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Industry Advisory

Quarter 2
2024

Although news from our European and Asian counterparts send messages of rising prices on overseas silicones and polyurethane raw materials and packaging, North American increases have been minimal compared to the drastic increases of post-Covid supply chain constraints of 2021/22. Since then, the sealants and adhesives industry has been relatively calm regarding the pricing and availability of raw materials, packaging items, transportation costs, and labor.  Costs on most materials have subsided slightly since 2022 but remain higher than pre-Covid. Importantly, the lead times for a majority of materials remain at 6 to 8 weeks!

acquiring silicone and caulk tubes is a considerable challenge for caulk manufacturers

Everkem has seen increases in paper-board-related items such as boxes and fiber quart tubes and raw materials such as latex and calcium carbonate this year. And like businesses everywhere, we have also experienced a rise in freight, energy, and labor costs. Although the majority of materials are relatively accessible, acquiring silicone and caulk tubes is a considerable challenge for caulk manufacturers.

Silicone materials are historically volatile, and the major North American supplier continues to struggle with labor shortages and manufacturing constraints that have limited supply and escalated lead times since November 2023. Companies that buy or sell silicones are used to dealing with the ups and downs of supply, but caulk tubes? YES, caulk tubes. . . the empty ones. With only two plastic caulk tube manufacturers currently operating in North America, the industry anxiously awaits orders for preprinted empty caulk tubes, which are now in allocation from one vendor and over 20 weeks out from the other.

As the seasonal spring and summer demand chases the pace of the construction industry, sealant and adhesive manufacturers are hurrying to get orders on the books for caulk tubes to keep our machines running, our team working, and our orders shipping.

Despite our efforts to offer alternative packaging items such as squeeze tubes, sausage tubes, quart tubes, cups and pails, the absence of caulk tubes significantly hampers our operations. It is like trying to serve a cold draft beer without a glass. The industry’s constraints make it very difficult to meet our customers’ needs and operate efficiently as back orders and lead times continue to mount.

As we navigate the uncertainties of the summer months and the evolving supply chain, we are committed to keeping you updated. Please bear in mind the pending lead times to ensure on-time delivery as you plan your company’s projects or stock orders. Don’t hesitate to contact your Everkem sales representative with any questions, feedback, or additional requests. Thank you for investing your trust in us!

Although news from our European and Asian counterparts send messages of rising prices on overseas silicones and polyurethane raw materials and packaging, North American increases have been minimal compared to the drastic increases of post-Covid supply chain constraints of 2021/22. Since then, the sealants and adhesives industry has been relatively calm regarding the pricing and availability of raw materials, packaging items, transportation costs, and labor.  Costs on most materials have subsided slightly since 2022 but remain higher than pre-Covid. Importantly, the lead times for a majority of materials remain at 6 to 8 weeks!

acquiring silicone and caulk tubes is a considerable challenge for caulk manufacturers

Everkem has seen increases in paper-board-related items such as boxes and fiber quart tubes and raw materials such as latex and calcium carbonate this year. And like businesses everywhere, we have also experienced a rise in freight, energy, and labor costs. Although the majority of materials are relatively accessible, acquiring silicone and caulk tubes is a considerable challenge for caulk manufacturers.

Silicone materials are historically volatile, and the major North American supplier continues to struggle with labor shortages and manufacturing constraints that have limited supply and escalated lead times since November 2023. Companies that buy or sell silicones are used to dealing with the ups and downs of supply, but caulk tubes? YES, caulk tubes. . . the empty ones. With only two plastic caulk tube manufacturers currently operating in North America, the industry anxiously awaits orders for preprinted empty caulk tubes, which are now in allocation from one vendor and over 20 weeks out from the other.

As the seasonal spring and summer demand chases the pace of the construction industry, sealant and adhesive manufacturers are hurrying to get orders on the books for caulk tubes to keep our machines running, our team working, and our orders shipping.

Despite our efforts to offer alternative packaging items such as squeeze tubes, sausage tubes, quart tubes, cups and pails, the absence of caulk tubes significantly hampers our operations. It is like trying to serve a cold draft beer without a glass. The industry’s constraints make it very difficult to meet our customers’ needs and operate efficiently as back orders and lead times continue to mount.

As we navigate the uncertainties of the summer months and the evolving supply chain, we are committed to keeping you updated. Please bear in mind the pending lead times to ensure on-time delivery as you plan your company’s projects or stock orders. Don’t hesitate to contact your Everkem sales representative with any questions, feedback, or additional requests. Thank you for investing your trust in us!