Update: $20M in Order Capacity in Tulsa before surcharge takes effect.

| Apr 2025

Over the past few weeks, we have shared updates about a 6% surcharge. Beginning 5:00pm (CT) Wednesday, March 12th, the surcharge went into effect for product models manufactured in Longview and we communicated that we'd keep you updated with any changes for products in Tulsa.

As of today, March 17th, we have $20M in order capacity in Tulsa before we will implement the surcharge for Tulsa products: RN, RQ, and RZ (all cabinet sizes for each model).

The following was previously communicated on March 4:

UPDATE to "AAON Implementing 6% Surcharge"
[Original email, sent on Feb. 28 is also shown below for reference]

Effective immediately, we are implementing the following policies for all new and revised orders:

  • We are only accepting orders with want dates per our lead times and shipped and invoiced accordingly. Orders submitted with a “requested extended ship date” shall be subject to pricing modification including price increases or surcharges that are in effect at the “equivalent order entry date”. The “equivalent order entry date” shall be calculated as the “requested extended ship date” minus the applicable lead time at that point in time.
  • We need to limit the total volume of orders placed without the surcharge. Beyond which a surcharge will apply even if placed in March.
  • We must do this to manage the transition in cost levels of components and materials, before and after the financial impacts noted below. 
We will communicate further as we approach such a limit so you are aware when a surcharge will be effective. It is anticipated that this date will be prior to April 1, 2025 based on projected order volumes.

 

Original communication on February 28th:


Effective April 1, 2025 (UPDATE: Date in March TBD), we will implement a 6% surcharge on all AAON equipment.

This is due to tariffs recently announced, and anticipated resulting impacts to macro-economics, supply-chain cost and availability, and market pricing of materials regardless of country of origin.

As you know, this is a fluid situation and therefore as events and repercussions unfold it is likely that we will need to adjust surcharge amounts up or down.

We intend to honor current price levels for orders received by Monday, March 31, 2025, at noon CST (UPDATE: Date in March TBD). All orders received after this date and time must include the surcharge.