Issue link: http://psai.uberflip.com/i/1361593
ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION APRIL 14, 2021 Page 12 Supply Issues Create Challenges and Opportunities…continued from page 11 Continued on page 13 In addition, many items that have become a necessity during the global pandemic, like hand sanitizer, face coverings, and laundry detergent, will sustain [their] increase on a per capita basis. The result is a compounded demand growth ensuring the need for products produced from petrochemicals will not stop, and regardless of social distancing and lock downs, demand will continue to grow well into the future." Short- and Long-term Implications for Portable Sanitation Currently, industry suppliers take a variety of views, and they have questions of their own, regarding the shortages and when they might resolve themselves. "There are so many unknowns right now… Will raw material costs continue to increase, or will the level off and then come down? When? Will the demand continue to exceed the supply as more events open up and customers need new equipment? What material or component will be short next?" —John Babcock, Satellite Industries "The resin shortage will end and cost increases will level off later this year. The end result will be inflation in all industries. The demand for products will steadily increase thr[ough] 2022 as events reopen and projects continue, creating a positive surge in our industry and many new opportunities for many companies. J&J will continue to pursue more resources that will better help us to support our customers. —David Roncadori, J&J Chemical Co. "We are all hopeful that the situation will improve, but it doesn't look good for the near term, with the hope of a late summer/early fall level of relief and supply loosening up in the market." —Karl McMichael, Armal "Plastics and market experts are worried about the upsurge in prices and the correlating devastation of plastic supply chains. This may have an effect on the prices of plastic products in the future, with no guarantee that they will go back to what they used to be. —PolyJohn's JohnTalk newsletter Based on the market intelligence we have at this time, it does appear likely that supply and demand for most products will eventually come back into balance, but when that occurs is probably months if not years away. It also appears likely that the balance will be reached at a level where greater quantities of petroleum products will be required to meet the world's needs. So what should portable sanitation companies do in the near term? • Be proactive. If you think you will need anything—units, hand wash stations, trucks, deodorizers, and trailers— talk to your suppliers early and plan for extended delivery windows. In normal times it might make sense to avoid tying up money in unneeded inventory. Right now, the calculation may be different.