Earlier this month, industry leaders and stakeholders from across the world of paint and coatings gathered at the European Council of the Paint, Printing Ink, and Artist’s Colours Industry (CEPE)’s annual conference in Copenhagen.
In such an uncertain and turbulent time both economically and politically, it’s no wonder the event was abuzz with business leaders discussing the many challenges the industry faces – as well as ways it can rise to the occasion.
After attending some incredibly insightful panels and a series of engaging conversations with colleagues and senior leaders across the industry, here's what I think are the five key insights driving the industry's actions over the next 12 months.
In the last few years, the global economy has been hit by one shock after another. Sadly, the short-term outlook isn’t optimistic for the European coatings market, where sales are generally falling short of expectations.
This is partially because consumer paints remain slow to sell in the ongoing cost of living crisis. When people’s pockets take a hit, redecorating their homes falls far down the priority list. The same holds true in automotive refinish – if you can’t pay your electric bill, you aren’t likely to shell out to fix a scratch on your car.
In contrast, the most secure segments of the industry will include marine, protective and industrial. These coatings are protecting vital assets, from oil rigs to ships – and the more expensive the infrastructure, the less short-term macroeconomics influence buying decisions.
As the climate crisis continues to hit global headlines, environmental awareness is increasingly driving the purchasing decisions of both consumers and businesses. Caught in the middle of this culture shift, it’s time for the coatings industry – dependent on harmful solvents – to revamp its reputation on sustainability.
The industry is taking steps to reposition itself by moving away from a narrow view of what paint ‘is’, to a bigger-picture view of what paint ‘does’. Simply put, coatings make our world more sustainable by helping infrastructure and buildings last longer, reducing the need to build new ones at an immense carbon cost. Seen through this lens, coatings can help enable the sustainable revolution, rather than standing in its way.
Often, the coatings industry – and it’s far from the only one – fails to pay any attention to EU regulation until it’s too late. By the time it finally sits up and takes notice, the EU has already made a decision and agreed on the precise wording of the regulation, by which point the industry can only make a stand through the appeals process.
Yes, the amount of regulation aimed at the industry can be overwhelming, but there’s no way to avoid it – these changes have a real impact on what goes on in the factories every day.
Instead of fighting regulation at the last moment, coatings companies need to stay ahead of what’s coming down the track, and work with national and international bodies to lobby around policy from its inception. Only then can we shape regulation into what works for us.
The biggest concerns among the industry – based on a poll of conference attendees – aren’t surprising. The first up is sticky inflation leading to slower than expected medium-term growth.
Then there’s the challenges of navigating the ever-evolving regulatory market. This is especially tricky for smaller coatings manufacturers – if it’s difficult for huge corporations with immense resources to stay ahead of the game, it's nearly impossible for small businesses. But, on a more positive note, the industry’s strong and highly engaged national organisations means they don’t have to go it alone.
These days, it’d be nearly impossible to attend an industry conference without hearing the words artificial intelligence at some point. Around half of major European coatings manufacturers have already begun re-organising business activities to incorporate AI, leading to huge efficiency gains in some cases, such as a 94% decrease in the time it takes to manage customer requests. One question that springs to mind is, how long will it be until the first AI-formulated coating hits the market?