Supply chain issues hit Sioux Falls paint businesses

June 7, 2021

A perfect storm of supply chain issues is hitting the house paint industry.

First, there’s higher demand. During the pandemic, there were more DIY projects, and simultaneously construction picked up.

Then, in February, bitter cold temperatures hit Texas. The state produces many of the resins that serve as raw materials for house paints, and when the cold temperatures hit, the facilities that produce those resins were affected.

“Right now, the biggest issue is we are just juggling what we can produce based on the raw materials that are currently available,” said Matt Ferring, director of marketing and store operations for Diamond Vogel.

None of this means the average homeowner should start rethinking paint projects, Ferring said.

Diamond Vogel

The stress is higher up in the supply chain, and customer-facing paint businesses are working hard to have options available, even if they don’t have everything in stock.

“Can I change the sheen? Can I go from an eggshell up to a satin?” said Stuart Norberg, fourth-generation owner of Norberg Paints. “Well, that’s not that big of a deal.”

Norberg isn’t too worried about supply chain issues. The impact is felt less on smaller paint businesses than on larger national ones, he said.

In a statement, Sherwin-Williams president and CEO John Morikis noted the supply chain already was challenged before the freeze in Texas because of the pandemic. Then, surging architectural and industry demand added even more pressure.

“Recovery has been significant in recent weeks and is improving but is still far from complete,” he said, adding that the pace of recovery is still uncertain.

At the regional level, Ferring said Diamond Vogel has been lucky in its ability to keep paint in stock for both residential and commercial customers.

“For your average homeowner, they’re really not going to notice any difference by walking into our store locations,” he said. “And if they need 3 to 4 gallons of paint … we’re going to have that for them.”

Homebuilders might begin feeling the pinch, with new single-family home permits in Sioux Falls totaling 412 through May, up from 249 one year ago.

Those large-scale paint customers might have a slightly trickier time, but both Ferring and Norberg said communication is key.

“We try to accommodate as much as possible,” Norberg said.

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Supply chain issues hit Sioux Falls paint businesses

A perfect storm of supply chain issues is hitting the house paint industry.

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