This two-part series will examine the challenges we have been experiencing in the coatings and adhesives industries since the onset of COVID-19 and offer a look ahead for 2022-23, with the understanding that if we have learned anything in these past 24 months, it is that nothing is certain any more. Our global industries are gathering together for the first time in 4+ years at the American Coatings Show and World Adhesive Conference in March and April 2022. It seems almost unbelievable that these events will be held in person, in light of our changed world. Even more important, almost every product we use on a daily basis is influenced by the chemical industry. This is the industry that feeds our coating and adhesive platforms. It's no secret that COVID-19 wreaked havoc on the chemical industry (#5 hardest-hit industry). Chemical demand was shattered throughout end markets. Global supply networks were disrupted. Chemical company stock prices took enormous losses. And the competitive order of chemicals producers shifted almost immediately. Figure 1 shows the impact on chemical demand across various end markets.
Global supply disruptions, rolling COVID-19 restrictions, the February 2021 deep freeze in the United States along with Hurricane Ida in August, as well as container shortages and logistics constraints causing extended lead times, have resulted in basic commodity shortages all the way down the supply chain to finished goods. The chemical industry was shaken to its core by the looming worldwide energy scarcity (from oil to natural gas to coal) and the resulting price spike.