Paint Shortage Impact: High-Margin Products
A&K Painting
November 11, 2021

As the global paint shortage continues, we are starting to feel the impacts in specific areas.  The first of which is a switch to producing only high-margin products. In an effort to recover from historic financial lows caused by supply constraints and inflation, Sherwin-Williams — one of the largest paint corporations in the United States — is choosing to shift production of its standard offerings with high-margin products. Ultimately, this will cause the price of commercial painting projects to increase as higher-quality paint will be the only remaining option from the nation’s leading paint manufacturer.

High-Margin Paint Products Dominate the Market

Following Hurricane Ida, Sherwin-Williams’ access to raw materials plummeted, forcing the company to make some difficult decisions when it came to their product line. Rather than using raw materials for products that don’t have high margin, the company is focusing instead on creating paints that will net them the biggest return.

According to John G. Morikis, chairman and CEO of Sherwin-Williams, the company does not expect to see any improvements in raw materials supply or pricing. Additionally, suppliers are reporting that the impacts of Hurricane Ida are more serious than initially thought. With reduced access to the raw materials used in some of the company’s more popular paints, they must rethink their product line, substituting low-quality, low-margin paints with higher-quality, pricier products.

Why High-Margin Products Could Further the Paint Shortage

The switch to high-margin products will lead to reduced access to more affordable paints for commercial projects. As Sherwin-Williams shifts its focus to creating higher quality paints, products that once were easily accessible will become increasingly difficult to obtain. If you have a commercial paint project on the horizon, the best advice we can give is to schedule it sooner than later. Doing so will give your painting contractor the opportunity to locate the paints you need before they disappear altogether. Additionally, you’ll be able to capitalize on lower prices before they inevitably rise again in the near future.

Recent Posts

12 Areas an Industrial Painter Can Work at Your Facility

Managing and maintaining an industrial facility requires facility managers to juggle several moving parts, budget details, and line up experts and professionals who can perform services like painting, equipment maintenance, safety striping, and more. The good news is...

Paint Shortage Impacts: The First Products To Go

As we continue to investigate the on-going shortages in commercial paint supplies caused by the supply chain crisis, we are going to look at one of the specific impacts: The first products to go. Difficulty in obtaining materials for commercial paint projects is...

Swing Stage Painting: Is It Right for Your Project?

What is swing stage painting? If you’ve ever been walking around Uptown Charlotte or other cities with high-rise buildings, you’ve probably seen crews cleaning or painting those buildings using a suspended platform. Those are swing stages, a common tool used in...

The Paint Shortage: What Caused It and What to Expect

Following the trajectory of lumber and steel, paint is the next big product to take a hit due to supply shortages. While COVID-19 is certainly a big cause of the current paint shortage, other factors are also in play. The result is high demand for a product that is in...

Call Now Button