EU Coatings Companies’ Outlook
Generally Bullish for the Near-Term
Despite economic
forecasts of
relatively slow
growth in the EU,
there is still a lot
of optimism in the
coatings sector.
by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
After a slowdown in demand in the sec- ond half of last year in many parts of Europe, coatings companies in the
region have become less confident about the
short-term future.
However, despite economic forecasts of relatively slow growth in the European Union, there
is still a lot of optimism in the coatings sector,
particularly among larger producers which are
active in higher growth markets outside Europe.
European demand is expected to pick up later
this year and then start to accelerate more strongly
in 2016, according to figures from the European
Commission, the Brussels-based EU executive.
Faster growth through to next year is being
predicted in Germany, Europe’s largest coatings
market. The GDPs of France and Italy, two
other major economies, are also expected to
continue to recover.
Also, low inflation and an easing of the
money supply by the European Central Bank
(ECB) should help to boost EU business investment, which would be good news for industrial
coatings suppliers.
The German Paint and Printing Association
(VdL), Frankfurt, is forecasting a 1.3 percent
decrease in coatings output this year. But is expecting an upturn in the second half of the year
mainly due to low inflation, which will stimulate both investment and consumption, and rising demand across the EU.
The output decline, likely to take place
mainly in the first half of the year, is a continuation of a slowdown in the domestic market
since the middle of last year when the VdL
was expecting a three percent increase in production in 2014.
