Higher Costs for Plastics Used Everywhere Are Becoming Next Inflation Headache

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Some buyers are receiving only about 70% of the resin they need, he said, while lead times for certain materials have stretched from one to three months. Fresh-food packaging — for products like produce, bakery goods, meat and cheese — will get hit first.

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If shortages persist, shoppers could begin seeing gaps on shelves by August and September, he said. 

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“It gets real when somebody wants to go to the shelf and buy something and it’s not there,” Dominion said. 

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Lowe’s, Whirlpool

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In earnings calls, large corporations across industries are warning about the rise in plastics costs. 

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Lowe’s Cos., the home-improvement chain, said in May that it was working with suppliers to mitigate the impact of higher prices in commodities including resin and “sharing in that burden.”

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Whirlpool Corp., whose refrigerators, dishwashers and washing machines contain dozens of plastic components, expects higher resin prices to drive up raw material costs in the second half, CEO Marc Bitzer told investors last month.

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Restaurant chain Cava Group Inc. told investors it has built higher energy-related costs into its annual guidance, including pressure from fuel surcharges, utilities and polyethylene expenses tied to food, beverage and packaging.

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Meanwhile, Costco Wholesale Corp. flagged rising costs across parts of its supply chain as petroleum-derived inputs become more expensive.

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“We are anticipating further inflation in a number of non-food categories as higher resin costs start to flow into cost-of-goods,” Chief Financial Officer Gary Millerchip said during the retailer’s quarterly earnings call. “Particularly if oil prices remain at elevated levels, it’s likely to see some increases in items that have sort of plastic components or polyester or cotton because of the impact of higher resin costs.”

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Consumers are already paying more for necessities, from fuel to food, and household savings buffers have thinned since the last major inflation surge in 2022. The consumer-price index jumped 4.2% in May, the highest inflation rate in over three years, mainly because of energy costs.

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As the plastics shock moves closer to consumers, it will likely add more challenges for President Donald Trump and Republicans ahead of midterm elections in the fall.

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In a recent impromptu conversation at a local Pennsylvania restaurant, Gross, the molding-company executive, said he tried to explain as much to his local Republican congressman.

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“I told him, I believe Republicans will suffer in the midterms because of this inflation, and it’s detrimental to our business,” said Gross. “It’s going to put pressure on us through the rest of the year. Whether they can do anything about it, I have no idea.”

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—With assistance from Christopher Charleston and Devika Krishna Kumar.

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