2021 Resin Shortages and Raw Material Increases

As indicated on our website, a number of our products have incurred price increases. To be completely transparent with our customers, and in order to identify why this is, we feel it's important for our customers to understand the current issues that the US plastics industry is up against:

Raw Materials Shortages

The plastics manufacturing industry is facing an unprecedented resin and raw materials shortage not seen in decades. Since March 18th, 2021, PVC resin costs have increased by over 30%. This does not include other raw material additives involved in creating our PVC formulations, all which have gone up by unforeseen amounts.

Much of the situation is being credited the devastating ice storm that hit Texas in February of 2021, but is also attributed to the COVID-19 pandemic:

Texas Ice Storm Impact

Most raw material plants are located in the Texas area or have materials linked to their production from the state. This attributed to shutdowns and inventory losses that continue to be felt on a global scale. The impact is limited availability and in-turn, driven up costs, substantially.

COVID-19 Pandemic Impacts

The COVID-19 pandemic over-utilized much of the existing inventories, and incapacitated the supply chain. Demand was at an all time high during the pandemic and resin processors were distributing much of their existing materials, all while having lower inventory replenishment with reduced workforce at most resin plants. Raw materials suppliers are working at an increased pace to correct their shortages and get back to previous inventory levels.

Future Corrections into 2021

We do expect there to be market reductions in relation to the current escalations in the near future. Regardless, FORMUFIT’s main priority is to continue to secure material to produce product which will, however, come at a cost for the foreseeable future. We will continue to maintain ourselves as lowest distribution channel of domestically sourced Furniture/Structural Grade PVC pipe and fittings in the United States.

We apologize for this situation, and will continue to do all we can to serve our customers given the current conditions. Please feel free to reach out to us directly in regards to any questions or concerns at info@formufit.com.

Best Regards,
Joe

Joseph Cushing
President & CEO
FORMUFIT