Coatings SA December 2020

Issue 4 | Volume 8 | 2020

Brave - Dulux announces Colour of the Year

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AND INDUSTRIAL TRADE NEWS

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Warrior weathers storm for nearly 3 decades

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Time for Coatings Industry to take charge

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JOHANNESBURG: 011 452 0223 | DURBAN: 031 702 9234 | info@lejn.co.za | www.lejn.co.za Service Centres in CAPE TOWN - PORT ELIZABETH - EAST LONDON - BLOEMFONTEIN

EDITORIAL EDITOR Johann Gerber Tel: 011-713-9042 Email: johann.gerber@newmedia.co.za SUB EDITOR Gill Abrahams Email: gill.abrahams@newmedia.co.za LAYOUT & DESIGN Kyle Martin Email: kyle.martin@newmedia.co.za ADVERTISING ADVERTISING EXECUTIVES Natalie Sanders Tel: 082-450-2317 Email: natalie.sanders@newmedia.co.za

ontents Issue 4 | Volume 8 | 2020

PHOTOGRAPHS

Unless previously agreed in writing, Coatings SA owns all rights to all contributions, whether image or text.

SOURCES Shutterstock, supplied images, editorial staff.

DISTRIBUTION & SUBSCRIPTIONS Felicity Garbers Email: felicity.garbers@newmedia.co.za UPDATE YOUR DETAILS HERE Email: register@media24.com Web: www.diytradenews.co.za PUBLISHING TEAM GENERAL MANAGER Dev Naidoo

News: Paint industry urged to take charge of its future

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News: All systems go for Coatings for Africa 2021

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Feature: Warrior has weathered the storm for three decades

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Feature: Rust-Oleum now part of world-renowned group

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Interview: Guy Lawson from Excelsior Paints speaks to Coatings SA

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PUBLISHING MANAGER Johann Gerber Email: johann.gerber@newmedia.co.za PRODUCTION MANAGER Angela Silver ART DIRECTOR David Kyslinger MANAGEMENT CEO NEW MEDIA Aileen Lamb COMMERCIAL DIRECTOR Maria Tiganis BRAND STRATEGY DIRECTOR Andrew Nunneley CHIEF FINANCIAL OFFICER Venette Malone CEO: MEDIA24 Ishmet Davidson Head Office: New Media, a division of Media24 (Pty) Ltd New Media House, 19 Bree Street, Cape Town PO Box 440, Green Point, Cape Town 8051 Tel: +27 (0)21 417-1111 Web: www.newmedia.co.za

Johannesburg Office:

Ground floor, Media Park, 69 Kingsway Avenue, Auckland Park, 2092 Postal Address: PO Box 784698, Sandton, Johannesburg, 2146 Tel: +27 (0)11 877-6111 Fax: +27 (0)11 713-9024

PRINTING Printed and Bound by CTP Printers Cape Town Published on behalf of New Media, a division of Media24 (Pty) Ltd

While precautions have been taken to ensure the accuracy of its contents and information given to readers, neither the editor, publisher, or its agents can accept responsibility for damages or injury which may arise therefrom.

All rights reserved. © DIY Trade News. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, photocopying, electronic, mechanical or otherwise without the prior written permission of the copyright owners.

Aggie Argyrou, Tara Benn, ed’s note Sanjeev Bhatt, Deryck Spence – the unsung heroes of 2020!

What an incredible year has passed – from the anxious months of March and April to sales records in the second half of the year. It has been one of the scariest rollercoasters in recent memory.

No business has endured what the global business sector has experienced in 2020.

Among the many concerns of 2020, top of mind is the fact that the majority of companies within the coatings sector experienced their first ever zero turnover months in their histories and the recovery from the limited opening of the coatings sector from 1 May 2020 has seen record months for large parts of the industry.

And from my interview with Aggie Argyrou, chairman of SAPMA, featured on page 24 of this issue, there are more reasons to be optimistic about 2021 and 2022.

But this optimism would not have been possible, if it was not for the tireless work during the hard lockdown in March and April by

four of SAPMA’s heavyweights – Aggie Argyrou, Tara Benn, Sanjeev Bhatt and Deryck Spence.

We owe them an incredible amount of gratitude for the daily lobbying Johann Gerber to ensure the coatings industry could start trading from 1 May 2020, even though in limited capacity. It was the turning point in 2020 for the largest part of our industry.

We salute you!

The tireless efforts from Sanjeev Bhatt, Deryck Spence, Tara Benn and Aggie Agryrou to ensure a limited opening of the coatings industry on 1 May 2020 must be applauded.

news

Wacker expansion doubles capacity Wacker’s Nanjing expansion will more than double its production capacity there, enabling it to meet growing customer demand for its high-quality binders, particularly from China’s buoyant construction industry.

