Commercial Paint Budget Planning for 2023
Plan Ahead for Your Commercial Painting Projects in 2023
With 2022 halfway gone, many facility managers are already planning their budgets for the new year. In this article, A&K Painting evaluates all the different factors that can impact budget planning for commercial painting projects in 2023, including:
- Rising paint and product costs
- Paint shortages and project scheduling
- Minimizing downtime
- Project seasonality and team availability
- How to maximize your commercial painting budget
While 2023 might seem lightyears away for some, many industrial and commercial facility managers are already well underway planning their budgets for the new year. As these individuals begin their financial planning, it’s important for them to factor in the costs and considerations for their facility’s painting needs.
Commercial and industrial painting projects are necessary in order to keep buildings and employees safe while on the job. Not only that, but facility painting also helps maximize efficiency and productivity as employees are more easily able to navigate their surroundings. With so much importance weighing on facility paint upkeep, these projects are ones that financial planners simply can’t afford to skip. To make budgeting for commercial painting easier, A&K Painting put together this helpful guide of all the factors your financial team should consider when looking ahead to 2023.
Rising Paint & Product Costs
With the current rate of inflation at a 40-year high, the cost of paint products is expected to rise with it. The Producer Price Index (PPI) for both exterior and interior architectural coatings increased by 9% in January alone, and year over year, the prices for each of these products have increased by an astounding 30.3% and 21.2%, respectively.
“We expect raw material costs to remain at an elevated level and we are experiencing additional inflation in other cost areas, including logistics and labor,” said CEO of PPG, Michael McGarry, in a press release. “Further selling price increases are being implemented in all of our businesses to mitigate the incremental inflation.”
When planning ahead for 2023, it’s important to keep in mind how inflation will impact the total cost of facility painting projects. Companies like Sherwin-Williams have told customers to expect a 12% increase in pricing, which began on February 1, 2022. PPG, on the other hand, cited a 30% increase in raw materials, causing similar price hikes for their product lines. Be sure to shop around and consult with your commercial painting expert to find comparable products at the most affordable price points.
Paint Shortages & Project Scheduling
In addition to rising inflation, materials shortages have caused many paint products to be eliminated from manufacturers’ catalogues entirely. For instance, Sherwin-Williams made changes to their production, removing low-margin, low-demand products and consolidating product SKUs to help the company combat financial effects and supply chain shortages.
Not only are specific types of paint products being removed, but certain colors are in shorter supply as well. The colors blue and titanium white have been particularly hard to manufacture for companies like Akzo Nobel and Golden Artist as the ingredients for these colors have been more difficult to source.
With shortages in both product and color selection, facility managers will need to be more flexible with project scheduling. These shortages may impact the ability for the project to move forward at the desired time, so keep a clear line of communication open between your team and your industrial painting specialist.
Minimizing Downtime
Some property painting projects may require empty buildings or limited foot traffic while the painting team sets to work. This is standard practice, but is definitely something to consider well in advance.
Planning these projects ahead of time can help minimize downtime and lost profit so your employees can get back to work as quickly and safely as possible. Your commercial painting contractor will be able to work closely with you to determine the time that’s best for scheduling shutdown projects based on your operational objectives.
Project Seasonality & Team Availability
Certain facility painting projects are better suited for specific times of the year. For instance, exterior painting projects are often performed during the spring and summer months due to optimal weather conditions. However, there are more factors than just the weather that determine project seasonality: Painting contractors typically experience an ebb and flow to their schedules based on the times of year when their services are in higher demand.
Discuss your project needs with your industrial painting team to determine when the best time of year would be to schedule service. Make sure to communicate the location of the painting project (i.e. interior vs. exterior) and whether or not these services must be completed by a set deadline in order to remain in compliance with building codes and employee safety guidelines.
How to Maximize Your Commercial Painting Budget
Facilities that involve A&K Painting in their budget planning process are more likely to maximize the budget for their projects. More importantly, they are less likely to lose money on the facility painting services they need to remain operational. If you’re starting the financial planning for your facility in 2023, don’t do it alone: Get the professional assistance you need by partnering with A&K Painting on your facility painting project planning today!
