Viking Plastics CEO Shawn Gross warns that rising petrochemical costs will force aggressive price increases on customers, with implications for everything from automotive parts to food packaging. Wholesale plastic resin prices surged 14% to nearly four-year highs as the Iran conflict disrupted supplies of essential components used across manufacturing.

Gross, whose company supplies Ford Motor Co. and sources from Dow Inc., reports polyethylene input costs have jumped over 40% this year. While US petrochemical plants initially avoided the worst impacts by using ethane from shale gas rather than naphtha-dependent processes, Asian and European competition for supplies is driving shortages stateside.

Companies are already feeling the strain. Edward Dominion of D6 Inc. says raw material costs have doubled alongside freight expenses, with buyers receiving only 70% of needed resin and lead times stretching three months. Fresh-food packaging faces the first impact, potentially causing shelf gaps by August and September as costs cascade through supply chains.

Major retailers including Costco Wholesale Corp., Lowe's, and Whirlpool Corp. have flagged rising resin costs in earnings calls, warning of inflationary pressure in non-food categories. With consumer prices already up 4.2% in May and household savings depleted, these supply chain disruptions pose political risks for Republicans ahead of midterm elections.