“

China is the largest building market in the world, accounting for 20% of all construction investment.

Our capacity expansion in Nanjing strengthens our position as the global leader for vinyl acetate-ethylene dispersions and polymer powders,” notes Rudolf Staudigl, CEO of Wacker Chemie AG, as he explains the reasons for the investment.

“Our binders not only enhance the properties of building materials, but also make construction activities more resource-efficient,” adds Paul Lindblad, president of Wacker Greater China.

“Ongoing urbanisation and the need to renovate existing residential buildings continue to drive the development of environmentally-friendly dry-mix building materials in China. Nanjing’s expanded capacities will enable us to securely meet future market growth in the region.”

Dispersions and dispersible polymer powders from the company are used in such sectors as construction, paints, coatings and adhesives – for example, for formulating high-quality tile adhesives, energy-saving external thermal insulation composite systems,

Wacker’s expansion in China will help it meet the demands of one of the world’s largest building markets in the world. Credit: Shutterstock and low-odour low-emission interior paints. They also find application in paper coating and in carpets and textiles.

At its fully integrated production site in the Nanjing Jiangbei New Material High-Tech Park, it manufactures VAE dispersions, dispersible polymer powders and polyvinyl acetate solid resins. Polyvinyl acetate solid resins, marketed under the trade name VINNAPAS®, are used as binders or as

The British Government is being urged not to alienate it from the EU. An aerial view of the city of Nanjing, China. Credit: Shutterstock

4 | Coatings SA

additives, for example, in adhesives, sound-damping sheets or as lowprofile additives.

Bundling its Chinese polymer activities at one site creates synergies, since shared infrastructure, raw-material sources and energy supplies enable economies of scale. In addition, this approach makes transport and logistics especially efficient.

WACKER POLYMERS Wacker Polymers is a leading producer of state-of-the-art binders and polymeric additives based on polyvinyl acetate and vinyl acetate copolymers.

These take the form of dispersible polymer powders, dispersions, solid resins and solutions. They are used in construction chemicals, paints, surface coatings, adhesives and nonwovens, as well as in fibre composites and polymeric materials based on renewable resources. It has production sites in Germany, China, South Korea and the USA, as well as a global sales network and technical centres in all major regions. c

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news

Paint industry needs to take charge of its future!

by Dr Ivor Blumenthal, facilitator of the Surface Coatings Association (SCA) and consultant to SAPMA

If you are a paint manufacturer or supplier, and also a member of the Surface Coatings Association (SCA), then you will know that, from 1 July 2020, you needed to increase what you pay your employees by 6.5% as the minimum monthly wage was increased from R7 573.80 to R8 066.10.

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he Surface Coatings Association (SCA), was a founding employer association of the National Bargaining Council for the Chemical Industry (NBCCI). If your company is currently a member of the SCA, this means that you have agreed to abide by what was initially an annual agreement negotiated between the employer associations in the NBCCI and five trade unions every year. Since 2019, the agreement became a multi-year agreement lasting for two years, and it is currently being renegotiated for July 2021.

If we therefore expect at least another 6.5% increase from 1 July 2021, that means you will have no choice but to pay your employees a minimum of R8 590.40 each per month.

Besides regulating wages and conditions of employment, as a sector, you collectively agreed to create the NBCCI to avoid being subjected to arbitrary mediation and arbitration decisions by the CCMA and because you wanted, together with the trade unions, to regulate and manage your own employment relationships on a sectoral basis. In this instance, we refer to the Industrial Chemical Sector, which is one of four allied sectors for which the NBCCI caters. A primary service of the NBCCI being used is that for dispute resolution – most of these come from the trade unions which are parties to the Council.

The Bargaining Council is now a voluntary structure and its agreement only applies to you if you are a member of the SCA. So, if you are a paint manufacturer or supplier, and not a member of the Surface Coatings Association, then any dispute which you are involved in with your employees or with trade unions would continue to be referred to the CCMA and not the Bargaining Council.

However, by 2023 it is likely that the parties to the NBCCI will have applied to the Minister of Employment and Labour, to extend the Bargaining Council Agreement to apply to nonparties in the paint and coatings sector. This means that if you are a paint manufacturer or supplier who is not a Surface Coatings Association (SCA) member now, if the agreement is indeed extended to non-parties you will automatically be subject to the directives of the agreement in terms of pay levels, job grades and other conditions of employment.

Unfortunately, however, you will not have the benefit of being represented at the Bargaining Council and will not have any influence on wage or salary rates, or agreements on conditions of employment reached by that Bargaining Council.

