Coatings World - June 2009

high-performance green buildings. Again this provides opportunities for our industry, and even for use of innovative technologies such as paints containing IR reflective pigments to reduce energy for basic cooling requirements in certain climates.

AGRICULTURE & RURAL DEVELOPMENT The Agriculture & Rural Development portion of the stimulus program is approximately $16 billion. Chemark estimates $80 million dollars will be spent on paints and coatings over the next three years. 74% of the total is ear-marked for rural housing where paint and coating materials will be a must.

OTHER AGENCIES

The National Park Service will use $750 million from the stimulus bill to preserve and protect national parks buildings and sites, improve energy efficiency and use of renewable energy at parks and will also use it to improve roads, and even remediate abandoned mines on park sites. All these involve as a minimum increased demand for paints and coatings over a variety of surfaces from steel to concrete to wood to asphalt, as well as other basic construction materials.

The Bureau of Reclamation, which provides water supplies and hydropower, will get $1 billion to fund water-reuse projects and to construct various water supply projects for rural and western localities. Among other construction materials, this will increase demand for coating systems approved for use in waste and water treatment, typically over both concrete and steel. Testing and approval to National Sanitation Foundation (NSF) requirements is needed for coatings systems that will come in contact with potable water. Existing suppliers with these approvals will obviously have an edge for any specifications requiring potable water approvals.

Source: Chemark

American Recovery and Reinvestment Act of 2009 definitely compensates for lost sales due to the recession. Investments in new construction, as well as maintenance, have increased significantly the near-term sales potential for paints, heavy-duty coatings, adhesives, sealants, composites and their basic raw material ingredients. Likewise, long-term investments in the basic U.S. infrastructure will also lead to additional long-term maintenance opportunities. Finally,

paints and coating will be employed in these projects towards the end and near the completion of them. However, getting specified in and otherwise positioned, it is critical to be active at the beginning.

Next month, in the second article of this two-part series, Chemark Consulting’s “Fast Track Solutions Team” will identify the coatings technologies most likely to benefit from stimulus-related spending and forecast the timing of segment growth. CW

CONCLUSION

This overview highlights additional demand growth opportunities for the specialty chemicals segment. The

CHEMARK FORMS “FAST TRACK SOLUTIONS TEAM”

Earlier this year, Chemark Consulting Group, Inc. formed its “Fast Track Solutions Team. Drawing on its global marketing and technical knowledge within the specialty chemicals industry, and combining it with Chemark’s methodologies in value chain analysis, strategic and tactical planning, decision-risk analysis and mergers and acquisition prowess, the Fast Track Solutions

Team is designed to bring immediate problem-solving capabilities to its clients. The team consists of Lynda Gordon, vice president, market analysis; Patrick

Jones, vice president, marketing and business analytics; Linda Marquez, vice president, global infrastructure systems; and Phil Phillips, president and managing director.