Resins Market Update
The global economic downturn has slowed the demand for paint and coatings.
However, an increased demand for “green” products is one
bright spot for resin manufacturers.
BY KERRY PIANOFORTE
ASSOCIATE EDITOR
The global recession has had far
reaching consequences, impacting
housing starts, construction and
consumer spending. This economic downturn has slowed demand for paint and
coatings and as a result, resins.
“Whether you look at paint manufacturers, big-boxes or independent retailers, the market for paints is down, thus,
the market for resins is down as well,”
said Craig Mitchell, marketing manager for paints and coatings, Celanese
Emulsion Polymers. “Both the slow
economy and lower new home construction rates have impacted businesses
throughout the supply chain. In 2008,
we witnessed the downturn in the U.S.
and in 2009 we see that Mexico and
Canada are following closely behind.”
“The economic downturn has lowered
the housing starts and general construction activity in the U.S.,” said
Steve Wilson, marketing manager coatings, Eliokem. “In general, consumers
are controlling their spending much
more than in normal periods. Both of
these actions have led to a lowering of
demand for architectural coatings
which of course has lowered the
demand for resins that are used in manufacturing these coatings.”
The economic crisis has affected the
automotive, construction and consumer
markets in particular. “Production has
slowed substantially, and so the consumption of resins and additives has
slowed as well,” said Terry Scoville global marketing manager, liquid coating
and resins, Cytec Industries. “However,
innovation continues to be resourced
and funded. This has allowed suppliers
to capture new opportunities, and
strengthen their market position for
when the economy turns around.”
While, the economic downturn,
especially the sluggish housing market, has slowed the demand for paint
and coatings, Shruti Singhal, Rohm
and Haas group market manager for
field marketing, paint and coatings
materials North America said,
“Homeowners are finding that painting is a very economical way to freshen up the look of their homes and can
even make it more attractive to
potential buyers if selling is their
goal, while on the industrial side a
fresh coating will not only protect a
very valuable investment but will
also provide an attractive appearance and project a clean, quality
image to employees and the neighboring community.”
In addition to lowered demand, rising
raw material prices have had a huge
impact on resin makers. Resin makers
have had to carefully look at their manufacturing practices and develop methods to save energy and be more efficient
“In the past 18 months the industry has seen unprecedented volatility
in petroleum, feed stocks and raw
materials,” said Bud Equi global
marketing manager, liquid coating
and resins, Cytec Industries. “
Fortunately, Cytec and our customer
base are well informed of these conditions and work closely with each
other to find the best possible solutions. Our goal is to balance the
needs of all of our stakeholders.”
According to Mitchell, raw material
prices actually appear to be leveling off
in early 2009. “But, slower overall
demand means watching our production costs just like our customers, the
paint manufacturers,” he said. “As a
business who prides itself on controlling our internal costs, Celanese
Emulsions is optimizing its manufacturing and working even more closely
with our customers to forecast their
demand and ensure that we are meeting their needs in a timely manner.”
Rohm and Haas uses long-term efficiency and sustainability practices in its
manufacturing sites which allows significant improvements to be made in
plant operations as well as in environmental, health and safety performance,
according to Singhal. “Rohm and Haas
has also introduced products that allow
coatings formulators to manufacture
their coatings more efficiently and help
to save costs,” he added. “They are more
TiO efficient, have a lower coalescent
2
demand, and are more rheology modifier efficient. Rohm and Haas also offers
binders that can be used in a variety of
paint types, e.g. flats, sheen, and semi-gloss, allowing one binder to replace
two or three others.”
One way Eliokem manages rising
manufacturing costs is energy savings.
“In 2007 and 2008 Eliokem focused considerable efforts to manage energy costs
not only with environmental savings
but also financial,” said Wilson. “In 2008
Eliokem also won an Energy Saver
award from the U.S. Department of