This is why SAPMA is determined to receive a mandate from its members to register independently of the SCA as an employer association with the

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Department of Employment and Labour (DE&L). Once that status is achieved, SAPMA will be able to apply to the NBCCI (strategically timed before the NBCCI applies to the DE&L to extend the agreement), to be a party representing small and medium manufacturers, suppliers and coatings retailers and requiring a special SMME dispensation by the NBCCI prior to the extension of any agreement to non-parties.

SAPMA, additionally, intends – in association with the SCA – to set up an Alternative Dispute Resolution Forum (both to the CCMA and to the NBCCI) for its members for both mediation and arbitration services to be offered by trained and certified mediators and arbitrators from within paint and coatings manufacturing, supply and applications. This is to ensure that where disputes occur, commissioners are seasoned not only in process but also in understanding both the competency and behavioural issues which regularly arise within the sector and which can then be addressed within such a forum.

If you are an SCA member, strategically, you need to decide as a paint manufacturer or supplier whether these levels of wages, salaries and increases are sustainable for you, and whether you have options available to you besides applying every year to the NBCCI for exemptions from the main agreement?

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news Choices available to you include: • Remaining as a member of the Surface Coating Association and thereby subjecting yourself to the Main Agreement for Industrial Chemicals • If you are currently an SCA Member, resigning from the SCA and therefore implementing a plant-level bargaining relationship with trade unions currently present at your workplace. Of the initial 17 SCA members, two companies have in fact resigned and have reverted to plant-based bargaining and to the CCMA for dispute resolution • If you are not a member of the SCA, then waiting for the Minister of Employment and Labour to extend the NBCCI Agreement to non-parties and at that stage to implement the NBCCI’s Industrial Chemical Main Agreement, or benefit from SAPMA Membership as your employer association represented at the NBCCI.

(consisting of the chairperson, vice chairperson, labour representative and treasurer) and determining the relationship with the NBCCI going forward.

Of major concern to all stakeholders in the sector is the absence of sound and reliable research and therefore realtime and reliable trading information relating to legal and illegal imports, manufacturing and processing, supply chains and market activities.

Importantly a rarely researched issue is the impact of the current legislative and regulatory frameworks on companies in our sector.

This is why SAPMA will next year embark on a significant set of research activities, to be conducted both on a provincial and national basis, to be able to satisfy the requirements of the Department of Trade and Industry,

the Department of Labour and also Education and Training and, importantly, the Department of Finance.

The NBCCI bases its membership assumptions about the industrial chemical sector, and hence SCA and SAPMA membership on information available from Stats SA. But previous SAPMA research is massively out-ofdate, which makes the need to prioritise the reformulation of SAPMA’s research agenda imperative.

A FINAL OBSERVATION SAPMA members who willingly subject themselves to become the victims of a non-party extension decision by the minister of Employment and Labour to extend the National Bargaining Council for the Chemical Industries Main Agreement to non-parties, cannot blame the associations and trade unions which are party to the NBCCI for this decision or its impact on their businesses.

Every CEO of every paint manufacturing and supply business in South Africa now needs to take responsibility for becoming informed and mandating the right set of representatives to fight for their interests and properly articulate their case, so that when new agreements are reached and when new laws and regulations are agreed to, they have a say at that negotiating table! c

The matter of the SCA’s continued involvement within the NBBCI and therefore on-behalf of coatings, paint manufacturers and suppliers generally will be discussed at the upcoming AGM of the Surface Coatings Association being held in November 2020. SCA Members have the responsibility of activating the SCA Constitution for 2020/21, electing an incoming Executive Committee

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Paint retailers need skills as well as products Paint retailers can now undertake online training to acquire the technical and application expertise needed to provide professional advice to DIY consumers and paint contractors.

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he online training the South African Paint Manufacturing Association (SAPMA) offers for retail sales personnel is now more important than ever, says Tara Benn, executive director of SAPMA. The training culminates in the paint and hardware store staff becoming Certified Paint and Coatings Advisors.

Benn says pre-virus research had shown that the sales volumes of retailers are directly proportional to the technical and application expertise of sales staff and their ability to offer professional advice to DIY consumers and paint contractors. “Now, facing vastly increased competition caused by the Covid-19 lockdowns, retailers are operating in a new environment.

They will need both expertise as well as products to survive,” states Benn.

SAPMA’s online training is open to all retailers, including non-SAPMA members, and can be downloaded from the SAPMA website. After each module is studied, trainees must pass an on-line assessment of the lesson before being allowed to proceed to the next of a total of 10 modules.

“Once a trainee has successfully completed the 10 modules, he or she must pass an overall assessment of the modules studied before SAPMA issues a Certificate of Competence. The training videos acquired under licence are not transferable to other parties,” Benn explains.

