Two of the largest US paint makers, Sherwin Williams and PPG Industries, say their third-quarter sales will be hit significantly by raw material shortages. Raw materials such as resins for coatings have been in short supply since freezing weather in Texas in February sidelined the chemical industry.
Producers have been slow to recover and now have to contend with additional events such as Hurricane Ida. PPG says its sales will be $225 million to $275 million lower than it had anticipated at the beginning of the quarter. The company says its sales of paint to the auto industry also have been hit by a shortage of computer chips that automakers need to build cars. Sherwin Williams says raw material shortages crimped sales by 3.5% in the second quarter. It expects third-quarter sales to be lower than expected by a “high-single-digit percentage.” Sherwin-Williams says the raw materials it can get are expensive and thus it has put surcharges on its products.
It's amazing how some chemical producers are being hit by both shortages from the raw material side as well as the customer side (i.e. all automotive suppliers.)