In an interview yesterday morning on CNBC embedded below, Michael McGarry, chairman and CEO of paint supplier PPG, detailed the dramatic impact of inflation on its business and how the company plans to counter it.
McGarry explained that the company experienced 25% cost inflation in the U.S. during the first quarter. Asked by CNBC Squawk Box co-host Becky Quick if that was overall, and not just higher raw materials, McGarry explained that it was overall across the business saying it included “…energy, labor, transportation, warehousing. There’s not a lot of places we’re not seeing inflation right now.”
McGarry explained the rising costs were leading to price increases for its products. He also explained that its customers were broadly experiencing the same impact from cost inflation across the industries they service including automotive OEM, automotive aftermarket and aerospace.
McGarry did indicate that inflation may be peaking, saying, “We’re certainly seeing it start to level off. Not today, but we’re seeing the increases are coming fewer. We’ve had less force majeures in the products that we buy. We’ve seen it slow down in China, we’ve seen it slow down in Europe. So, we’re optimistic that if we’re not at a peak, we’re very close to it.”
McGarry explained demand remained very strong in its aerospace and the automotive aftermarket business.