Innovation, Flexibility, and Collaboration – Key to Industry Success

By Cynthia Challener

Members across the entire paint and coatings supply chain faced numerous issues in 2018-raw material concerns, tariff threats, stricter environmental regulations, and talent shortages-all in the face of rising cus­tomer demands for even better perfor­mance. Many of the trends impacting the market in 2018 will continue to create both challenges and opportuni­ties for Tariffs have been a big topic of discus­sion throughout 2018, and this issue will remain a significant concern as 2019 arrives. “We haven’t seen a major impact so far, but that could easily change as we move into 2019,” notes Eric Dumain, North American commercial director for Arkema Coating Resins.

How they might affect the industry, negatively or positively, is yet to be seen. Even for a global player like AkzoNobel, paint is a very local product, according to John Griffin, regional director, AkzoNobel. “What we make in the U.S. is predom­inantly sold in the U.S. However, many of our customers operate in a global market, and so do their supply chains. So even though it is too soon to tell, new tariffs and trade agreements, such as a re-negotiated NAFTA, could impact , ingredient suppli­ers, distributors, and other contributors to the paint and coating value chain in 2019. In this article, we examine some of the topics raised during informal discussions with coating manufactur­ers and their suppliers, how they have impacted business this year, and what potential impacts they may have in 2019.