The color blue is the latest victim of the supply chain crisis as paint manufacturers run out of additives
Paul Secker / EyeEm
- Dutch paint maker Akzo Nobel is low on chemicals used to make certain shades of its blue paint.
- The cost of materials needed to make paint increased by over $323 million since last year, according to the manufacturer.
- Other paint companies like Sherwin-Williams are experiencing similar issues and expect shortages to go into 2022.
Manufacturers are running out of supplies needed to make shades of blue paint, the latest good to be affected in the ongoing supply chain crisis.
"To make paint you would need between 50 and 60 ingredients," a spokesperson from Dutch paint maker Akzo Nobel explained in a statement to Insider. "Some additives are difficult to get."
The cost of raw materials and other variables needed to make paint increased by over $323 million compared to 2020, according to the company's third quarter results. Prices of Akzo Nobel have increased by 9% over the past year.
"During the third quarter, as predicted, extraordinary levels of raw material costs and supply disruptions impacted our business," Akzo Nobel's CEO Thierry Vanlancker said."As we've already indicated, the headwinds are likely to be with us going into 2022."
The issue is causing "complete chaos" for the company, Vanlancker said, according to Bloomberg.
The company expects the availability of additives to return to normal in six to nine months, Akzo Nobel told Insider. Akzo Nobel does not see a reason why there would be a lasting supply and demand imbalance.
Other paint manufacturers like Sherwin-Williams are running into similar headwinds as they battle shortages related to the supply chain. Sherwin-Williams told investors in September that the company is facing raw material shortages and that is increasing the overall cost to make paint, according to CNN Business. Sherwin-Williams's CEO John Morikis expects prices to be up for a while, CNN reported.
"The actions we're taking say we're expecting them to be longer term rather than shorter term," Morikis said a call with investors, according to CNN.
The ongoing supply-chain crisis is the result of disruptions caused by the COVID-19 pandemic paired with a boom in demand. Shortages of workers, equipment, raw materials, and space have only exacerbated an already dire situation. Experts predict the disruptions will continue well into 2023, despite efforts from the government to mitigate the issue.
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