Maria Robertson

ATSSA research indicates raw materials shortage receding

Since the first quarter of 2021, ATSSA has monitored the availability of several key raw materials on behalf of the roadway safety infrastructure industry.  In the most recent survey conducted in May, most members surveyed indicated they are seeing lessening impacts from the raw materials shortages of last year.

Below is a snapshot of the information gathered from the latest member survey:

  • 32% are experiencing a shortage, which is down from 92% in April 2022.
  • Raw materials identified as in short supply are resins and electronic components.
  • Based on the current supply and demand of raw materials for the 2023 construction season, 77 % of manufacturers anticipate being able to meet their roadway safety industry customers’ needs and 9% indicated they could not.
  • Based on the current supply and demand of raw materials for the 2023 construction season, 86% anticipate being able to meet all contractual obligations; 9% indicated they could not.
  • More than half of ATSSA members participating in the survey don’t expect prices to increase by more than 10%, while another 40% anticipate price increases between 11% and 40%, depending on the product.

Additionally, members indicated that inflation seems to have leveled off, but prices have not declined from the inflationary levels of the last 12-18 months.

In response to the latest raw materials survey results, ATSSA President & CEO Stacy Tetschner said, “I understand there may be continued challenges in obtaining electronic components and microchips to support the demand for signs and signals. Resin, plastics and sheeting have also been referenced. However, most of the suppliers feel they will be able to meet their contractual obligations for this year and be able to build on these successes into 2024. While this is better news than a year ago, we will continue monitoring the availability of materials by surveying our manufacturer and supplier community to ensure ATSSA keeps our industry informed.”

In May 2022, ATSSA released a Special Report on the raw materials shortage, which found that nearly 92% of members who responded were experiencing a shortage and 90% expected the situation to continue for at least six months.  

At that time, the percentage of members impacted by the raw materials shortage had increased with each survey, going from 75% in the first survey in March 2021 to 88% in June 2021 and 92% in May 2022.

The surveys were conducted by ATSSA’s Innovation & Technical Services Team, with its director, Eric Perry, compiling and analyzing the results.

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