Important Market Trends Impact the Industry in 2016 Trends

By Cynthia Challener

Regionally, there have been significant dif­ferences in the performance of the coatings industry, and the outlook is expected to remain variable into 2016. China’s growth rate has slowed, but remains positive. Brazil’s economy has also softened, affecting all segments of the coatings market, and a return to growth is not expected in the near future, according to Michael T. Venturini, global marketing manager for Coatings with Sun Chemical Performance Pigments.

In particular, there has been a sig­nificant reduction in new vehicle demand in both Brazil and Russia in 2015, and the outlook continues to remain uncertain in the near to medium term, according to Rajeev Rao, vice president of strategy and planning for Axalta Coating Systems. “The health of the economies in Brazil and China impact the demand for both raw materials and finished products, and the current situation in these two countries has created a level of uncertainty that impacts the demand for product and ultimately the share price of stocks publicly traded on the world stock exchanges,” notes Jeff Cayce, a global market segment leader for Eastman.