Here's what's getting more expensive
New York (CNN Business)As the global supply chain crisis continues to roil the global economy, the list of impacted industries is growing by the day. The latest: paint.
Sherwin Williams said this week that strong demand for paint isn’t enough to prevent it from having to trim its revenue and profit forecasts.
The company told investors it is facing some of the same raw material shortages dogging other industries, and that is driving up the cost of the supplies it needs to make paint.
“The persistent and industry-wide raw material availability constraints and pricing inflation we have previously reported have worsened, and we do not expect to see improved supply or lower raw material pricing in our fourth quarter as anticipated,” said CEO John Morikis.
The paint maker is responding to the higher raw material costs by raising its prices. But the company doesn’t expect to resume normal production as soon as it had previously hoped.
“Our suppliers are now reporting that the impacts of Hurricane Ida are more severe and will be longer lasting than initially thought,” Morkis said. “Production of several key resins, additives and solvents, expected to resume by late September, has been pushed out.”
Sherwin Williams still plans to move ahead with bringing 50 million gallons of additional capacity online over the next six months. The company also announced that it will buy supplier Specialty Polymers in a deal expected to close before the end of the year.
“While visibility of recovery in the supply chain is limited … we will continue to invest in our strategic growth initiatives,” Morikis said.
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