Across the US economy, prices are rising for many products – from building materials and household appliances to food and computer chips. Resin supplies in particular have seen a significant uptick, largely due to increasing demand, transportation issues, inclement weather events, and other challenges faced by many businesses over the past year.
Further price increases are now on the way for many other consumer products because of unprecedented shortages and disruptions in the fossil-fuel-based resin market. Resins are used worldwide in everyday products such as plumbing pipes, medical devices, toys, household-product packaging, and water bottles.
Manufacturers typically have plans to address fluctuating costs, but few of them are prepared to deal with the inability to purchase enough resin to keep their processes running. AlixPartners believes that the price increases may cause an up to 15% price inflation for a number of household products in the coming months.
Companies cannot control the market forces at play, but they can do several things to mitigate the risk and impact of supply chain disruption. Download our report to learn about AlixPartners’ recommended four-step approach to better manage structural changes in the supply chain.