Global Supply Chain Challenges Impacting Color Pigments Value Chain

Global supply chain challenges impacting color pigments value chain

By David Wawer, Executive Director, Color Pigments Manufacturers Association

Article originally appears in SOCMA's Specialty Insights, 5th Edition, Standard Issue, page 30

During the past 18 months, the color pigments industry, like many other manufacturing sectors, has faced challenges with raw materials supply, trans-ocean shipping delays and increased costs, and changes in customer markets. The global pandemic has also led to evolutions in consumer demands for goods and services that incorporate color.

Raw material disruptions have varied from product to product and country to country, yet color pigments manufacturers and downstream processors (dispersions & preparations, plastics masterbatch) have continued to weather through economic transitions by adopting innovative approaches to serve color pigments industry customers across the globe.

Global shipping challenges continue to face companies in their efforts to deliver high-value products to the comprehensive customer base for color pigments, which includes paints and coatings, printing inks, cosmetics, personal-care products, plastics, agriculture seed, electronics and many others.

To address these challenges and mitigate their impact on the color pigments sector, CPMA engaged with a national coalition of business and manufacturing industries to advocate for increased Federal Maritime Commission (FMC) regulatory oversight of the global shipping industry, specifically to address substantial increases in ocean carrier shipping costs and delays in deliver of needed materials. CPMA Chairman Ron Levi, representing the North American color pigments industry value chain and its customers, has offered to participate in future testimony before the FMC when that agency agrees to conduct formal hearings on this topic.

To further advocate viable economic solutions to resolve continuing supply chain challenges, CPMA joined a national coalition of trade associations and manufacturing companies to encourage the U.S. House and Senate to update and modernize existing laws impacting national and international supply chains for the specialty chemical sector. Objectives for the coalition include:

  • Raising awareness among members of Congress and their staffs about transportation bottlenecks and delays impacting a broad range of business sectors.
  • Introduction of legislation to address these challenges.
  • Proposing structural changes for the transportation sector to prevent future supply chain disruptions and substantial transportation prices increases that have resulted from pandemic-era practices across global shipping industries.

The color pigments industry value chain continues to develop innovative business strategies to overcome temporary supply chain disruptions to meet increasing customer demand for color pigments products and applications in North America and across the globe. At the same time, CPMA, the industry's trade association continues to advocate with federal government agencies and Congress for regulatory and legislative solutions.

About CPMA
The Color Pigments Manufacturers Association is the only U.S.-based trade association proudly serving the color pigments sector since 1925. CPMA offers advocacy programs, regulatory compliance tools and expert value chain insights customized for the industry and its divers markets in North America. Serving as the recognized industry voice, CPMA engages with policy makers and key stakeholders on matters pertaining to the environment, health, safety, trade and value chain issues.

For more information on CPMA, contact Executive Director David Wawer at dwawer@cpma.com.

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