PPG has announced global paint price increases of up to 20% across all product lines, with other leading paint companies expected to follow suit.
This comes after an average industry-wide rise in paint prices in the last four years of about 30%.
PPG has attributed the latest increases to volatility in the petrochemical, energy and transportation markets, resulting in higher costs for raw materials, energy, logistics and packaging. It has further warned that certain product categories could face higher price adjustments and not ruled out additional price increases in the future.
Tim Knavish, PPG chairman and chief executive officer, said: “Our top priority remains supporting our customers with consistent quality, dependable supply and technical expertise, even as market conditions remain highly dynamic.
“This pricing action allows us to ensure availability of supply as we navigate unexpected and increased cost pressures.”
Further increases
Meanwhile, BASF has confirmed it will increase prices by seven per cent on 1 May in direct response to the cost implications of rising energy, transport and manufacturing prices, while 3M is adding a further six per cent on top of April’s annual increase across all products and divisions.
Lee Roan, strategic accounts and RepairStack sales leader, 3M automotive aftermarket division, said: “This is a six per cent short-term fuel surcharge on top of the annual increase, which as a weighted average was 2.3% across the portfolio of products that a bodyshop would buy.
“I’m hearing that other manufacturers are making a similar increase because we’re all sitting on an oil-based supply chain and product portfolio. But the way we’ve implemented this surcharge means we will be able to roll it back really quickly when things calm down. That said, it could be three to six months before we’ve got stabilisation in fuel prices.”
It is understood that Axalta is not planning to raise prices, although it has declined to confirm this, while AkzoNobel was also approached for comment.
Estimating systems
Meanwhile, the NBRA has warned that bodyshops could be hit hardest if estimating systems are not immediately updated in line with any price increases.
Executive director Martyn Rowley said: “The NBRA is disappointed that paint companies have chosen to implement further price increases. However, the more pressing concern is ensuring these increases are reflected in estimating systems without delay.
“Previous price rises have been followed by significant lag times, often two months or more, before updates were applied, leaving repairers exposed in the interim.”
