Coatings World - October 2011

Collisions have been trending down for years due to im-
proved safety features on vehicles and better driver education,
according to Vitor Margaronis, marketing director, BASF Auto-
motive Refinish North America. “The recent economic slow-
down has accelerated this trend by reducing the number of miles
people are driving,” he said. “This has led to an overall slow-
down in the collision repair industry causing the demand for re-
pair paint to decline. In Asia and high growth parts of Eastern
Europe, the opposite is true. Demand is increasing due to the in-
creased number of vehicles being sold.”
In the mature markets there is an overcapacity of collision re-
pair shops, which has led to a decreasing number of customers per
shop. “There is also a consolidation trend where multiple shop
operations (MSOs) continue to acquire smaller shops and in-
crease their market share,” said Margaronis. “As their enterprises
grow, they are better able to apply pressure on supplier pricing.”
Distributors are also consolidating, which also results in sup-
plier pricing pressures, Margaronis said. Government regulations
restricting products that emit potential air polluting substances
continue to emerge in North America and Europe, resulting in re-
vamped portfolios to meet these requirements.

This year has been challenging for the vehicle refinish market on a global level. “Supply chain disruptions and economic instability continue to put pressure on the customer base,” said David Brunori, executive vice president, general manager, Matrix System Automotive Finishes.

Raw material price pressure

Since late 2008, the auto refinish industry has experienced unprecedented increases in raw material costs. “These, coupled with consumer financial pressures, create a challenging environment from paint manufacturers down to the collision repair centers,” said Brunori. “These challenges will force paint manufacturers to become more efficient and expand into ROW markets. Increased demand for U.S.-based auto refinish coatings worldwide contin-

PPG launches Deltron DC2000

ues. Matrix System will continue to expand into these markets.” Raw material price increases will continue to be a challenge for refinish manufacturers moving forward. “Raw material price increases, sales controls on key materials and an occasional force majeure will continue to create a challenging environment to maintain price points and ensure product is delivered to the end user on time,” said Brunori.

Distribution consolidation will continue which will put pressure on smaller family-owned organizations that have been selling auto refinish paints for generations, says Brunori. “This trend will not slow down anytime soon,” he said.

Matrix System has grown from a small start up paint company to a well respected competitor in the auto refinish industry. “Our company has grown tremendously over the last 18 years because of our relationships with the small distributors and body shops,” Brunori said. “We are committed to this industry and strive to find answers to the challenges that are presented to our team.”

Innovation is the key to growth

Companies must constantly innovate in order to remain competitive in such a challenging market. Environmental legislation has been one of the driving forces for innovation in the auto refinish market.

“On the environmental side, more stringent VOC legislation
governing refinish products, supported by good corporate stew-
ardship, is incentivizing the industry to develop and promote
greener, more sustainable technologies, such as waterborne
basecoats,” said Outcalt. “Given that a major shift in refinish
technology is a fairly rare occurrence, the challenge is to educate
customers and assist them in making a smooth transition to these
new technologies without a disruption in productivity or a de-
crease in product performance.”
PPG is meeting the technology requirements of various leg-
islative challenges while improving product performance in al-
most all cases, says Outcalt. “The fact that our waterborne
basecoat technology represents a significant advance over sol-

PPG Automotive Refinish recenlty introduced DC2000 Ultra Velocity Clear with superfast air-dry capability to the collision center market. The new clearcoat is part of the PPG Deltron line of products.

DC2000 Ultra Velocity Clear is designed for use over Deltron DBC, Global Refinish System BC, and Envirobase High Performance basecoats.

PPG has taken clearcoat no-bake technology and advanced it to create a PPG clearcoat appropriate for any type of collision center—from high-production shops to the smaller operations without baking capabilities. DC2000 Ultra Velocity Clear will air dry in 20-25 minutes and it is very easy to apply and work with, the company said.

DC2000 Ultra Velocity Clear requires no flash time between coats and no baking in the refinish process, which optimizes spray booth utilization. Due to the extremely fast out-of-dust time, a vehicle can be removed from the booth in as little as 10 minutes.

The superfast air-dry capability of this wet-on-wet clearcoat facilitates fast cycle times for single-and multi-panel repairs. The new clearcoat also helps reduce energy costs with its ability to bypass the baking cycle.