She says the modules were formulated in collaboration with the Chemical Industries Education and Training Authority (CHIETA) and cover the use of correct painting systems, selecting

materials and tools to be used, plus important health and safety advice. c For more information, email training@sapma.org.za or visit www. sapma.org.za.

The modules offer training in the painting of: • Gutters and downpipes • Internal and external plastered walls • Concrete roof tiles • Gypsum board ceilings • Window frames • Palisade fencing • Bathroom tiles • Metal roofs • Exterior walls • The varnishing and sealing of external wood.

Contan to remain focused Paint retailers can now undertake online training to acquire the technical and application expertise needed to provide professional advice to DIY consumers and paint contractors.

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hilst it is essential that brand owners and their packaging partners get this first basic step right, there is no guarantee that ‘100% recyclable’ buckets won’t end up as litter. Therefore, it is essential that brands to partner with bucket suppliers who meet the Government’s new Section 18 regulations, which have made extended producer responsibility (EPR) a mandatory requirement.

Contan already firmly delivers on its extended producer responsibility through voluntary raw material levies paid to Polyco (the producer responsibility organisation for polyolefins), which are invested in

projects to improve collection and recycling, and to help drive demand for recycled plastic.

It is also critical for plastic convertors to practice responsible storage and handling of nurdles to prevent plastic leaking into stormwater drains and then the ocean. Polyoak is the first plastic packaging manufacturer in South Africa to pledge to the global Operation Clean Sweep initiative, demonstrating its commitment to Zero Plastic Pellet Loss into the environment.

Karl Lambrecht, CEO of Contan explains, “We are confident that our diverse range of lightweight, robust plastic paint containers brings manufacturers savings and reduces

10 | Coatings SA

their carbon footprint. Contan is a sustainable supplier partner that assumes responsibility for the end life of our packaging,” Explains Karl Lambrecht, CEO of Contan, adding, “By partnering with Contan, paint manufacturers and brand owners can actively contribute towards reducing packaging waste to landfill and help drive recycling initiatives which last year sustained almost 60,000 jobs.

We look forward to exploring how Contan can add value to customers’ business in an innovative and sustainable manner. c For more information, call 011-724-3800.

news

All systems go for Coatings for Africa 2021!

SAPMA has been advised by the organisers of Coatings for Africa (CfA) 2021, the largest exhibition and symposium for the paint and coatings sectors in Africa, is at this stage still scheduled to be held from 2-4 June next year.

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he biennial event, staged by dmg events in partnership with SAPMA and the Oil & Colour Chemists’ Association (OCCA), was scheduled to be staged at the Sandton Convention Centre this year, but the in view of Covid-19 restrictions on both mass gatherings as well as international travel, it was decided to postpone the event until next year. The venue remains Sandton Convention Centre.

Tara Benn, executive director of SAPMA, says dmg events says at least 80% of exhibitors have agreed to roll over their contracts to the new June 2021 dates, and special payments plans for exhibitors are being put in place.

The organisers are also in discussion COO2-4.pdf

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with African embassies to facilitate the attendance of trade delegations from all over the continent.

“Furthermore, dmg is liaising with the Department of Health and the World Health Organisation globally to ensure that all health protocols are adhered to for CfA 2021. Maximum health measures will also be implemented for all programmed events, such as the Captains of Industry cocktail function scheduled for the first evening of the show, which is now likely to be held outdoors on the balcony overlooking the expo floor at the Sandton Convention Centre,” Tara stated.

“It appears that exhibitors will have access to the Centre from May 31, according to dmg. We have also been

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advised that dmg is investigating the addition of another focused sector, such as packaging or ink production to CfA 2021,” she added. c For more information about CfA 2021, contact Dale Magaya on email dalemagaya@dmgevents.com.

Feature

Warrior has weathered the storm for three decades

The year, 2020, marked the 20th anniversary of leading paint producer, Warrior Paints, awarding its first franchise, and its 33rd production anniversary. Here Warrior’s marketing director, Chris Argyrou, talks to Jan de Beer about the company’s history and success story.

Q: Tell us briefly about the start of the company and what influenced your decision to go the franchise route?

A: In 1987, three brothers, Aggie, Anton and Chris Argyrou, formed Warrior Paints and commenced production and trading at the company’s first plant in Rosslyn, Pretoria. Shortly after, brother-in-law, Artemi Petrou, joined as a shareholder.

The year 1991 was a special one in Warrior Paint’s history, when its company-owned pilot retail paint store was opened in Arcadia, Pretoria.

This flagship store, later relocated to Gezina, Pretoria, proved an immediate success and was the inspiration to starting the Warrior franchise chain.

