The resin shortage is expected to increase the cost of household items by 15%, according to a report from AlixPartners. Resins are used worldwide in everyday plastic household products such as diapers, garbage bags, beverage bottles, containers for personal care products and detergents, and plumbing pipes. , medical devices and toys.
“American consumers are already feeling pressure on their household budgets, and it may get worse before it gets better,” said Marc Iampieri, general manager of operations and transportation and logistics practices at AlixPartners. “Frankly, this has the potential to become a hidden version of the semiconductor crisis for many of the same reasons. Growing demand for plastic products combined with recent disruptions in supply have resulted in complications regarding quality, cost and timeliness of delivery. Since these products often have low profit margins, industry players have no choice but to pass the higher costs on to consumers. The top priority for companies today is to mitigate the risk and impact of supply chain disruptions, which includes creating greater flexibility in production, rebalancing the chain procurement and overhaul of delivery and distribution. “
- Resin processors say they will have to reduce their operations and minimize future investments. On the net, supply is expected to be limited at high prices for the foreseeable future.