Record global demand for commodities has led to sharp increases in the cost base of heavy equipment manufacturers. Consequently, Volvo Construction Equipment last week announced it will raise the price of its machines and components by 5 percent globally.

Restricted supply and burgeoning demand for steel, especially in China, has led to the cost of iron ore rising by more than 70 percent on the worldwide markets, Volvo officials said. To offset some of the impact of these rises, Volvo Construction Equipment will increase the prices of its machines, attachments and parts by 5 percent.

“Manufacturers of heavy construction equipment are being particularly hard hit by the current record prices of commodities, such as steel, oil, iron ore and rubber,” said Scott Hall, executive vice president of Volvo Construction Equipment. “With no sign of commodity prices cooling in the foreseeable future it has become unavoidable that these costs be offset in the form of a price increase.”

The price increase will be made across Volvo Construction Equipment’s entire product range and implemented globally.

Headquartered in Asheville, N.C., Volvo Construction Equipment is an international manufacturer of equipment for construction and related industries.