Supply Chain Issues for Refinishing Products Due to World Events
It is well known our industry is facing enormous pressure from the continuous price increases on all raw materials. We are seeing unprecedented shortages of raw materials and packaging supplies, as well as a dramatic rise in freight costs which all continue to be occurring globally. Price increases are being pushed on all suppliers and vendors in every direction—and some increases are the highest they have been in history. Unfortunately, these increases continue to rise without much evidence of relief in the near future. NAPCO has tried to absorb these increases as much as possible. However, raw material forecasting for 2022 is showing signs of continued fluctuation in pricing.
Why is there a refinishing product shortage?
The reason there is a refinishing product shortage is a combination of many things, but it's evident that it started with Covid. However the big, unexpected freeze in Texas that caused many factory shutdowns was also a catalyst that the market did not foresee. This caused plants to fall behind on production exacerbate the issues Covid started. When China - in response to rising Covid infection rates - shut everything down for a second time, all production and cargo freight came to a complete halt. All these issues compounded into the challenges we face today as refinishers and business owners.
We are now in a raw material, drum, and cargo container shortage. This is a result of all the cargo crates and drums being piled up at other docks instead of being shipped back to other countries to be reused. The list of complicating factors goes on and on, and most of these are out of our hands as a supplier.
What does this shortage mean for refinishers?
Refinishers need to be prepared. This can mean, among other things, carrying more inventory at any given time. With the materials industry being so volatile right now, one can never be too safe. Building up your inventory will ensure that you will have the materials needed for future jobs, even if the supply chain erodes further. Having additional product on hand could mean a larger up-front investment, but in the long run can protect you from lulls in your production and the loss of overall profit as a small business owner.
When will things get back to normal?
With so many variables in play, its not possible to pinpoint a time when things will return to pre-Covid conditions. NAPCO has absorbed additional costs in the past in hopes things would even out eventually. Now years into the pandemic, we see that the longevity of these problems is beyond what we projected. As we carefully watch the markets, we are starting to see increased lead times and price increases again from numerous vendors, which all beginning in mid-April. The bottom line is, the best way to ride out these challenges is to be prepared.
NAPCO has the Refinishing & Resurfacing Products You Need
NAPCO is a one-stop shop for refinishers, and despite the hurdles we see today, we continue to work our hardest to bring you the materials you need to grow your refinishing business. We carry everything needed for your toolbox—from a sheet of sandpaper to the highest quality spray and PPE equipment on the market. We are committed to making the equipment and products we offer as affordable and accessible as possible. With our equipment, refinishers don’t need multiple sprayers or PPE products, regardless of the job they are doing. Check out NAPCO's refinishing products and let us help you be prepared to be successful no matter what!