Construction-related businesses are facing rising material costs as oil supply disruptions tied to the closure of the Strait of Hormuz continue to ripple through the global economy, driving up the price of paint and related products.
In Cincinnati and across the Tri-State region, small contractors say the price increases are already impacting operations, forcing them to adjust pricing and absorb tighter margins.
Pablo Pedraza, owner of Pablo’s Painting, said the ongoing conflict involving Iran has significantly increased the cost of paint in recent weeks.
“A not very good paint was like $25, now it’s up to like $35, $40,” Pedraza said.
The rising costs are closely tied to crude oil’s role as a key ingredient in paint manufacturing. Oil derivatives are used in thinners, resins and other chemical components that make paint usable and durable.
As oil production and distribution have slowed due to the Strait of Hormuz disruption, supply shortages and higher crude prices have translated directly into increased production costs for paint manufacturers.
The impact extends beyond raw materials. Higher fuel prices are also raising transportation costs, further contributing to overall price increases for construction-related supplies.
Pedraza, who has been running his business for about a year and a half, said the economic strain is particularly difficult for smaller firms.
“Wars can do a lot of damage. Especially to small companies like us,” he said.
As prices climb, contractors are left with limited options. Many are being forced to pass increased costs on to customers, even as they try to remain competitive in a challenging market.
“As a small business, it affects us a lot. Our prices go up as well as the paint. We have to. It’s not that we want to, we have to,” Pedraza said.
Despite the pressure, Pedraza emphasized that he is not inflating prices beyond market rates. “If the paint is $30 for me, it’s $30 for the customer. I don’t charge them above market,” he said.
The broader market is also reflecting the strain. Major paint manufacturers, including Sherwin-Williams, PPG Industries and RPM International, have seen stock declines following the onset of the Iran conflict, signaling investor concerns about rising input costs and supply disruptions.
According to the U.S. Department of Energy, crude oil is used in the production of at least 161 different products, underscoring its critical role in construction materials and industrial supply chains.
As geopolitical tensions continue to disrupt energy markets, contractors and small business owners are bracing for continued volatility. For many, the challenge will be balancing rising costs with customer expectations in an already competitive environment.
Originally reported by Brady Williams in Fox 19 News.
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