Pavement Marking Paint Price Increases and Sudden Supply Shortages
APC was alerted yesterday and have confirmed with contractors who do pavement striping that there are problems affecting supply and price not only of paint, but also epoxy and thermoplastic. There appear to be several factors at play – resulting in one of those “perfect storm” situations. Factors that we are hearing include:
- Increased demand as a result of the ARRA projects. The suppliers apparently did not anticipate the amount of product that would be needed this spring.
- Production problems at a Dow Chemical plant in Texas that produces one of the ingredients in the manufacture of waterborne paints. The problems at that plant have caused a significant drop in production since January.
- A poor rosin crop in China and increased demand for the product in Asia. Rosin esters are a key component in “alkyd-based” thermoplastic.
APC has contacted PennDOT regarding this issue (actually PennDOT reached out to us first) and the following is happening as a result of this situation:
- PennDOT is currently gathering information.
- There is a DE meeting next week to discuss this situation and options.
- PennDOT will "meet" or conference call with APC next Thursday or Friday to gather industry input.
05.21.10