Update on the Polyurethane Foam Crisis – November 2021

An article from The Atlantic stated it perfectly: “This is the Everything Shortage… When the global supply chain works, it’s like a beautifully invisible system of dominoes clicking forward. Today’s omnishambles is a reminder that dominoes can fall backwards too.”

What’s Happening in the Cold Storage Industry?

The current market dynamics continue to affect North American end users of polyurethane foam and their abilities to serve customers and meet demands in a timely manner.

Major chemical suppliers have continuously struggled to increase production and sustain sufficient volumes of chemicals, leading to significant delays in processing orders. Most recently, Honeywell, the manufacturer that provides the blowing agents used to create insulated panels, experienced an unplanned shutdown, causing an operational disruption and additional material shortages.

At the same time, another major supplier of isocyanate, a key component of the polyurethane foam mixture, underwent a planned shutdown that has taken longer to bring back online than was expected, limiting supply.

As we move forward during this challenging time, KPS Global^® is proactively exploring alternative suppliers in an effort to increase capacity and meet our customers’ needs.

Each link in the supply chain needs to operate effectively to restore order in the system, yet each component has its own challenges to overcome.

Ultimately, we want to thank everyone for their cooperation and patience during this frustrating time.