The world is currently in the biggest oil supply chain disruption since the 1950s, CNBC reports. The most obvious evidence of this lies in gas prices, which have jumped 20% since the middle of March. The window film industry may also feel these effects, and not only because of gas prices.

CNBC reports that oil distribution slowed due to the current U.S.-Iran conflict, which has disrupted passage through the Strait of Hormuz, a major oil shipping route. According to Reuters, the world is losing up to 20 million barrels of oil a day, causing energy, fertilizer and petrochemical prices to skyrocket. It’s that last element, petrochemicals, that impacts the window film industry the most.

Conflict in the Middle East has made freight costs significantly more expensive.

Multiple manufacturers list polyethylene terephthalate (PET) as a primary component of most window films. PET is a petroleum-based product, and petroleum, in turn, is derived from crude oil.

If PET prices do increase, how exactly will that affect manufacturers? Will those effects trickle down to dealers? WINDOW FILM magazine spoke with several film manufacturers to find out. The manufacturers interviewed requested anonymity.

Who Absorbs The Cost?

“We are seeing upward pricing pressure from suppliers, particularly tied to petrochemical inputs impacted by the conflict,” says one manufacturer. “As existing contracts expire and renew, these increases are being passed through to [the manufacturer] in some cases.”

The manufacturer’s top goal is to prevent those “cost pressures” from impacting customers.

“We absorbed the majority of the impact with last year’s tariff increases, and we will continue to do our best to mitigate and absorb as much of these costs as possible,” says the manufacturer’s spokesperson.

While there may be issues with the global supply chain, the spokesperson says it shouldn’t noticeably affect them.

“Our supply chain teams have taken proactive steps to increase order volumes, deploy additional capital into work-in-progress inventory, and ensure that our suppliers continue to deliver on time,” the spokesperson says, adding that the company is also prioritizing “consistent availability” for dealers.

“We do not anticipate any supply issues; however, we will need to work diligently to further build on-hand inventory, even if it requires paying a premium in the short term, or until market conditions stabilize,” the spokesperson says.

Transportation Costs

Another manufacturer’s facilities are far enough away from the conflict that its spokesperson doesn’t anticipate any supply chain issues when getting film to dealers. Getting oil and petroleum to those manufacturing facilities, on the other hand, is definitely more difficult and expensive than normal.

“The cost of freight has gone up, both by cargo ship and plane,” the spokesperson says. “There’s also some concern about [business or transportation] insurance prices potentially increasing because of the danger of hauling freight through that area.”

The manufacturer hopes to absorb as much of the increased materials and shipping costs as possible.