Pavement Marking Material Shortages

AGC has been receiving inquiries these past few days from highway contractors and AGC chapters from around the country concerning the shortage of a variety of pavement marking materials. AGC has learned that a number of factors have conspired to create a significant shortage in supply of these materials. These factors include a breakdown of a Dow Chemical plant that produces the majority of the feedstock for a resin used in the production waterbourne traffic paint, and shortages in the supply of Titanium dioxide, widely used as a whitener for paint and other products, and rosin esters, the primary resin system used in alkyd-based thermoplastic. In addition to shortages, the price of these materials have already increased and are expected to continue to increase significantly. Supplies of these paints are running 40 to 50 percent below project demand. From what AGC has learned, Dow chemical and several of the major paint and marking material suppliers have taken the dramatic step of protecting their interests by claiming a "force majeur" exemption to relieve themselves of liability under their contracts for failure to meet contract requirements. AGC has contacted FHWA and AASHTO to urge that they work with the state DOTs to develop a contingency plan to ensure that critical highway construction projects can move forward safely to completion, including final stripping and to ensure that there are no negative ramifications for contractors, subcontractors or suppliers for events that are out of their control. AGC chapters and contractors have been meeting with their state DOTs to discuss a variety of remedies that may provide at least temporary relief, including extension of contract deadlines, change orders, prioritizing stripping requirements and easing up on MUTCD specification requirements, at least temporarily, until this shortage is resolved. Please keep us informed of what's happening in your state and remedies that have been effective.