FEATURE
Kerry Pianoforte, Editor
Automotive refinish manufacturers Coatings World in- terviewed generally expressed optimism for the market, citing ample opportunites for growth.
“Overall, the global automotive refinish market is stable to grow- ing,” said Danielle Ruess-Saltz, Axalta’s Global Refinish spokes- person. “China’s refinish market has shown continued growth
in the high-end car segment, growing faster due to higher incomes
and increased investment in the sector. The Indian refinish coating
segment has also experienced double digit growth and we expect
that our strong brands and diverse product range will attract and
retain customers. We’ve also experienced strong growth in Latin
America. In the U.S. and Canada, Western Europe, Australia and
New Zealand we have seen an increased focus on paint efficiency as
well as paint and materials profitability in body shops.”
“As light vehicle OEMs continue to introduce new substrates
and technology that require special equipment and formulations
to repair, the complexity of the painting process increases,” add-
ed Ruess-Saltz. “This trend has resulted in a greater focus on
providing advanced technical training to our customers. Axalta
is increasing the number and scope of training classes with more
on-demand content so that when customers attend a class they
get more booth time, which is practical experience.”
While the challenges posed by decreasing accident rates,
higher rate of ‘totals’ and lower miles driven continue to affect
volume growth in the mature NAFTA and Western European
markets, PPG said it experienced a robust uptick over the past
year. “This is due in part to the rebounding economy, as well
as the growing acceptance of our waterborne basecoat technol-
ogy, especially in North American regions not yet governed by
more stringent VOC regulations,” said John Outcalt, PPG vice
president, Global Refinish. “Asia, with its continued commercial
growth and increased car parc, continues to be a bright spot for
refinish. The China market is particularly strong as we are ben-
efiting from double-digit growth there. Weaker ROW markets
include Australia and Brazil where their economies continued to
be challenged with growth.”
David Brunori, president of Quest Automotive Products said
the current state of the auto refinish is in flux, owing to a num-
ber of factors. “Change is touching all aspects of our industry
at the global level,” he said. “Technology, regulatory and the
consolidation of manufacturers and distributors are accelerat-
ing at a pace we have never seen before. This change also creates
opportunity for organizations who are nimble and willing to
adapt when others cannot or won’t.”
Brunori said that this changes are ideal for Quest Automotive
Products. “Our culture is entrepreneurial and we have global
distribution and expertise that allows us to seize opportunities
created by change. For example, in the European market, senti-
ment is shifting towards ‘free to choose’ brands, like Matrix and
Prospray. Because of this, we’ve increased efforts in the EU and
simultaneously improved the repairer’s bottom line while significantly increasing our business in those areas. In North America,
daily news outlets publish stories on consolidation and our industry is acclimating to change. This shift in mind set means
that repairers are open to new solutions - QAP is that solution.”
Brunori said there are five main trends in the North American
refinish market: consolidation (at all levels), overcapacity, advanced materials, insurer compensation and the workforce.
“Consolidation: every day we hear about a new merger or
acquisition,” said Brunori. “The industry channels are evolving.
The auto refinish market is impacted by a variety of factors
including VOC legislation, lack of market growth, increased
complexity and collision center consolidation.
The
Auto Refinish
Market
