Australia Dodged Global Paint Supply Chain Problems, so Why are Painting Costs set to Rise?
In the building supply crisis of the Covid peak period, one trade remained relatively resilient. The painting and decorating industry has experienced its share of problems but has fared far better than other trades. As the situation improves, why are painting prices now set to rise?
Supply chain disruption in 2020 – 2021 period saw soaring costs of industrial and house paint causing a crisis in the industry, especially in the US. In Australia, suppliers were able to maintain their paint supply for domestic use, despite global supply chain shortages on key ingredients including resins. The Australian painting industry now faces a new challenge, labor supply.
Australia dodged a few bullets in the 2020 – 2021 supply chain disaster faced by the USA and Europe. As shipping costs increased fourfold and the number of containers moving across oceans dived, the EU and US were hit again as land transport costs increased with border closures and staffing issues.
Australia’s leading paint supplier, Dulux manufactures on shore bypassing many of the global supply chain issues. While the Australian market experienced some delays in delivery of other brands, shorter distances from key paint producing countries in Asia cut cost of paint and other building material suppliers.
As the nation braces for further supply challenges on key building materials (partly due to Russian sanctions and continued closed borders) paint, particularly locally produced paint, should “flow free”.
The very thing that saved us from global supply chain issues may now pose a new threat. The ongoing staffing crisis due to Covid-19 surges continues to disrupt all industries, and this time, paint is not immune.
“As Perth painters, we’ve been doubly lucky. We use Dulux paints which has manufacturing and distribution infrastructure locally and Western Australia kept the Covid-19 pandemic at bay for a long time. Now we’re seeing delays due to staffing issues and while we aren’t short on paint just yet, we’re no longer immune to the trades industry crisis.” Said Stephen Cochrane, principal at one of Australia’s longest running painting companies.
While Australian paint manufacturers maintain that they’re able to meet demand, cost of road shipping continues to increase due to rising fuel prices, in combination with staffing challenges. Like builders, plumbers, roofers and tilers, painters are set to become a scarcer commodity, with longer wait times and higher job pricing. As the property market undergoes rapid change, now may well be the best, and possibly only time, for property traders to get a little “refresh” at current market prices.
