Chemical distribution is a critical link to the complex and dynamic U.S. supply chain, providing vital chemicals to countless end users. The industry safely and effectively delivers the chemical products essential to everyday life, and it also provides logistical and technological expertise to paint and coatings professionals. This includes services around procurement, specialization, blending and formulation, warehousing management, packaging, and regulatory compliance. 

However, amid these shifting services, a new wave of change and supply chain challenges has brought forward one theme this year: uncertainty. With the U.S. experiencing the highest level of tariffs since the 1930s, businesses are concerned about day-to-day disruptions, key investments, and long-term strategic planning. Supply chains are tightening, and operating costs are increasing for businesses large and small. With these potential impacts, businesses are taking fewer risks, deferring decisions, and hiring fewer people. Economic growth, particularly among the chemical distribution industry and the sectors it supports, is expected to ease before returning to long-term growth plans in the second half of 2026.

Amid these uncertainties, the supply chain is undergoing some significant positive changes, driven by technological advancements, regulatory rollback, the need for greater supply chain resiliency, and customers’ demands for sustainable and efficient means of transportation. Distribution companies across the nation are remaining nimble to adapt to evolving market trends and to stay competitive in the 21^st century global economy.

To better understand how these dynamics are reshaping coatings distribution, Paint & Coatings Industry spoke with Matthew Oliver, Global Vice President of Performance Materials, Ingredients + Specialties at Univar Solutions, and John Schierlmann, Technical Director at IndSpyre Solutions, Inc. From PFAS-free formulations to digital engagement, sustainability, and supply chain resilience, both leaders share how their companies are adapting to today’s uncertainty — and positioning for tomorrow’s opportunities.

-- Eric R. Byer, President and CEO of Alliance for Chemical Distribution (ACD)

1. Are there any end-use markets driving notable shifts in demand for particular chemistries?

Oliver: The automotive sector, particularly the electric vehicle (EV) space, has seen a slowdown, reshaping demand for certain chemistries. Construction is also softening under the weight of high interest rates and low inventory, though multi-residential projects remain resilient. These tend to offer flexibility that aligns with the younger generations’ evolving lifestyles.

Across sectors, the push for PFAS-free formulations is accelerating, signaling a broader shift toward regulatory-conscious innovations. The reality is that geopolitical shifts and currency fluctuations have created an unprecedented market dynamic, prompting manufacturers to adopt more risk-averse strategies.

Schierlmann: Yes — particularly in the floor finish market, where new substrates like LVT and concrete are driving chemistry shifts. These substrates require entirely new solutions rather than simply repurposing legacy VCT offerings. At the same time, PFAS regulations have accelerated the move toward replacements for fluorinated chemistries. Across construction and commercial spaces, lower-maintenance coatings are also gaining traction as they reduce labor needs for end users.

2. What lessons from recent supply disruptions are you carrying forward?

Oliver: The specialty chemicals industry continues to absorb lessons from COVID-19, extreme weather events such as the 2021 Texas freeze, and ongoing global disruptions. These factors are reshaping supply strategies well into 2026 and beyond, with multi-sourcing becoming a critical safeguard. The rise of artificial intelligence (AI) and digital tools is adding new layers of complexity and opportunity, demanding agility from every stakeholder. The landscape is everchanging and should be viewed as a system that requires constant recalibration.

Schierlmann: Tariffs have underscored the importance of supply chain resilience, reinforcing our long-standing strategy of partnering with the best suppliers in the world. We have historically aligned with domestic producers or multi-national companies with strong U.S. production assets. Quite simply, our suppliers invented these chemistries — and most produce in the U.S. This approach helps insulate customers from volatility while ensuring continuity of supply and technical excellence.

Another key lesson is to always weigh the long-term risks and benefits of purchasing decisions against the short-term ones. We work hard to make decisions based on careful analysis — not reactionary moves made from panic or desperation.

3. How important is technical support or formulation guidance in your value proposition? Are customers leaning on you more in this area?

Oliver: We call our technical team “The Technical Superheroes” — a name that reflects their deep expertise and the critical role they play in solving complex formulation challenges. As customers scale down internal resources, we’ve doubled down, becoming an extension of their labs and a trusted partner in formulation. This includes strategic collaboration beyond supporting our customers and suppliers. Our people are our value, and that value is deeply embedded in our customers’ success.

Schierlmann: Many of our customers’ internal labs operate at full capacity, and they truly value the support we provide to help ensure all their projects move forward successfully. That’s why technical support has become such an important part of our value proposition. We provide not only raw material supply but also formulation development, testing, and troubleshooting. In many cases, our lab services allow customers to complete projects faster and with greater confidence, extending well beyond what’s traditionally expected from a distributor.

4. What role does digital technology play in how you interact with coatings customers?

Oliver: Digital tools are streamlining the customer experience, from intuitive online ordering to personalized experiences. In mature markets, such as the ones we support, product trends may not be shifting as often as consumer-driven industries, but digital resourcing and refined research are becoming essential and driven by a desire for efficiency. These technologies aren’t replacing relationships but instead are enhancing them. The goal is to meet customers where they are, with precision and speed.

Schierlmann: Digital engagement is central to our go-to-market strategy. We’ve invested in more targeted and interactive marketing, which helps us communicate technical value clearly and efficiently. These tools allow us to differentiate from traditional distribution by strengthening customer engagement, streamlining technical information sharing, and creating a more responsive support model.

5. How are you helping coatings manufacturers transition to more sustainable raw materials or reduce regulatory risk?

Oliver: We’re actively supporting the shift to bio-based, circular, and lower-carbon-footprint products, backed by a comprehensive sustainability-focused portfolio of products. Our coordination with Eco Vadis and the EPA helps ensure that customers stay ahead of regulatory curves while meeting their own sustainability goals. It’s not a one-size-fits-all journey. Whether they’re just starting or already leading, we’re with them every step of the way throughout their sustainability journey.

Schierlmann: We monitor regulations closely through our trade organization involvement, which allows us to anticipate and prepare for PFAS and VOC transitions. By communicating upcoming changes early, we help customers reduce compliance risk. Our company has historically partnered with suppliers who invest in developing products with improved sustainability and biodegradability. Our lab services then help customers evaluate and qualify these options, ensuring performance never takes a back seat to compliance.

6. What do you see as the biggest risks and biggest opportunities for the coatings distribution market over the next 3-5 years?

Oliver: Demand volatility for key chemistries remains a central risk, especially as markets continue to shift. But the opportunity lies in bridging supplier and customer needs more effectively — creating value through alignment. Sustainability and AI are no longer buzzwords but instead are strategic imperatives in this market. The challenge is balancing technological advancement with the human expertise that defines our industry. Our focus remains on weaving both sustainability and AI into a resilient, future-ready model.

Schierlmann: On the risk side, ongoing industry consolidation remains a concern, as large players continue to acquire competitors, reducing overall market competition and customer diversity. The increasing complexity of state-level regulations also places significant pressure on product development timelines.

The opportunity lies in positioning ourselves as both a technical and regulatory partner. By offering robust lab services, staying ahead of regulatory change, and helping customers innovate faster, we can capture market share while building deeper, more trusted relationships.

Closing

Despite today’s headwinds, the coatings distribution industry is proving its ability to adapt and evolve. Uncertainty may be the defining challenge, but distributors are responding with creativity, technical depth, and strategic foresight. As Oliver and Schierlmann emphasize, the path forward lies in balancing risk with innovation — from investing in sustainability and digital engagement to strengthening supply chains and customer partnerships. In doing so, distributors are not only weathering volatility but also shaping a more resilient and future-ready industry.

*This article was enhanced with AI.