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European Coatings survey results: coatings industry under pressure
An exclusive European Coatings online survey shows that nearly all participating companies feel the effects of the ongoing raw material and energy crisis. While most firms are actively responding with stockpiling and supplier diversification, innovation activities are showing the first signs of strain. By Kirsten Wrede.
The coatings industry continues to navigate turbulent waters. An online survey conducted by European Coatings among industry professionals paints a clear picture: the combined pressure of raw material shortages and soaring energy costs is shaping day-to-day business decisions across the sector. With some 60 participants responding to the opening question, the results offer a representative snapshot of the current mood in the industry.
Nearly all companies are feeling the pinch
The survey leaves little room for doubt about the severity of the situation. A striking 67% of respondents stated that they are significantly affected by the current raw material and energy crisis in their day-to-day business, while another 29% reported being affected to some extent. Only a marginal 4% indicated that they are hardly or not at all impacted. In other words: 96% of participating companies are actively dealing with the consequences of the crisis.
Binders and solvents top the list of critical raw materials
When asked which raw material groups are currently particularly critical, respondents pointed to a broad spectrum of problem areas: Binders: 57%, solvents: 51%, titanium dioxide/ pigments: 41%, additives: 41%, specialty chemicals: 33%. Only 10% of respondents reported no critical issues with any of these raw material groups. The dominance of binders and solvents as bottleneck materials reflects well-known structural dependencies in the global supply chain, while the high share of additives and pigments shows that the crisis has spread well beyond a few isolated product categories.
Reaction: stockpiling and supplier diversification
The industry is not standing still. When asked how they are responding, respondents named a variety of measures – often in parallel: Building up safety stocks: 63%, qualifying alternative suppliers: 55%, qualifying alternative raw materials: 45%, adjusting formulations: 39%, adjusting the product portfolio: 31%. Only 12% have not yet taken any measures. The clear preference for safety stocks and alternative suppliers suggests that companies are prioritising short- to medium-term supply security. At the same time, the substantial share of firms adjusting formulations or even their product portfolio shows that the crisis is also triggering deeper strategic and technical changes in the industry.
Rising energy costs are a second major stress factor. According to the survey: 15% describe themselves as very strongly affected, stating that energy costs are jeopardising their profitability. 46% report a significant, noticeable impact on margins. 33% see the impact as moderate and manageable. Only 6% of respondents say that energy costs play a minor role or no role at all. This means that for more than six out of ten companies, energy costs are eroding margins or even threatening the bottom line.
Innovation: holding the line – but cracks are visible
Perhaps the most important question for the industry’s long-term competitiveness is how the crisis is affecting innovation activities. Here, the results are mixed: 51% report that innovation projects are continuing as usual. 29% say that innovation projects are being postponed. 7% each report increased R&D investment, cut innovation budgets, or no effect at all.
The fact that more than half of companies are maintaining their innovation pace is an encouraging sign of resilience. However, with nearly a third of respondents postponing projects and a further 7% cutting innovation budgets outright, there is a real risk that the current crisis will leave a lasting imprint on the industry’s innovation pipeline – particularly in areas such as sustainability, bio-based raw materials, and low-VOC technologies, where continuous development is essential.
Conclusion: resilience under strain
The survey results make clear that the European coatings industry is under considerable pressure on two fronts simultaneously: constrained raw material supplies and high energy costs. Companies are responding pragmatically – building buffers, diversifying suppliers, and adjusting formulations – but the strain is beginning to show in innovation activity, which is the sector’s engine for future growth.
