We continue to see significant price increases in many of our raw materials. This time, it’s for propylene glycol and butyl carbitol, two major solvents that we purchase for use in our fountain solutions and alcohol substitutes. The producers of both products have declared force majeure. ( See Attached Letter for DOW)
We brought in our last tanker of propylene glycol last week at $1.70 lb.; the one that will be delivered next week will cost us $2.90 per lb., and increase of nearly$10.35 per gallon and over 70%!
The increase for butyl carbitol is $13.50 per gallon! These increase are in addition to ongoing increases in surfactants, acids, gums, etc. that also go into these products. The increases are due to continued escalation in the price of natural gas and crude oil, lingering production delays caused by Hurricane Ida, and increased worldwide demand for these products. Propylene glycol, for example, is used in everything from our products to shampoo, toothpaste, shaving cream, de-icing fluid for aircraft, cleaning products, etc.
Attached is a spreadsheet showing the major products affected by these increases, the scale of the increases by product, and the price increases necessary to pass on to our customers if we are not only to maintain our margins, but recover some margin also lost previously this year.
Unfortunately, it’s not as though we have significant inventory of any of these products to allow us to defer these increases. As you are aware from previous emails, since the spring we have worked “hand-to-mouth” in terms of receiving raw materials and manufacturing finished product for inventory. As soon as one material shows increased availability, it seems as though another goes on allocation or experiences production and shipment delays.
Monday, November 1st, 2021 is the effective date for these increases.
Below are items that will be impacted:
Webfount 260E $ 2.12 gallon
Questar CTP 300F $ 2.39 gallon
141-143 Fountain Concentrate $ 1.82 gallon
214-30 Fountain Concentrate $ .53 gallon