How does PPG plan to offset mid-single-digit cost inflation from the war in Iran?

PPG plans to fully offset mid-single-digit cost inflation in its cost of goods sold (COGS) through proactive price increases and targeted surcharges—particularly for diesel and European energy costs—while leveraging its global supplier network, scale-driven raw material negotiations, and product reformulation flexibility to maintain performance without raising costs. CEO Tim Knavish stated, 'Based on today’s operating environment, net-net, we need to get solid low single digits to offset mid-single-digit COGS inflation,' and affirmed the company expects to 'fully offset these costs.'

Why is PPG’s current response to cost inflation faster than in previous cycles?

PPG’s current response is significantly faster—measured in months rather than years—due to enhanced agility built from prior experiences: it took about a year and a half to catch up during the 2017–2018 inflation cycle and about a year after the combined impact of the COVID pandemic and Texas freeze, whereas now the company is acting within months, enabled by its global presence, scale, supplier diversification, and operational flexibility including rapid pricing and reformulation capabilities.

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US PPG expects to keep up with rising costs

Apr 29, 2026

PPG plans to raise prices to offset mid-single-digit COGS inflation driven by rising raw material and energy costs linked to the war in Iran. The company expects to fully cover these costs through proactive pricing and surcharges within months.

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