Shortages of chemicals essential to the manufacture of paints, glues and varnishes

Manufacturers have been struggling for several weeks to receive the chemicals needed for their production. Significant shortages, characterized by the activation of force majeure clauses by their suppliers and delivery delays put the availability of finished products under great pressure. In addition, the general increase in the prices of raw materials has the effect of a very strong increase in the cost of products.

A combination of heterogeneous factors results in the disruption of supply chains and thus the limitation of the production capacities of industries. These factors significantly impacting raw material suppliers would be linked to serious maintenance problems at certain production sites (accidents and major incidents, bad weather causing technical stoppages), supply difficulties or logistical tensions on transport. These interruptions or sharp slowdowns in the delivery of raw materials disrupt and reduce the production capacities of industries and therefore their possibilities to serve customers and markets in quantity and on time.

The partner federations of FIPEC also note that this situation is generalized at European level.

Strategic dependence on a supply chain in difficulty

The professions are suffering the consequences of their strategic dependence on an international supply chain which is today in difficulty, with no short-term visibility of an improvement in the situation. These tensions also cause allocations affecting all players in the sector. This situation crystallizes the fragility of the sector dependent on international players, particularly in Asia and the United States.

Jacques Menicucci, President of FIPEC, nevertheless wishes to “Salute the tremendous mobilization of the women and men of our industries to find solutions to this supply crisis and serve their customers and their markets in the best possible conditions. "

Significant consequences for economic sectors in the very short term?

The professions of FIPEC are integrated into many fields. Paints, inks, glues, varnishes are present everywhere in our visible universe (objects, buildings, constructions, etc.). All manufacturing is covered, protected or decorated by their products. A destabilization of these industries can therefore have extremely significant effects in all sectors of economic activity in the country.

These sectors, in addition to being significant players in relaunching activity in France, participate in strategic activities, for example in the food or medical packaging sector. Others have received considerable government support as part of the recovery plan (for example, the thermal renovation of the building) which should not be penalized by this situation. At this stage, manufacturers are doing everything possible to keep their commitments but strategic choices could be made by FIPEC members, to avoid sales at a loss or ensure the security of essential sectors, especially since the context of the Covid19 pandemic has already weakened the sector.

A call for the support of the public authorities for a regulatory framework adapted to the resilience of our industries

FIPEC members deploy unprecedented energy on a daily basis to find industrial solutions to substitute for many chemical substances, and thus compensate for delivery faults in order to secure the supply of their customers. Despite all these efforts, their service rates will be degraded and members cannot be held responsible for this situation of force majeure beyond their control.

In addition, chemical reformulations will require a change in product labeling. These professions want public authorities to urgently consider the best operational solutions to bring the emergency adaptations carried out by companies' R&D teams into compliance with regulations.

Through this action, the priority objective of FIPEC is to secure as much as possible the supplies of numerous sectors and to anticipate other situations of this type in the future thanks to more resilient regulations.