Franchising, or similar retail models, were common to the industry at that time so Warrior Paints’ directors, who had extensive experience in franchising, were confident of success through this route.

Q: How many franchised outlets do you have now, in what parts of the country?

A: Warrior now has 22 franchise stores, throughout the country.

These outlets provide a substantial percentage of our sales.

Q: What do you look for in awarding a franchise? Is location important, for example?

A: There are many factors crucial to awarding a franchise. Yes, the positioning of the store is important but, for us, the most important factor is that the store is personally managed by the owner, someone who is committed and passionate about his or her business.

Q: Do you police franchisees’ conduct and ethics as much as you monitor their sales volumes?

A: Franchisees are ambassadors for the Warrior brand and treated as

such. We believe in motivating them rather than policing them, and our sales manager and franchise manager play integral parts in motivating the franchisees. Our franchise manager and the company’s directors are actively involved and in constant personal contact with Warrior franchisees.

Q: How did your franchisees fare over lockdown? Have there been fatalities, or calls for help?

A: Our franchisees found conditions very difficult during the lockdown period, but have recovered well and are again producing good sales volumes. The company paid heed to the problems encountered by the franchisees in need of help and assisted wherever we could.

Q: SAPMA fought hard to get paint sales reinstated during lockdown, as you know.

Some of the Warrior Paints management team who steered the company during the stresses of the Covid-19 pandemic. From left: Frans Baloyi, laboratory supervisor; Gilbert Sehlabane, production supervisor; Alison Panman, technical manager; Artemi Petrou, logistics director; Pinkie Dube, receptionist and factory shop sales person; and Aggie Argyrou, financial director.

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Feature Does this show the merits of belonging to such an industry body?

A: We believe that the coatings industry should be grateful for and acknowledge, and more actively support, SAPMA. The association has played a major role in its welfare on so many fronts.

A prime example is the successful efforts by SAPMA to lobby the DTI to allow the manufacturers and paint retailers to open their doors on 1 May this year during lockdown.

This played a major role in helping the industry get back on track.

Q: How did your factory fare over lockdown? Did you manage to keep staff paid and employed in those dark months?

A: Warrior has a loyal and motivated staff complement at our Rosslyn plant, totally adequate and vital for the future of our business.

We managed to pay and keep them all employed during the Covid period and after they returned to work.

The entrance to Warrior’s production plant at Rosslyn, Pretoria.

Q: Many misguided people seem to believe it is relatively easy to start paint production, what in your opinion are vital for success?

A: The paint industry is extremely competitive and it is more difficult to start a paint factory today than a few decades ago.

What has always separated the chaff from the wheat applies to all industries: strong leadership, supported by capable people with good business principles and practices.

Q: How do you see the outlook for the South African paint industry, and what are its biggest challenges right now?

A: We are optimistic in our outlook for Warrior Paints. For the industry, however, we see extreme pressure on volumes, with selling prices not keeping up with raw material price increases.

"Warrior now has 22 stores throughout South Africa" Aggie Argyrou

Chris Argyrou, Warrior Paints sales director (left) with Dimitri Kasimiotis, Warrior’s franchisee in Boksburg.

Cheaper ranges have been introduced by most manufacturers into the market to force prices even lower.

The biggest challenges at the moment are shortages in raw materials, changes in governmental

13 | Coatings SA

regulations, keeping up with new technology and, of course, South Africa’s extremely weak postpandemic economy. c For more information, visit www.warriorpaints.co.za

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It can be added to the mill base, letdown or as a post addition without affecting performance properties.

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GENERAL Sungel 696 is compatible with most other thickeners and can be used in combination with certain cellulosic type thickeners.

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Feature

Rust-Oleum now part of world-renowned group Rust-Oleum South Africa is the latest business unit under the RPM Performance Coatings umbrella in South Africa.

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ithin the RPM Group, there are four primary divisions, including construction products, performance coatings, specialty products and consumer products. The consumer division, which Rust-Oleum South Africa is a part of, serves the professional market, the do-it yourselfers, and the crafters. With an extensive range of products, there’s no home maintenance and improvement activity, crafting project or furniture makeover that cannot be tackled. All the products are tried and tested for every challenge and easily accessible from hardware and paint stores, mass merchants and craft shops through a wide national distribution network.

The Consumer product categories include: • Small-project paints and coatings • Primers, caulks and sealants • Hobby and craft products • Specialty coatings • Wood stains and finishes • Wall and wood repair products • Household cleaners and stain removers • Floor finishing systems • Plumbing and water cleanup solutions.

