You might be wrong if you think the global supply chain disruptions will only affect your receipt at the grocery shop or your ability get the latest Apple product. If you need the color blue for your home renovation or home improvement projects, there is a severe supply chain crisis in the paint industry.
Bloomberg reported Wednesday that AkzoNobel Paint, Europe's largest paint manufacturer, said it was running out materials to create certain shades of blue. Thierry Vanlancker, CEO of AkzoNobel, explained to Bloomberg that the problem was due to a lack of a basic color tint which is very difficult to find.
Its creating complete chaos, Vanlancker said.
AzkoNobel's problems don't end there. Bloomberg reported that the manufacturer has been having difficulty getting metal cans for its paint, as it cannot get the tinplate necessary to make them. Because it cannot make the paint on-site, it has had to ship empty metal containers across countries.
AzkoNobel also stated that it cannot fulfill orders for external wall paints because of force majeure. This refers to natural or unavoidable disasters that prevent companies fulfilling their obligations. It explains that the additive required to waterproof these paints is unavailable.
Vanlancker stated that the company's business was being affected by extraordinary raw material costs and disruptions in supply chains during a Wednesday media release. Vanlancker's statement was similar to one made by Sherwin Williams at the end September. This stated that rising prices for raw materials like paint and steel used to make paint cans had impacted the companys business.
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Sherwin Williams said that the suppliers were also affected by Hurricane Ida and the Texas winterstorm earlier in the year.
AzkoNobel CEO, however, warned that the crunch in the paint industry was not over.
Vanlancker stated in a statement that the headwinds will likely be with us through 2022 as we have already mentioned.
Paint prices have risen in certain markets due to disruptions in the supply chain and increased costs of materials. According to the Financial Times, Akzo Nobels prices rose 6% in 2021. They are expected to rise by 5-6% by year's end. Prices have also been increased by Sherwin Williams.