Paint prices have risen steadily due to rising raw material prices or shortages during a period of high demand. Shortages of paint and products continue to affect the industry. Paint prices are rising due to the scarcity of raw materials. Labor shortages have created problems, from bringing paint to the market to placing it on the wall once it arrives. There isn't a lot of comforting news about when it will decline.
According to Carolina-based A&K Painting Company, one of the reasons may be that, since products are harder to find, companies focus more on products with high margins. For Backdrop, maintaining the production of its cabinet and door paints proved to be the most difficult, given the necessary inputs. The index was driven by a 25.4% increase in the prices of soft wood and a 9% increase in the prices of interior and exterior paint. If your customers are singing the blues, they need to stop.
According to an article in the Philadelphia Inquirer, the necessary ingredients for blue are lacking in both artistic and architectural painting. However, once again, due to the shortage of paint, we have seen that the drivers who hand out products in paint stores are just people who work behind desks. Back then, there were several factors that caused tension in the paint supply chain, such as the freeze in Texas, which affected resin, a raw material used in paint. Another may be the already mentioned shortage of titanium dioxide, which plays an important role in the production of paint for traffic vehicles. An article published in Bloomberg noted that paint giant Sherwin-Williams, which faced a shortage of raw materials and personnel problems among managers, drivers and field representatives, reported lower than expected profits.
These peaks in demand would already be quite difficult to cope with in the context of COVID, but the harsh winter in Texas is what really disorganized paint production. Hayfield, of Farrow & Ball, points out that the availability of resins has gradually returned paint production to the “pre-pandemic pace”, but broader macroeconomic challenges have prevented any possibility of economic relief. An article published in Real Homes suggests that, while it's not impossible to find blue paint, it's a good idea to let your customers know that they might be on the waiting list to get it. Many consumer-oriented companies have reported delays and losses, and the paint industry is no exception.
For example, PPG notes that its consumers were especially interested in exterior paints, versatile stain-resistant options, and more sustainable paints and with a low VOC content.
