Search: Search 800-849-8683 FOAM PRICES: THE PERFECT STORM OF HIGH DEMAND, LIMITED SUPPLY, AND GROWING TRANSPORTATION COSTS Mar 26 2021 If you regularly purchase foam products or haven’t in a while and see what things cost today, you have probably experienced some sticker shock. Well, shock may be an understatement. And, no, it’s not because Hibco or anyone else is trying to gouge you. The Foam Plastics industry is facing an unprecedented “perfect storm” of growing demand for raw materials that go into producing foam, shortages of those raw materials, increased demand for truck drivers, and rising fuel prices. These are all contributing factors leading to higher prices, limited supply of finished foam products, and longer lead times. What’s Driving Demand? Globally, the demand for foam products is being driven by several factors, including new commercial construction, a growing need for product packaging, and increased demand for home furnishings, among other things. The low supply/increased demand differential always has a direct impact on prices. Raw Material Shortages When you couple a growing demand for foam products with a global shortage of the raw materials that go into them, the eye of the storm continues to grow. The prices for some foam ingredients, like PVC, have risen more than 20 percent in the last month alone. Transportation Challenges The cost of transporting raw materials and finished products is also increasing at incredible rates due to truck driver shortages and rising fuel costs. The trends of rising freight costs and longer lead times for trucks are likely to continue as the trucking industry faces familiar obstacles – plenty of material to be moved and a shortage of drivers to move it. And that driver shortage will continue to deteriorate as 1,000,000+ drivers are projected to retire or leave the truck driving workforce by 2024, and there just aren’t enough young people looking to trucking as a viable career. As a result, trucking transportation rates are on the rise and could double by the end of the year. When Will The Storm Pass? We wish we had a magical “Hibco Storm Radar” we could look at and tell when things are going to stabilize and get better. But like with any storm, it can be a bit of a challenge to predict much of anything at this point, and you may evaluate the damage until the storm passes. In the meantime, hold on as tight as you can. We are encouraging our clients to plan ahead as much as possible. If you are accustomed to short lead times or just-in-time deliveries, you will have to extend them. As for pricing, we are encouraging everyone to evaluate and reevaluate expenses and their own external pricing constantly. We’re here for you, and we hope you reach out to us to discuss your immediate and long-term foam needs, so we can develop strategies to get you the foam products you need when you need them. Category: Foam Products By Chris Pavlansky March 26, 2021 Tags: foam material costs Foam price increases foam prices increase 2021 increasing-price of foam why is foam so expensive Author: Chris Pavlansky Chris Pavlansky is a sales and marketing professional at Hibco. He works with purchasing agents, buyers, engineers, quality managers, and company presidents that have exhausted most avenues for foam packaging or custom foam solutions, and now they have a poor design or damaged goods problem. His clients frequently tell him they are frustrated with poor communication, concerned they are receiving wrong information for their needs concerning foam, worried about excessive lead times, and low quality. He works to find solutions fast for his clients. Specialties: Polyethylene (PE) Foam, Polyproylene, Ester and Ether Polyurethane, Polyisocyanurate, EPS, Flotation, Gasketing, Filtration, Packaging, Case Inserts, Foam Envelopes, Foam Tubing, Aerospace, Automotive, Athletic Padding, Dunnage, Construction, Medical, Marine, Military Packaging, Sports, Display, etc. Post navigation PREVIOUS Previous post: Making PPE More Accessible Related Posts Making PPE More Accessible August 4, 2020 Hibco Answers The Call For Help During COVID-19 Pandemic April 9, 2020 Hydrophilic Foams – Soak Up the Knowledge November 8, 2019 Search: Recent Posts Foam Prices: The Perfect Storm of High Demand, Limited Supply, and Growing Transportation Costs Making PPE More Accessible Hibco Answers The Call For Help During COVID-19 Pandemic When One Size Doesn’t Fit All Hydrophilic Foams – Soak Up the Knowledge Archives March 2021 August 2020 April 2020 December 2019 November 2019 Categories Foam Products PPE Uncategorized Contact Us P.O. Box 157 1820 US Hwy 601S Yadkinville, NC 27055 800-849-8683 Hibco Foam Plastics is a premier supplier of quality engineered foam plastics and cushion packaging. Contact us to learn more about how we can help your ideas take shape. View our ISO9001:2015 Certificate Copyright © 2021 Hibco Plastics, Inc. Site design by LinTaylor Marketing Group.