Grant Boonzaier, managing director of RPM Performance Coatings – Platform Markets, is very positive about the acquisition of Rust-Oleum, saying, “it is the perfect fit for the company.” He identifies

the Platform Markets within the RPM Performance Coatings Group, as an umbrella for multiple brands, which include heavy duty coatings, flooring, waterproofing, concrete repair and grouting. Composite gratings under the StonCor company and consumer products under the Rust-Oleum company, can support each other during tough times.

“During the initial months of the Covid-19 pandemic, construction

16 | Coatings SA

products took an obvious knock. The consumer goods division, however, was stretched by the large increase in demand, effectively ensuring that the company could bear the brunt of the economic implications of the lockdown,” says Boonzaier.

Rust-Oleum recognises the obvious synergies within the greater RPM business and the company is incredibly optimistic about joining the dynamic group. At the beginning

Feature of September, Rust-Oleum South Africa introduced its business to the StonCor Africa team.

Rust-Oleum, a brand that has a heritage that dates back to 1921, is a billion-dollar business and the number one branded aerosol manufacturer in the world. Boasting 96% brand awareness in the USA, and a presence in 89 countries across six continents, were all key talking points that Rust-Oleum marketing manager, Lani Carstens, was proud to share with the StonCor team.

GEARED FOR GROWTH Rust-Oleum South Africa is a company with a clear strategy to increase store penetration and expand its market share, while continuing to extend its product platforms. The local operation has a customer focused structure, with a strict staffing policy of talent and innovative identification. Continuous training and development ensure that all staff have the necessary skills and market research to play a big role in the launching of new products. Customer-centricity is key.

The four pillars driving growth in its category – premium quality, innovation, category management and marketing support.

PREMIUM QUALITY As a premium brand, Rust-Oleum currently has 95% marketshare in South Africa, while Spraymate competes in the mid-tier. When you consider that one can of Painter’s Touch Plus does the job of up to two

to three cans of other brands – it’s no surprise that these coatings are classified as superior quality. This brand’s coverage, durability, colour selection and retention, and shelf-life cannot be trumped by competitors.

INNOVATION AND CATEGORY MANAGEMENT Product innovation, new platforms and range extensions are the norm for the brand, with new to market offerings an ongoing promise.

Having the latest on-trend colours, finishes and textures on offer, there’s a product that can solve any problem.

When it comes to problems there’s a dedicated technical support team and the company has an impressive after sales service ethos. Originality is not limited to products. In-store merchandise and branding gets the same scope of attention, because the brand is equally committed to maximising profitability for the retailer. Creative Point of Purchase (POP) display boxes are standard and used to inspire and educate customers, while interchangeable

Rust-Oleum, a brand that has a heritage that dates back to 1921, is a billion-dollar business and the number one branded aerosol manufacturer in the world.

Boasting 96% brand awareness in the USA, and a presence in 89 countries across six continents

17 | Coatings SA

on-shelf information panel displays can be updated seasonally. Retail support is never random.

Research and a sharp understanding of the market and consumer behaviour, based on the store and its location, inform what products will be found on shelf. This category management approach is continually measured to improve outputs and maximise sales.

MARKETING SUPPORT Added to this, dynamic and targeted marketing campaigns are helping build and cement the brand’s position as the first choice for spray painting solutions.

From clever social content, competitions, influencer, and blogger engagement, how to videos and eBooks – digital is alive with Rust-Oleum content. Other value adds include Blitz promotions run twice a year, training, tailor-made marketing solutions to open market and corporate accounts, and specific marketing calendars for each corporate account.

Forward thinking, innovative, research-based, supportive and customer-centric describe the RustOleum approach to business – and why it will remain a market leader.

RPM Performance Coatings in South Africa has three manufacturing and filling facilities in the greater Johannesburg area, with distribution and sales depots throughout South Africa. c For more information, call 016-365-5120.

Q&A

Excelsior Paints – A reliable business partner Guy Lawson from Excelsior Paints reflects on 2020, and Excelsior’s tremendous success during the past year and with an excited eye on 2021! He speaks openly to Coatings SA about the challenges during the first half of 2020 and the strengthening of business relationships as companies supported one another.

Q. In a nutshell describe the first half of 2020 and the impact it had on Excelsior?

A. This year started off on a positive note with January sales starting strong with lots of interest from potential new clients and customers.

This trend continued into February until the hard lock down was announced at the end of March. This stunted the potential of full March orders as customers were hesitant to take on stock with the looming lock down and uncertainty.

A worrying trend of slow payments began as the fear and the reality of lock down approached. All of these factors led to a general concern in the market and amongst our staff of what lay ahead. During Level-5 of the hard lockdown we could not supply, manufacture or trade and our customer base was also forced to shut its doors, which lead to zero turnover for the month of April.

