Think your supply costs are finally settling? Think again! Word on the street is there's another price increase coming...
11 October, 2021
As many contractors have discovered, Sherwin-Williams recently imposed a four percent surcharge on the majority of its products through the end of 2021 to cope with rising prices and raw materials shortages. Now the company has announced further price hikes, again due to difficulty in obtaining the raw materials. Some of this is a result of Hurricane Ida, which hit the Gulf Coast on August 30, and severely impacted or shut down the production capacity of the company’s suppliers in that area. Some raw materials costs, including resins, polymers, and even the steel used for making cans, have increased nearly 20% and are expected to rise even higher.
According to an article in the Cleveland Business News, in September the company lowered its sales and earnings expectations twice due to these shortages as well as to account for inflation. SW sees a strong demand for coatings but lowered its third quarter sales guidance to “flat to down slightly” as compared to Q3 2020.
On the plus side, the company reported it was keeping its manufacturing facilities fully staffed to it could meet the demand for coatings as soon as the shortages subsided, and President John Morikis noted that there were plans in place to increase production capacity of architectural coatings by 50 million gallons over the next six months.
The company’s recent acquisition of Specialty Polymers Inc. in Woodburn, Oregon, announced in late September, is part of the effort to ramp up production; and Morikis stated that the company continues to have the ability to produce once it can procure the materials needed. Sherwin-Williams announced a seven percent price increase, prior to the four percent surcharge, in August.
Other paint companies have also announced price hikes: PPG raised prices at least twice this year to compensate for higher costs in everything from materials to transportation to wage increases. Company President Michael McGarry stated that he didn’t see this trend abating anytime soon. The price hikes across the board are the steepest in the industry in quite some time.
Experts say COVID-19, a storm in Texas, increased demand, and industry mismanagement are playing a role in higher prices and coatings shortages. Learn more about the current state of paint past the link...
Paint Price Hikes Continue
I have no intention of belittling Sherwin Williams or PPG, because fact is some contractors have stayed afloat without either of them. I honestly have had good business relationships with both over the years. However, we painting contractors here in Central Indiana know full well about Sherwin-Williams' multiple price hikes and no paint available "on the shelves". PPG is not much better. If it wasn't for Benjamin Moore Paints in Indianapolis and BM professional merchandise salesman Greg Bond, a lot of production would have been lost this year. An associate just painted a large home requiring 160+ gallons of the best grade of exterior paint, he immediately bought it from Benjamin Moore with knowledge that more was available, "on the shelves"! Facts are facts and fantasy is fantasy. This painter has been in the trade too long to allow price gouging for products that are not even on the shelf and it is impossible to paint with "excuses" and "promises".
Price Hikes Continue
Yesterday I received yet another encouraging letter from Mr. Josh Bagshaw, Sherwin-Williams, President & General Manager, Midwestern Division. Mr. Bagshaw thanked me for for my continued trust in S&W and assured me that S&W remains focused on providing me with the products and services my company needs. However, Mr. Bagshaw went on to say that in order to HELP ME, Sherwin-Williams is EXTENDING THE 4% SURCHARGE THROUGH JANUARY 31, 2022. Mr. Bagshaw's "good news" is that on February 1st, 2022 the surcharge will be discontinued AT WHICH TIME S&W WILL BEGIN IMPLEMENTING ANOTHER PRICE INCREASE ON ALL THEIR PRODUCTS! (Whether on the shelf or not!) Let me get this straight..... he says that S&W is giving me advance notice so I can gig my customers the way S&W is gigging me and other contractors. I sure appreciate the kind thoughts however, Benjamin Moore will work out really well. I did not receive a letter from Benjamin Moore Paints, only paint, decent prices and live service reps. and most of all, no excuses
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