MARKET CLOSE UP
SPECIAL ISSUE ON AUTOMOTIVE
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Sherwin-Williams, Axalta, Tiger Drylac and Europolveri. Organic market growth was predicted to wane over the next two to three years. U.S. manufacturing had hit a ten year low in September 2019 due to lower consumer demand and the uncertainty caused by Trump’s trade war with China. Some experts, me included, foresaw an economic recession on the horizon. In addition, scant market growth was expected in the automotive market. OEMs had committed to waterborne technologies and the “compact” process which neither entail any use of powder coatings. Slow growth that tracks overall automotive production was expected to occur in under-the-hood applications and alloy wheels. As we all know, the world economy came crashing down at the onset of the coronavirus. The rebound, however, has varied depending upon how each region and country fared in fighting
Kevin Biller.
the pandemic. China instituted an aggressive and draconian shutdown and emerged remarkably quickly. As the rest of the world struggled with containing the virus, China experienced
2 0 ye a r s
an unprecedented “V-shaped” economic recovery. Globally the industry saw an overall growth rate of 17% in Q1 2021 versus Q1 2020, however it was mainly due to a spectacular 23% expansion in Asia. Europe rebounded with a 6% growth tally; however, North America has only experienced a meagre growth rate of 1.5% versus Q1 2020.
Competence in Shot Blast Technology
What are the sector’s current priorities, in general, and from a legislative point of view, in particular, in the US? Current priorities in the US and much of the rest of the world centre around meeting current customer needs in light of raw material price increases, continuing supply chain disruptions and exorbitantly long lead times. Key raw materials are in short supply due to plant shutdowns around the world, a scarcity of chemical building blocks due to the February freeze in Texas and the Gulf Coast and a dearth of shipping containers to move product around the world. Legislation has been hinted at by government regulators nothing concrete has emerged in the last year. TGIC (Triglycidyl Isocyanurate), the polyester curing agent aggressively regulated in the EU, remains off the EPA’s list of Chemicals of Special Concern, therefore no active legislation is anticipated in the near future. Interestingly, TGIC is in short supply due to the shutdown of a couple of Chinese production facilities. This has created a new demand for HAA (hydroxy-alkyl amide), an alternative curing
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agent commonly used in Europe.
international PAINT&COATING magazine - MAY/JUNE 2021 - N. 69
303-01/21-4c-GB
regarding titanium dioxide and BPA (Bis-Phenol-A), however
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