Price Increase due to Raw Material Increases

Posted by Ryan C. Holm on Jun 27th 2022

Price Increase due to Raw Material Increases

Dear Valued Customer: 

Thank you for your continued trust and confidence in The Nelson Paint Company. Since the beginning of 2021, the entire coatings industry has been tested and stressed like never before. 

Several extraordinary occurrences including Russia’s invasion of Ukraine, China’s extended Covid shut down, the loss of substantial industry capacity, and global capacity limitations among other circumstances have prevented industry raw material recovery and created unprecedented and sustained inflationary pressures impacting our industry. In addition, the enormous price fluctuations in fuel costs, work force shortages leading to increased wage bills, and shortages of truck, ship, rail, and even wooden pallet availability leading to distribution cost increases are all expected to continue at unparalleled rates in 2022. For example, our solvent cost has increased by 150%.

The Nelson Team has managed through these conditions by expanding our raw material supply chain, adding global suppliers, and continually driving manufacturing efficiencies. 

Our raw material costs continue to rise at dramatic levels across our entire portfolio. By design, price increases achieved to date have not covered the explosive raw material, labor, and energy inflation as we expected the pace of inflation would slow down. 

Our raw material costs continue to rise at dramatic levels across all of our products. Given these continuous and extreme pressures, we will needed to implement a price increase effective June 13, 2022 or as permissible by contract. We will continue to do all we can to mitigate the inflationary pressures, but cannot continue to operate at unhealthy levels as we have not passed along the cost increases near the level of inflation we are experiencing and can no longer wait for these pressures to ease.

We appreciate your business!  Please contact Ryan Holm, Sales, Business Development and Logistics Manager at (906)774-5567 x101 with any questions.

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