Fiberglass Resin Shortage Affecting Manufacturers

The global covid-19 pandemic brought about many changes in the pool industry. Currently, there is shortage of many essential parts and supplies for swimming pools. More aspiring pool owners are getting disappointed by the day. Manufacturers have enormous backlogs of pending orders. But why has their been such dramatic and sudden slow-downs of inground pool construction during the height of the season? One of leading causes among fiberglass builders this season has been slow delivery of shells which has a direct correlation to ongoing resin shortages.

Understanding the fiberglass resin shortage at an in-depth level

As mentioned earlier, there has been a delay in pool construction due to a shortage of fiberglass resin material. As a result, the prices of liquid vinyl ester resin and fiberglass have significantly gone up. Subsequently, many fiberglass manufacturers are turning down shell orders amid the high demand for fiberglass pools nationwide and a lack of raw materials to facilitate orders.

Pool Magazine received word from numerous builders that they had been notified by Latham that shell deliveries would be delayed up to 8 weeks because of ongoing shortages. We reached out to America’s largest manufacturer of fiberglass inground pools to see how they are handling the ongoing resin shortage.

“Latham’s manufacturing facilities remain open and operational.” said Crist Leigh Wunsch, spokesperson for Latham, “Homeowner interest in our products is stronger than ever, and our teams are working hard to meet the increased demand. We are facing intermittent raw material shortages, along with the rest of our industry, which has resulted in some temporary manufacturing inefficiencies at our facilities.”

“We have been leveraging our strong relationships with our suppliers to navigate this issue,” continued Wunsch, “and we have looking at alternative resin sources to continue to diversify our supply chain. Despite this, Latham continues to deliver solid growth. The strong underlying secular trends of our industry remain intact, and we feel well positioned to continue to meet growing consumer demand for pools.”

Manufacturers Everywhere Are Feeling The Pinch

Kent Wooldridge, president of the United Marine Manufacturers Association, says, “Indisputably, it is extremely painful to turn down orders from loyal clients. Telling pool owners that they have to halt their businesses just because you cannot supply them with the required raw materials is hard. Even worse, you cannot refer them to another person who can offer them the appropriate raw materials. In addition, those who have these materials sell them at crazy prices.”

“The majority of suppliers are overburdened by the fiberglass shortage. The winter storms that damaged the chemical plants producing resin were therefore a big disaster.”

president of board manufacturer Aipa Surf Co, DUKE AIPA

Have raised import tariffs made the shortage situation worse?

Usually, the United States is responsible for producing only a tiny fraction of fiberglass cloth. The country mainly relies on affordable fiberglass supplies from China. However, since Trump’s administration, there have been obstacles preventing the smooth import process. In particular, since 2018, a 25% import tariff was placed on fiberglass cloth and resin. This discouraged most manufacturers from importing fiberglass. On the flip side, Chinese manufacturers raised their export prices.

In 2020, the coronavirus outbreak made the supply chain worse due to travel restrictions. The lockdown also forced Chinese chemical plants to shut down. At the same time, there was increased demand for pool construction services since most homeowners were looking for ways to upgrade their backyards.

The effect of natural calamities on fiberglass resin shortage

This year, the winter storm in Texas disoriented a broad spectrum of activities in the pool industry. The freezing weather conditions forced the chemical manufacturing plants in Houston to shut down. Moreover, the storm forced Hexion Inc and Olin Corp., the biggest epoxy producers, to stop operating.

Manufacturers report that once they finally get a truckload of resin, it doesn’t stick around very long. It’s already earmarked for a back-order. In fact, in most instances, all the resin coming in has already been pre-sold. This has been the situation for the past few months.

Are manufacturers affected?

Kirk Sullivan, a Florida pool builder, had to refund 250 orders due to the fiberglass resin shortage. Sullivan says that he received very few supplies this year during the summer. Therefore, his company has been unable to continue taking new pool construction orders. Fortunately, all his staff members are still at work, hoping for things to get better.

Regional manager, Todd Prestage, says, “Before, it used to take approximately six weeks to get a Surf Hardware International Board. Now, it takes six months.”

Several fiberglass manufacturers have tried solving this issue by importing a more significant percentage of raw materials from Asian countries that don’t incorporate high import tariffs. But they still find themselves raising their prices due to all the labor and shipping costs involved. Consumers, on the flip side, have no other choice but to pay more.

The bottom line

Other than taking longer to reach consumers, prices for resin have skyrocketed. Consequently, very few pool companies are finding it easy to adjust. One Latham Grand Dealer we spoke to said, “The resin shortage is making it more difficult for smaller companies like ours to get shells and obviously it’s been costing us all sales. The big guys are fortunate since they have guaranteed delivery based on their order flow”

One thing is for absolute certain, as the summer begins to wind down, this industry certainly has it’s work cut out toward improving the supply chain issues that have hindered so many this pool season.