the Cost of Logistics & Freight

• The cost to ship a single item, truckload, or any other quantity of goods has increased dramatically around the world, beginning in 2020.
• Demand has consistently risen, while the capacity has not met up to the massive spike in demand for goods.
• Prices have been rising across the freight sector, including in parcel delivery, trucking, ocean shipping and warehousing.

Supply Chain Disruptions

• According to Morgan Stanley, “Several factors have hampered supply chains over the last two years, including COVID-related production issues, broad-based labor supply challenges, and the “bullwhip effects” of pull-forward ordering and precautionary inventory buildup.”

Where are Generators Manufactured?

When looking to buy a new generator for your home, it is important to understand where they are manufactured to ensure that you are not unnecessarily paying the extra costs of logistics or supply chain sourcing. If you live in the United States, it is usually best to find a generator made in the US. However, if you live in Europe or Asia, it is typically a better solution to find a product manufactured closer to your own region. This can help reduce the delay in receiving the equipment, as well as reduce the overhead of shipping costs.

Generators Manufactured in the United States of America

When it comes to American manufacturers, two of the most trusted generator brands are Kohler & Generac. Both companies manufacture generators and other products in Wisconsin.

Where Can I Purchase a Home Generator?

Depending on the type of equipment you are looking for, many portable generators can be purchased at local hardware supply stores, while whole home, standby, & backup generators can be purchased from an electrical service provider such as Paschal Air, Plumbing & Electric. As an official Kohler & Generac dealer, we install and service generators in Northwest Arkansas, The River Valley, Central Arkansas, and Missouri. Ready to purchase a generator for your home? Give us a call at 479-900-0784 or schedule your free quote online.