You might wonder, “Will my small business be affected by the resin shortage in the U.S.?” Here at A-Pac Manufacturing, we take pride in working with small businesses and are here to help. We’ll give you the inside scoop on what’s going on.
Is There a Resin Shortage in the US?
In 2021, the world started suffering from a raw material shortage, and its effects have carried over into 2022. In particular, the plastics industry is continuously impacted by labor shortages, higher demand, and increased import taxes on resin.
Plastic resins are a primary material used in many industries, and their high prices have caused issues for many businesses. If you’re afraid that this might happen to your business, we hope we can put your mind at ease with all the facts.
What Caused the Resin Shortage in the US?
Multiple factors contributed to the plastic resin shortage in our country. The two most impactful include:
1. The COVID-19 Pandemic
One element was the COVID-19 pandemic.
During this time, production paused, and the entire petrochemical sector came to a halt. Since resins are a byproduct of petroleum refining, anything that causes a decline in refining will create a domino effect – making resin more expensive and difficult to find.
The pandemic also caused issues related to shipping and labor, which also hurt the industry.
2. Extreme Weather Conditions in the South
The second major factor adding to the resin shortage is the harsh winter storms throughout Louisiana and Texas in 2021.
During this time, oil refineries in the area were forced to close due to inclement weather. They struggled to get back on track as demand for epoxy resins and other raw materials continued to rise.
What Businesses in the US Are Affected by the Resin Shortage?
Across the United States and the rest of the world, the resin shortage continues. It has caused a rise in resin prices, and the demand for resins surpasses the volume of available supplies. This makes it difficult for manufacturers to procure polyethylene, nylon, PVC, epoxy, polyester, and vinyl resins.
When manufacturers can’t obtain resin, they cannot make a variety of products, including pipes, tanks, pharmaceutical equipment, automobile parts, appliances, electronics, and more. As you can imagine, this has resulted in many businesses being affected by the resin shortage.
According to Resilinc, life sciences, healthcare, and automobiles are the three most affected industries.
Where Can I Get Plastic Bags for My Small Business?
If you’ve made it this far into the blog, you’re probably concerned about your small business and how you can get the plastic bags you need on time. Luckily, A-Pac Manufacturing is here for you.
Here at A-Pac Manufacturing, we prefer to work with small businesses. We can fill your orders with shorter lead times than other manufacturers in the industry. We offer bags in a wide range of standard and custom sizes. Plus, we have no minimum order quantity. Give us a call for more information today!