The sales in June were beyond our expectations and we finished the first six months of the year upbeat and positive for the rest of the year despite the set-backs that we all faced. No staff were retrenched and the impact was a substantial financial pause due to the zero trade for one month and the slow payment collections.

Q. How did the team at Excelsior manage the challenges of the hard lockdown and eventual Level-4?

A. It was with great relief and trepidation that we returned to work with 10% of our workforce when Level-4 was announced, which

allowed us to begin trading under strict conditions. Introducing the new habits of Covid-compliance was tricky at first, but all staff and customers complied with what was required, and the habits (taking temperatures, hand sanitising, social distancing and splitting work hours and workforce) was established early on with everyone playing their part.

Online meetings kept the sales team together and informed until they could travel to see clients.

May sales started very slowly, but as more hardware retail stores opened we were able to hit 60% of a typical May turnover with a total of 30% returning staff. The positive nature and spirit of our staff, and the resilience shown by all under very difficult circumstances pulled us all together, the team work, empathy, and a willingness to fight back was inspiring and we fed off one another’s energy to get going again.

Our suppliers were also instrumental in their assistance to supply while cash in the economy started moving again and we learnt who our true friends and partners to our business were.

We are proud that we have pulled through lockdown and not had to retrench one staff member.

Q. I believe the second half of the year has been tremendously successful. Why? A. Sales have consistently climbed since June and record bumper months have been recorded by our customers. This has led to higher than normal paint and hardware purchases for almost all stores,

18 | Coatings SA

over all geographic locations and demographics. We have felt, and benefitted from this trend enormously. Rural hardware had exceptional growth and this can be contributed to more people being based in the rural areas after lockdown, and the fact that people had time to do DIY with many enjoying TERS relief.

In the urban areas the hardware sector has also boomed with many people fixing and renovating their homes and offices as time was available, and again, more money available to DIY as alcohol, cigarette and entertainment purchases were curtailed. People also took to ‘nesting’ at home and beautifying the space they were confined to.

As we pulled out of the lockdown we tried to assist our customers, to the best of our ability, while they needed to re-start their businesses and this required patience, empathy and a willingness to work together as normal payments returned.

As a family business we believe we were more able to engage with our clients on a personal level, and develop relationships that enhance business during trying times. This has led to an increase in sales from our loyal customer base and many more new customer enquiries and conversions.

Q. What areas are performing exceptionally well for Excelsior?

A. We are blessed that we are busy across the entire spectrum of coatings, both decorative and light industrial sold through retail distribution.

Q&A Trade business has slowly started climbing and maintains an upward trajectory, direct industrial business has performed the worst, yet it also shows growth towards the end of the year.

We have also noticed that this sales trend is across all geographic regions of South Africa in all sectors that we supply.

Q. What do you expect from the Coatings Industry in 2021?

A. We are all expecting an inevitable return to normal with slower and more traditional sales figures, but each month continues to surprise us.

Rising costs have placed manufacturers under pressure and price increases in the new year seem to be inevitable. I expect a fair amount of consolidation amongst retailers and manufacturers, and closer relationships forming between the two.

Q. What will be the biggest challenges in 2021?

A. Managing and containing costs will be paramount.

Increasing overhead costs such as electricity and labour will come into play and manufacturers will be hard pushed to pass increases on to a market that is price sensitive and vulnerable to sudden changes.

Raw material shortages will continue to prevail for the first half of the year and prices will climb while demand is high and supply is tight.

We also face uncertainty on the strength of the Rand and this will affect commodity prices too.

Q. And the opportunities for Excelsior?

A. We continue to remain optimistic as we continue to grow our offering into developing non-traditional retail markets.

This, coupled with focus on new product lines in areas that we have never competed before, allows us to expect continual growth in 2021 using the same infrastructure that we have invested in over the last five years and the same basic principles and philosophy we have used since 1937.

Q. Excelsior went through an incredible period of development and growth. What new developments (if any) can we expect in 2021?

A. 2021 will be a year to do more of the same of what we have been doing for many years – investing in our customers.

Adherence to basic business principles and maintaining, and nurturing customer relationships will form the back-bone of our continued growth. We will have some new and innovative products to add and some products going into markets that we have never entered before.

Lastly we also have some planned plant expansion to allow for additional capacity. c

19 | Coatings SA

feature

Taking brave ground

E

very year, the Global Aesthetic centre works with colour representatives from 80 markets around the world. To ensure that the trends are right for the future, it gains insights from acclaimed international design experts and unpacks the latest global trends that will affect every area of people’s lives.

