Solutions for Adhesives Rising Costs & Supply Chain Issues

Adhesives Supply Chain Solutions

Industrial adhesives are used in many market applications worldwide with the global adhesives and sealants market estimated at more than $63 billion in 2021 by Grand View Research, and expected to grow from 2022 to 2030 at a compound annual growth rate (CAGR) of 5.9%. Demand continues to increase for adhesives and sealants in spite of the challenges the industry faces with inflationary pressures and supply chain issues.

So how can companies plan for growth when continually focused on reducing costs and lead times? Partnering with an experienced industrial adhesives supplier could provide the advantage you need to stay competitive in the midst of a volatile market landscape.

Increasing Demand for Industrial Adhesives

Increasing demand for industrial adhesives across many market segments is driving growth. Many materials, such as metal and aluminum, are being replaced by highly durable materials, which is expected to positively affect demand in many packaging applications. Other industries, such as automotive, furniture, and construction, are expected to further drive demand for industrial adhesives as many mechanical fastening methods and welding are being replaced with industrial adhesives that provide superior bonding capabilities.

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Controlling Costs amidst Volatile Prices

The raw materials utilized in adhesive and sealants products come from crude oil and petrochemicals. The volatility of these material prices affects the profitability of many manufacturers. In spite of this, demand for adhesives in manufacturing, construction, and automotive is expected to increase, forcing manufacturers to find a way to continually address inflationary pressures.

Transportation and Logistics Issues

In addition to challenges with cost reduction, many companies are faced with transportation and logistics issues causing significantly longer lead times for delivery. Managing growth while planning to receive raw materials on time is a challenge, especially when trying to also keep costs down and customer satisfaction high. According to a report issued by the American Trucking Association, the industry was short more than 60,000 drivers at the end of 2018 and is predicted to increase to more than 100,000 in five years if conditions do not change substantially.

The US Bureau of Labor Statistics disagrees with this number, however, and both organizations look at truck driver turnover differently when calculating driver shortages. The fact remains that unless more young people join the truck driving industry, long-term issues will only get worse as truck drivers retire from the profession.

Manufacturers can work to improve transportation and logistics issues with raw materials, including industrial adhesives, by condensing their supply chain with reliable, domestic chemical and adhesive suppliers. Sourcing adhesives from domestic suppliers can help to offset rising shipping costs and the unpredictability of port and airport closures.

Improve Planning to Optimize Capacity

Raw materials sourced from non-domestic suppliers are particularly affected by logistics complications. Manufacturers attempting to better control inventory demand immediate updates on deliveries and notification of delays. Transparency in their supply chain is critical to improving efficiency, productivity, and profitability. Many companies today are addressing shipping issues by improving relationships with logistics providers and sourcing with domestic suppliers.

Domestic Industrial Adhesives Supplier

Universal Chemicals & Coatings, Inc., UNICHEM, is a domestic custom supplier of chemicals, coatings, and adhesives used in a broad range of markets and applications. We offer a versatile line of coil-applied industrial adhesives and coatings for many business and consumer products, construction elements, transportation and vehicle products, HVAC, containers, packaging, and more. We follow strict quality policies as part of our ISO9001:2015 registration combined with proprietary quality procedures.

UNICHEM offers industrial adhesives and coatings with quality, delivery, and results you can count on. We provide a tradition of excellence with more than 50 years of experience and deep technical knowledge of various application methodologies. Contact us to learn how we can partner with you to help address your cost, quality, or logistics issues with industrial adhesives and coatings.