Companies in the United States Warn Ida Latest Supply Chain Hit
Ida is the latest supply chain hit in the United States, according to the companies in the United States. Hurricane Ida’s power outages are compounding raw material shortages, prompting new warnings from the major corporations in the United States on Wednesday, claiming that supply chain issues may hinder sales.
Sherwin-Williams lowered their third-quarter sales prediction due to Hurricane Ida after expecting a recovery from supply issues caused by the COVID-19 epidemic.According to Chief Executive John Morikis, the companies are still seeing significant demand. However, ongoing and industry-wide raw material availability concerns have not improved as expected, limiting the capacity to meet the high demand fully.
Morikis said the business would impose a “4% fee” in its Americas division to offset increasing raw material, shipping, and labour expenses. On Tuesday, Sherwin-Williams’ statement echoed PPG’s warning when the paint and coatings business lowered its third-quarter projection, predicting sales would fall between USD 225 million and USD 275 million short of expectations.
PPG blamed “growing commodity supply interruptions” and said it was still assessing “the entire impact of Hurricane Ida, which could incur additional supply chain repercussions.” The remarks demonstrate how the hurricane, which caused significant outages at critical Gulf Coast petrochemical plants, has contributed to the constraints on supply networks already strained by pandemic-related disruptions, resulting in higher pricing.
PPG also stated that it had adopted price hikes to counter rising expenses and that it is “looking for additional increases.” Meanwhile, homebuilder PulteGroup warned on Wednesday that supply chain issues and shortages of essential building materials would cause some closures to be delayed.
The CEO of the PulteGroup, Ryan Marshall, said that despite the trade partners’ remarkable efforts, the supply chain challenges that have plagued the sector throughout the epidemic have worsened in the second half of the year. The firm continues to collaborate closely with its suppliers, but shortages of a range of building supplies, along with rising production volumes across the homebuilding industry, are having a direct impact on the capacity to close homes to the quality standards for the rest of 2021.
Low mortgage rates have spurred demand for homes across the country, driving up prices and decreasing supply, which was already limited due to a labour shortage.