The unprecedented disruption to the polyurethane foam supply chain continues to impact all North American end users of polyurethane foam and their ability to serve customers and meet demands in a timely manner.

The severe storm that hit Texas this past winter caused widespread damage to water and electric infrastructure and ultimately led to the shutting down of power throughout the region that is home to a large amount of oil refineries. Subsequently, fewer refinery byproducts, specifically those used to produce polyols, were produced. Polyols serve as a vital component in the chemical reaction that creates polyurethane foam.

Current market dynamics and delays are being driven by a second unexpected supply chain event that has immediately reduced the availability of the chemical agents used in all polyurethane panels. In early July, a major chemical supplier announced that on top of the supply chain challenges already encountered, they are now also experiencing upstream constraints on brominated flame retardants, which are an essential ingredient in the polyurethane foam mixture.

KPS Global is proactively exploring methods to add alternative solutions to help meet the needs of its customers. These include thermal liner panels and batten strips that provide quick, cost-effective alternatives for walk-in coolers and freezers to maintain operations until polyurethane foam becomes available.

In addition to offering various alternative products that will allow a walk-in to maintain operations until a full remodel is possible, the company is analyzing a potential panel recycling strategy and working with alternative suppliers to test substitute chemical formulations.