The current raw materials shortage, in place long before COVID-19, has strained global supply chains beyond their limits. This impacts the way your autobody products are packaged & when they’re delivered. Here’s why & what to expect.
As CBT Automotive Network noted in June, “with 80 percent of the world’s auto supply chain connected to China… production shortfalls resulting from supply chain disruptions in China will impact global” manufacturers.
With more than 100 automotive suppliers based in China, and vendors struggling to meet demand, to say the past year has seen a lot of challenges is an understatement.
Plastic Shortages
New CDC guidelines for reopening businesses and schools has driven high demand for transparent barriers that help protect against coronavirus transmission.
However, thanks to these same regulations, the demand for transparent plastic has sent shockwaves through the supply chain.
This week, EIN Presswire reported that “manufacturers… have been facing delivery slowdowns in receiving raw material supplies of professional-quality transparent acrylic plastics (including the brand name Lexan), PMMA plastics (such as the brand name Plexiglas), as well as sheets of other transparent polymers, including polycarbonate (PC) and polyethylene terephthalate-glycol (PET-G).”
Last month, CRC Line LLC, an Autobody Source vendor, noted that “our “New Normal” is anything but “Normal”. Within the past 90 days raw material prices have increased drastically which is unprecedented, except for natural disasters or major output interruptions. If there is any good news, from a competitive standpoint, no one is immune from these raw material increases. We are all in the same boat in uncharted waters.”
A similar impact is being seen across other sectors, including metals and resins.
Why It Matters
In July, industrial cleaning products manufacturer SC Johnson Professional noted it has seen rising freight, distribution, and key ingredient costs as it has worked to meet extraordinary demand for hygiene and disinfection products.
And this week, Malco Products, Inc., manufacturer of Presta Products, announced an expected change in its traditional plastic packaging.
“We are continuing to face shortages of some of our traditional packaging. In order to continue our manufacturing, we have had to adapt to what is available. The bottle and cap manufacturers are having a hard time keeping up with demand, especially for non-essential related items,” said Marketing Manager Jason Yard.
“Please note in the coming weeks, you may see white caps on gallon bottles that usually have black caps on them. There are no performance or compatibility issues. This is a temporary situation, and we will transition back as soon as possible.”
