Paintmakers are running out of the color blue in latest supply crunch

“There is one basic color tint that is extremely difficult to get,” Chief Executive Officer Thierry Vanlancker said in an interview Wednesday after publishing third-quarter earnings. “It’s creating complete chaos.”

In addition to the bluish hue, Akzo Nobel is having trouble sourcing the tinplate used to make metal cans, forcing the Amsterdam-based company to ship empty pots from one country to another for filling. It also called a force majeure on deliveries of some exterior wall paints because an additive needed to make them waterproof is unavailable.

The supply-chain snarls that have sown disarray across industries are raising prices and creating shortages of some basic household products. Paintmakers, which typically rely on hundreds of additives and chemicals, have warned for months of higher costs and logistical issues.

Akzo Nobel earlier Wednesday said the spiraling costs and materials shortages will last through the middle of next year.

While demand is coming back to 2019 levels as some countries appear to be getting past the worst of the pandemic, the installed capacity for making raw materials hasn’t changed, Vanlancker said.

“There isn’t really a reason why this big panic is happening,” the CEO said. “This should be a transient situation that could take six to nine months to get back to normal, but there is no fundamental reason why there would be a lasting supply and demand imbalance.”

More must-read business news and analysis from Coins2Day:

• China isn’t the only economy decoupling from the U.S.
• What you need to know about the Delta Plus COVID variant and the danger it poses
• Mortgage rates may spike 30% next year, according to a new forecast
• How high Goldman Sachs predicts home prices will go in 2022
• 4 things to know about stimulus checks in 2022 and beyond