anything, it is that companies that
can think in the shoes of their customers and offer solutions always get
stronger. To achieve this perspective
in powder, we need to improve the
working relationship with the equipment providers and pre-treatment
suppliers, as the customer is always
interested in the cost, quality and
performance of their coated part.
Collaborating to optimize OEM
brand needs, or the coater’s line and
efficiency will lead to enhanced profitability and growth. Furthermore,
material innovation cannot be done
in a vacuum; it must encompass the
pre-treatment and equipment being
used.
RESPONDING TO THE CHALLENGES
Like all others in this industry, Rohm
and Haas is feeling the effects of
weaker demand, and we will continue
to streamline our manufacturing and
cost structure in order to be more in
line with expected future demand. We
monitor our return on capital performance closely and have a number of capital plans (Capex and Working
Capital) to lower intensity as we work
our way through this reduced demand
environment. Yet, we are still actively
targeting growth in new applications
and markets to make up for a weaker
core demand. Profitable Share Gain
has been a key selling strategy for the
last one to two years. We have also
increased our go direct market strategy (France in ‘08, U.S. in ‘09).
Where we find conversions are
stalled (in Japan, and in the U.S. for
aluminum profiles) we are actively
engaged and working to shift business to powder. This is an ongoing
commitment and our motivation for
powder is not slowed by an alternative coatings choice. We are also more
active now in markets in Russia and
India where capital coatings line
decisions are made to ensure we capture a share of these opportunities.
Our biggest opportunity in the
near term is with the introduction of
new materials. Rohm and Haas
Company is a polymer design company, and we believe we are uniquely
qualified to leverage this expertise
with our powder formulating skills to
offer innovative new materials. As a
technology provider, we will marry
this effort with brand owner relationships to ensure we deliver needed
material innovation. During 2009 we
will launch materials with improved
corrosion resistance for the building
and consumer markets, materials
Powder-coated stairs. Photo courtesy of
Rohm and Haas.
requiring less pre-treatment, improved filiform resistant materials
for the wheels market, new clears for
the hardware markets, as well as
materials with added functionality in
the electronic housing space.
On the collaboration front, we
have reinvigorated our efforts with
some key partners to accelerate the
adoption of solutions for the brand
owners. Pre-treatment and equipment is an equal partner with materials in the pursuit of innovation for
our customers. Increasingly we see
this collaboration as also having positive sustainability benefits for our
customers.
Rohm and Haas has actively
invested in its powder business,
especially in R&D, over the last few
years, and believes this is the only
way to reshape the direction of the
powder industry for long term conversions and expanded profitability.
We are very encouraged about the
future possibilities and role of innovation as a continued driver of industry growth and profitability. CW
