Worldwide Foam Ltd., based in Elkhart, Ind., started business about 15 years ago.
A company of about 400, they are in a niche market, focused on servicing cross-linked polyethylene blocks, used mainly in packaging but which also boast damping and sealing performance characteristics.
And the supply chain issues are acute for the company, a subsidiary of Jacobs and Thompson Co. of Toronto, Ontario.
"On certain materials we have been able to maintain five- to seven-day lead times ... we used to get a truckload of material in a day," said Shawn Greene, vice president of sales for North American elastomers with Worldwide Foam. "The supply chain has really been ruptured since COVID hit. Before, we used to have 10,000 buns sitting on the floors.
"That is not the case any more."
Worldwide Foams sells to automotive and medical, as well as electric "to some degree," Greene said. The company converts (via skivving) the polyethylene material to a specific size or thickness for its customers, and the customer then die-cuts it, or punches it out in their own required shape.
Between supply chain woes and labor issues—think "The Great Resignation," or as one Time magazine author put, "The Great Reveal"—the economics of the current foam rubber industry has been challenging.
"I have been doing this for six years and I've never seen it this bad," Greene said. "You have a bunch of different things hitting at the same time, labor force issues being one, and this represents tribal (industry) knowledge that leaves when those people leave."
Container costs, with their rampant freight line inflation and matching monopolies on those containers—can represent the proverbial kick when a company already is down.
"It seems like someone keeps turning the tap a little tighter, and up goes the price," Greene said. "We have major lead times attributed to this ... to where I can get it to you in four months, but I can't get it to you now.
"And when the tap turns back on, which I expect it will, as we wait for material to show up the next issue is going to be staffing. Once we have raw materials, how do we get the product out the door?"