Raw but Real
How the Raw Materials Shortage is Impacting Independent Paint Retailers
As chemical companies restart the refineries, which were frozen closed by the storms in Texas, paint manufacturers continue to experience shortages of raw materials, and therefore finished goods.
An unprecedented number of raw material suppliers are seeking contractual relief and have declared force majeure. As a result, suppliers are using an allocation method to distribute raw materials. I’ve spoken with different paint companies around the country and all share that they are experiencing reductions in raw material supplies between 50-70%.
The Coatings Alliance realizes how challenging shortages are for our C2 Paint dealers. These events are out of anyone’s control, but we will continue to do all we can to mitigate risk for them.
As a retailer, there are some actions to help you manage this unprecedented shortage:
Practice Patience: Recognize that this event is industry-wide. All retailers and manufacturers are feeling this same pain with you. I was speaking to my father the other day, and he said that in his over 50 years of experience, he has never seen a raw materials shortage like this. So, this is a rare, historical event that we certainly don’t want to see again!
Plan Ahead: It will be about 4-6 weeks for raw materials to loosen up, plus additional time for production, so you will likely have to plan ahead to overcome unstable supply and rising prices. Try to stretch your inventory and consider adjustment of your retail pricing strategy.
Communicate: Proactively inform your customers of the situation. Utilize email blasts, store signage, and your website to share your message. Additionally, dealers may want to prep their counter staff to talk about this situation with customers.
Please feel free to reach out if you have further questions. With the vaccines rolling out and retail predictions looking stronger, we look forward to an uptick this spring!
Stay safe. Stay healthy.
Tom Hill, President, TCA + C2 Paint