Posted on December 17, 2025 by Brent Phillips

In today’s infrastructure landscape, the demand for Protective Coating solutions has never been greater—especially for municipal water systems that depend on corrosion control to extend asset life. Water asset managers and city authorities face mounting challenges tied to the protective coatings market, where global supply disruptions and cost fluctuations are reshaping procurement, maintenance, and capital planning decisions.

Current Supply Chain Challenges

The COVID-era backlogs and geopolitical tensions that disrupted global commerce continue to strain the industrial coatings supply network. According to data from the U.S. Department of Energy (DOE) and the National Institute of Standards and Technology, logistics inefficiencies, limited shipping container availability, and port congestion have increased lead times for coating materials by more than 40% compared to pre-2020 levels. These supply chain challenges directly affect coating availability, forcing water utilities to adjust project timelines or explore alternative vendors.

For coating contractors like Cunningham Sandblasting, this means strategic scheduling, early material ordering, and maintaining close communication with city procurement teams to avoid project delays.

Rising Raw Material and Energy Costs

Energy-intensive chemical production and scarcity of certain feedstocks—such as epoxies and zinc—have inflated raw material costs across the industrial coatings industry. Data from the U.S. Energy Information Administration indicate industrial energy prices rose roughly 8% in 2024, driving associated cost increases in coating manufacturing. Likewise, the scarcity of critical inputs used in corrosion-resistant coatings continues to challenge budget forecasting for municipal projects.

Key drivers of cost escalation include:

• Increased energy and transport expenses.
• Price spikes for specialty resins and solvents.
• Tight global inventories due to regional production cutbacks.

Together, these factors contribute to ongoing price volatility, making long-term planning more difficult for public utilities.

Impact on Manufacturers and End Users

Manufacturers are absorbing cost pressures through efficiency upgrades—but some increases inevitably pass downstream through to customers. For municipal customers, this can affect overall system maintenance budgets. Deferred coating projects risk higher corrosion damage and expensive rehabilitation later. In water systems where reliability is essential, the cost-benefit of early corrosion control far outweighs the cost of delayed maintenance.

Adaptation and Mitigation Strategies

Industry leaders are responding with diversified sourcing and improved sustainability practices. Municipal water authorities, guided by recommendations from the Environmental Protection Agency, are also prioritizing lifecycle cost analysis when selecting coating systems.

Some effective strategies include:

• Localizing material suppliers to mitigate shipping risks.
• Investing in high-performance or environmentally friendly coating technologies.
• Extending recoat intervals through improved surface preparation and application control.

Contractors working closely with municipal teams can ensure Protective Coating work remains on schedule and within budget—despite supply constraints.

Outlook for 2026 and Beyond

Looking ahead, the Protective Coating market is expected to stabilize as supply chains gradually adapt and energy prices moderate. However, volatility remains a concern. Market analysts from DOE predict that material diversification and digital procurement platforms will be key to maintaining supply continuity.

For water asset managers, staying informed about trends in the Protective Coating industry—and maintaining collaborative vendor partnerships—will be vital to navigating ongoing supply and cost pressures. By planning and emphasizing asset longevity, city water systems can weather both economic shifts and environmental challenges more effectively.

Amid ongoing supply chain and cost fluctuations, establishing reliable partnerships is essential to maintaining the integrity and performance of municipal water assets. Cunningham Sandblasting offers proven expertise in applying Protective Coating systems that meet rigorous industry and regulatory standards. Our team works collaboratively with city water authorities and engineering departments to deliver durable, cost-effective results. Contact Cunningham Sandblasting to schedule your next Protective Coating project and ensure your water infrastructure continues to operate safely, efficiently, and within budget expectations.