Paint Shortage Impact: Moves Made by Suppliers
In our recent discussions on the ongoing paint shortage, we evaluated how industry-leading paint manufacturers like Sherwin-Williams have made changes to their production due to difficulties in obtaining raw materials needed for specific paints. Eliminating low-margin, low-demand products and consolidating product SKUs helped the company combat the financial effects of supply chain shortages.
However, Sherwin-Williams also announced another key component to the company’s plans for positioning itself to better serve its customers: On September 28, 2021, Sherwin-Williams signed an agreement to acquire Specialty Polymers, Inc. — a leading manufacturer and developer of primarily water-based polymers used in architectural and industrial coatings. The transaction is expected to close by the end of the year.
Sherwin-Williams Acquires Paint Provider
Specialty Polymers, Inc. closed out 2020 with a resounding $112 million for the year, including sales made to Sherwin-Williams as a manufacturer of proprietary polymers. Operating out of Woodburn, OR and Chester, SC, the company will add to Sherwin-Williams’ existing internal resin manufacturing capabilities, according to chairman, president, and CEO of Sherwin-Williams, John G. Morikis.
“In addition to Specialty Polymers’ significant current capacity, we see the opportunity to add millions of pounds of additional capacity to its footprint in the near term with relatively minimal investment,” explains Morikis.
With this additional capacity, Sherwin-Williams will be able to better serve increasing demand from its customers while expanding Specialty Polymers’ ability to serve its external customers as well.
Other Strategic Acquisitions in the Paint Industry
In a similar move to expand its ability to meet consumer demand, PPG — a leading supplier of paints, coatings, and specialty materials based in the U.S. — acquired Versa Flex in January 2021. Versa Flex is a manufacturer of polyurethane, epoxy, and polyurea coatings for waste industrial applications, water infrastructure, transportation infrastructure, and flooring. Through this acquisition, PPG hopes to further broaden its existing product line.
Satisfying Commercial Painting Demand with A&K Painting
As we continue to monitor the ongoing paint shortage, A&K Painting Company is committed to helping facility managers navigate and plan for their commercial painting needs given the current industry climate.
We encourage all of our valued customers to plan early so they can take advantage of existing paint supplies. With more strategic partnerships forming between paint manufacturers and providers, our team will be able to help you better understand your options to ensure your project is completed as expected.
