Annual survey: Concerns and confidence
An eventful year is over. For the paint and coatings manufacturers, the past year offered both opportunities and challenges. It is therefore not surprising that the annual survey by the European Coatings Journal shows a mixed picture.
The answers by the 20 companies surveyed range from good to sufficient when it comes to rating the past twelve months. Although some challenges are individually linked to the segment or region of activities, other challenges are the same for all of the entrepreneurs. Increasing raw material costs, which have already been a concern for the industry for year remain worrying. “Raw material prices are and will remain the number 1 topic in our industry for the foreseeable future”, underlines Dr Clemens Steiner of Tiger Coatings in Austria. Regulatory issues were also mentioned frequently during the survey. “EU-Directives will again be a challenge”, says Gérard Zoller of Peintures Robin for the upcoming year.
Uncertain times expected in 2019
This year, entrepreneurs are very hesitant to formulate forecasts for 2019. Too many uncertain factors play a role here. In addition to the costs, which continue to put pressure on margins, the majority of paint and coating manufacturers surveyed see a global economic slowdown as a potential danger. Naturally, the looming Brexit and the surrounding uncertainties also left a mark on the companies in the sector. “Brexit continues to dominate everything in this part of the world with continuing uncertainty a big negative to consumer confidence and spending”, says Kevin O’Connor of the Ireland-based General Paints Group. “The challenging geopolitical situation (sanctions against Iran, trade disputes between Russia and the USA, Brexit, crises in Turkey and the Middle East) makes predictions for 2019 particularly difficult”, underlines David Kubala of Kansai Helios in Slovenia.
Nevertheless, the participants in this survey are still confident to master the challenges ahead and seize chances for growth. The assessments and forecasts by twenty companies are part of the January issue of the European Coatings Journal.
