Please wait.'

Page is loading'


Home  > Markets & companies  > Coatings market  > Value chains in the coatings industry in t...

Monday, 16 September 2019
pdf
Markets & companies, Coatings market

Value chains in the coatings industry in the light of cooling down of global economy

Friday, 16 November 2012

A variety of market analysts and consultants presented current research results at ICIS' conference "Value Chains in the Coatings Industry" on 15-16 November 2012 in Berlin. Although they differed quite significantly in their specific forecasted volumes, the trend was all too clear: The global economy is expected to cool down, and for Western Europe it is quite certain that a difficult phase lies ahead.

Consultants, associations, raw material and coatings manufacturers gave their views on the changing value chains in the coatings industry.

Consultants, associations, raw material and coatings manufacturers gave their views on the changing value chains in the coatings industry.

In his presentation on the global economic outlook and its impact on the chemical industry, Kai Göbel, Director of Deloitte & Touche, made it quite clear that with the expected moderate demand (GDP in the US & EU below 1 %, China probably below 8 %), it will be difficult for EU's economy to stay competitive, as it will face a cost disadvantage in production due to higher energy prices compared to US and China. Looking at customer preferences, Göbel pointed out that materials suppliers have achieved an increasingly lower performance during the past years than the companies who offer "systems".

Looking into Asia Pacific's paints and coatings market outlook, Dr Brian Balmer, Frost & Sullivan, pointed out that within the Asian growth of 7.3 % in 2012, one should take into account that the ASEAN-5 (Philippines, Indonesia, Malaysia, Thailand and Vietnam) are gaining importance along with China and India.

One trend that Paul Blunt, Valspar Automotive UK Ltd. highlighted was that although the car-park of ageing vehicles is increasing every year, the standard crash repair volumes are reducing. Instead, the rate of the so-called SMART, same day and Micro repair is growing, where less paint is needed than for standard repairs.

Spelling "BRIC" from the perspective of AkzoNobel, Jennifer Midura, Director of Corporate Strategy and M&A, explained that Brazil showed a very interesting development, while the global player is acting rather cautiously in Russia, where it competes with strong peers from Germany & Brazil. In India, Akzo's business is developing very well but due to the strong local manufacturer Asian Paints, even the powerful Group from the Netherlands does not achieve an ideal competitive position there. In China, finally, Jennifer Midura stated that Akzo sees a bigger downtick than in Brazil, which leaves Brazil as the most interesting market.

Read the full report about this conference in European Coatings Journal 12/2012.

top of page
Comments (0)
Add Comment

Post comment

You are not logged in

register