A supply shortage of epoxy, polyester and vinyl ester resins, caused by U.S. winter storms and a variety of factors, continues to make headlines and affect the composites industry. As reported by Gardner Intelligence chief economist Michael Guckes in his latest Composites Fabricating Index column, supply chain difficulties continue to restrict production.
What's causing the delays?
One survey question asked respondents what suppliers are citing as reasons for supply disruptions: 55% of respondents reported shipping delays not related to weather; 48% reported unusually high demand; 35% reported inclement weather and winter storms; the remaining gave other responses.
Impact on fabricators
More than 54% of survey respondents reported that they are moderately or extremely concerned about ways the supply chain disruption may affect their operations. How have fabricators been able to respond? More than 64% have been communicating with customers about potential delays; 41% reported seeking the same supplies from other suppliers; and 38% reported using alternative materials. Smaller percentages reported reduced shifts or layoffs and furloughs.
Greg McLaughlin, composites manager at Sea Force Center Consoles (Palmetto, Florida), reports: "Resin distributors are rationing resin deliveries, with large-volume builders first in line. We're hearing the industry could face a four- to six-week delay in resin products due to the Texas freeze from damages related to processing plants' piping and fittings."
Faced with shortages on some resins and high prices on the resins that are available, boatbuilders and other fabricators are having to make decisions to use alternative resins for certain products. "The trickle-down effect of the Texas freeze has just started, and the bottom line is that boat manufacturers will be forced to make changes to fabrications, bill of material pricing, lead times and quality assurances, all of which will get passed down to the buyer."
Phil Locker, president of Competition Composites (Arnprior, Canada), adds: "We have production contracts where we were counting on ongoing supply of resin, and are now being told by resin distributors that it could be a month or more before we can get more in. Polyester, vinyl ester, gelcoat, epoxy — they're all being impacted. As it trickles down, I'll be unable to fulfill my own production contracts."
Returning to normal
Of respondents to the CW/Gardner Intelligence survey, 27% said they expect the supply chain situation to return to normal more than 16 weeks from now, and 41% said they did not know.