What To Know
- Further price increases are now on the way for many other consumer products due to unprecedented shortages and disruption in the supply chain for the fossil fuel-based resin market.
- consumers are already feeling the pinch in their household budgets, and it is likely to get worse before it gets better,” said Marc Iampieri, Managing Director in the Operations and Transportation &.
AlixPartners, the global consulting firm, announced today its forecast regarding how much the ongoing resin shortage could cost U.S.-based producers of plastic products and consumers of all things plastic.
According to AlixPartners, across the U.S. economy, prices are rising for many products, from building materials and appliances to food and computer chips. Further price increases are now on the way for many other consumer products due to unprecedented shortages and disruption in the supply chain for the fossil fuel-based resin market. Resins are used worldwide in everyday household plastic products such as diapers, trash bags, beverage bottles, containers for personal care products and detergents, as well as plumbing pipes, medical devices, and toys.
“U.S. consumers are already feeling the pinch in their household budgets, and it is likely to get worse before it gets better,” said Marc Iampieri, Managing Director in the Operations and Transportation & Logistics practices at AlixPartners. “Frankly, this has potential to become a hidden version of the semiconductor crisis for many of the same reasons. Rising demand for plastic products combined with recent supply disruptions has led to complications around quality, cost, and timeliness of delivery. Because these products often have low profit margins, those in the industry have no choice but to pass the higher costs onto consumers. The top priority for companies right now is to mitigate the risk and impact of supply chain disruption, which include building more flexibility into production, rebalancing the supply chain, and rethinking delivery and distribution.” More here.