CEPE Annual Conference: Facing challenges and changes
By Damir Gagro
The 2017 figures which managing director Jan van der Meulen presented for the European market showed that most segments were “developing nicely”. Domestic sales of protective coatings went up (+2.6 %) in volume terms, while powder coatings increased by 6.7 % and even marine coatings grew (+8.3 %). Can and coil coatings, as well as vehicle refinishes also rose year on year. However, the market for decorative coatings fell by -1.5 % while the automotive OEM coatings segment too posted a negative performance (-6 %). According to van der Meulen, smaller countries across Europe outperformed the larger ones such as Germany, Italy, France and the UK.
Looming Brexit remains a concern
A major concern for the European coatings industry is the looming Brexit on account of the changes and challenges it will bring. For CEPE President Dr. Harald Borgholte, Brexit and the treatment of member companies from the UK will be a crucial issue in the coming months.
Oliver Kamm of The Times newspaper addressed this topic as well in his presentation on the economic climate within the EU. Kamm believes there are large risks to the world economy in the medium term, given the rise of protectionist policies in the US, the consequent threat of a trade war between major economic blocs, the continuing risk of a sovereign debt crisis in emerging economies with large external debt, and the opaque consequences of Brexit.
Legislative issues are challenging the industry
Legislative issues remain a challenge for the industry and hence the association will have to put a lot of work into these topics. The most urgent remains the possible classification of titanium dioxide. Meanwhile, the European Commission is working on a proposal under which mixtures, such as paint, would be exempted from classification. Any decisions by the authorities are not expected to be communicated before the end of this year. Other pressing issues are biocides and microplastics.