Machinery prices are likely to rise by up to 15 per cent as manufacturers respond to rising costs of fuel and commodities, Agricultural Engineers Association chief executive Roger Lane-Nott has warned.

The escalating costs of fuel, copper and steel, as well as sterling’s slide against the euro, means horticultural machinery firms will be forced to increase prices.

“It is a volatile situation; rising costs are affecting the industry,” said Lane-Nott. “I would anticipate that machinery [costs will] go up by anywhere between eight and 15 per cent and it is happening right now. Manufacturers are being hit hard with fuel and overhead costs.”

Prices of oil have doubled in the past year, with costs for petrol and diesel seeing significant increases.

Turfmech managing director Austin Jarrett said he had been forced to add a seven per cent surcharge on list prices from 1 July.

“It is a level playing field — everyone is having the same cost issues,” Jarrett said. “We have informed our dealer network, and they say their major suppliers have been warning them about this for some time.”

Jarrett added that he bought engines, gear boxes and bearings from Europe, and the pound’s poor performance against the euro had added an extra 10 to 15 per cent to those prices.

Massey Ferguson vice-president of marketing Declan Hayden said the firm had already implemented two price increases this year, and was expecting to announce another shortly. He added: “We’re facing increased costs, which we’re obliged to pass on.”

Husqvarna marketing manager Caroline Topping said the firm was dealing with the issues by investing in research to manufacture kit that was more fuel-efficient.

Institute of Groundsmanship chief executive Geoff Webb said he would be keen for government intervention on fuel prices. “We’re in for a rough ride and if it means knock-on increases in process for machinery that is going to make the market even harder.”

Lane-Nott added: “People will still buy. Most companies are looking at July to put up prices, so they’re trying to get people to order before then.”