Why do we have a paint shortage?
Why do we have a paint shortage in 2021?
There is a shortage of both paint and workers and the shortage of quality labor has hit small businesses in particular.
Why do we have a paint shortage?
From a freeze in Texas to a fire in China , add in a pandemic and a labor shortage of plant workers and drivers we are seeing a huge paint shortage which is effecting our painting industry in many ways.
The paint shortage was exacerbated by this year’s major winter storm.
Paint supply chain Sherwin-Williams was already suffering as a result of the COVID pandemic. However, the February winter storm that hit Texas added further constraints to the supply chain. “In an already-challenged supply chain due to COVID-19, the February natural disaster in Texas further impacted the complex petrochemical network causing significant disruptions,”
Texas leads the nation in petroleum refining production, which is necessary in manufacturing paint, according to Business Insider. The winter storm reduced the state’s capacity to refine petroleum, which created a ripple effect for a reduced ability to manufacture nearly all paints.
With an abundance of work and a shortage of paint, this has lead to increased lead times of projects, having to juggle what products are used on projects and frequently changing the types and brands of paints being used.
“If you asked me what paint we will use on your project today for a job a month from now I would have no idea” says Ryan Amato of Amato Painting in Easton, Pa
Many people also understand how important painting can be for their peace of mind and for their homes. Join us as we explore what this means for your home-improvements company or business.
Small businesses are feeling the effects of a paint shortage and labor shortage .
People are not working, where we would typically have an abundance of summer help , we are just not seeing it and as we talk with contractors across the country they are all in the same boat.
Paint companies are expecting their lead times to increase from six weeks to more than three months.
At a time when many custom home builders need paint in five weeks, this means that the small home improvement and construction companies that serve them will be unable to make up the delay in supplies. [Source: The Wall Street Journal Online]
Small businesses will be negatively affected as a result of increased costs and extended delivery delays for products they need for their businesses.
As more small businesses look to services from large painting companies or call in their own contractors to do interior painting, these companies will be forced to change their schedules and prices, pass on the costs to consumers, raise prices for new customers or all three.Source: The Wall Street Journal Online]
According to Wayne Phillips of the National Small Business Association, “It could lead businesses that specialize in these kinds of products into a death spiral that could quickly remove them from the marketplace.
“We are planning ahead as best as we can, however we would never order materials months ahead for projects, it just isn’t financially feasible or smart to have a stockpile of paint, especially with clients whose schedules change or changes in scopes of work” . Ryan Amato
Some of the most commonly used paints are out of stock, many primers are no where to be found.
The paint shortages are being felt keenly because demand for the product is increasing as the weather improves, experts say.
It will likely get worse too, because with summer approaching we’re entering into “painting season”.
The summer weather is ideal for painting outdoors, and lots of people have projects planned for the warmer months, so demand for paint is expected to increase.
“We likely will need to take further pricing actions if raw material costs remain at these elevated levels,” said Sherwin-Williams CEO John Morikis during a company earnings call in late April.
Our advice is when you find a painting contractor you connect with, don’t wait long to contract with them. Sign up, get your project on the “schedule” so they can start planning and allocating materials especially if it is a large project. Ryan Amato Painting