This research is then translated into insights that inform one key colour that reflects the mood of the moment for that year – a tone that’s set to have an impact on homes all over the world. Dulux colour expert, Palesa Ramaisa unpacks the process that goes into these colour insights and looks back at some of the most memorable colours and trends of the past decade.

“We started working with over 100 colours in 2004 to show the breadth

Dulux Colour of the Year for 2021 is ‘Brave Ground’, but how did it come out on top?

This is a look at colour trends through the years and how this year is braver than ever.

of our colour expertise.

Every Colour of the Year marks a moment in time and, viewed collectively, they can help tell the story of our age.

The evolution of our ColourFutures palettes charts the changes in our consumers’ appetite for different colours, and also reflects what’s going on globally. You’ll notice that neutrals are becoming increasingly important, with a continuing interest in shades on the grey scale and warm neutrals that serve as the perfect canvas for most homes.

Nearly two decades on from the very first ColourFutures, we’ve honed our colours down from 100 to 37, creating a curated selection that takes the complexity out of colour choice and makes it far easier for our consumers to select the shades that are right for them,” says Ramaisa.

20 | Coatings SA

If we look at the past decide we see clear trends of how people gravitated to certain shades: • 2004-2007 cooler blues: Calming blues and purples played a dominant role in the colour palettes of this period.

• 2004-2021 neutral grow: We’ve seen an increasing interest in neutrals, with earthy tones making more of an appearance.

• 2007-2013 optimistic yellows: Sunny shades became more prevalent, with people looking for positivity in their interiors.

• 2013-2021 muted tones: The last few years have seen a growing desire for more neutral shades, with an increase in the popularity of greyish tones.

AN H C

,A GE

DAPT & ASSI

MI LA TE

The polymer that creates colour Synthetic Polymers produces high-quality polymers for various myriad sectors such as decorative coatings, automotive coating, medium to heavy industrial coating and wood coating etc. Solvent based polymers are Synthetic Polymers core focus; however, our plant also has the capability of producing water-based polymers. A wide variety of resins including acrylics, aminos, saturated polyesters and the more popular alkyd resins as well as some specialist resins are produced using the strictest quality standards in our plant. Research and development take place in our state-of-the-art laboratory with the latest equipment and highly qualified polymer chemists. Convenient delivery with our twenty-metric ton bulk delivery vehicle with lead times between twenty-four and seventy-two hours.

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feature “What has emerged from our trend forecast this year with Dulux Colour of the Year for 2021 is Brave Ground as we all reassess what really matters in our lives. We’re taking stock and finding a new and positive way forward by having faith in ourselves, working together, building on the past and planning for the future. It takes courage to embrace change and our homes can help provide a solid and supportive foundation, as well as giving us the scope to be creative,” explains Ramaisa.

Dulux Colour of the Year for 2021, Brave Ground is a warm, natural neutral that’s a nurturing and balancing colour. A versatile shade that allows other colours to shine.

“We’ve created four easy-to-use colour palettes, all centred around the Colour of the Year, so you can express yourself in any number of ways and be brave enough to take that first step,” adds Ramaisa.

IF YOU ARE LOOKING FOR SOME INSPIRATION ON HOW TO INCORPORATE BRAVE GROUND INTO THE HOME RAMAISA OUTLINES FOUR INSPIRATION STYLES THAT YOU CAN TRY IN OUR OWN SPACE:

1

Combine Colour of the Year 2021 with Timeless tones to create a balanced backdrop for entertaining.

Create a relaxed and informal dining area by pairing Brave Ground with our Timeless colours.

This palette creates a firm foundation for any furnishings – traditional or modern; and works well with artisanal crafts and natural materials.

Combine Brave Ground with the earthy colours of the Trust colour palette for a warm and welcoming feel.

Subtle and smart, these tones work well with mid-century furniture and rich finishes, such as copper, marble and velvet.

Which colours?

• Brave Ground - 10YY 30/106 • Creme Brulee - 00YY 26/220

Which colours?

• Brave Ground - 10YY 30/106 • White Bucks - 10YY 72/021 • Light Taupe - 90YR 48/062 • Urban Road - 15YY 33/043

2

Mix warm shades of red and pink with the Colour of the Year 2021 for a bold bedroom.

Have the courage to be individual by pairing Colour of the Year 2021, Brave Ground with the bold pinks and reds of the Expressive colour palette.

These colours look great styled with modern furnishings, graphic patterns and light wood floors.

Which colours?

• Brave Ground - 10YY 30/106 • Canterbury Lane - 70RR 17/372 • Tea Dance - 10YR 21/436 • Downing Street - 30YR 14/365

3

Combine Colour of the Year 2021 with a mix of soft, natural shades to give a relaxed and inviting feel to a home office.

22 | Coatings SA

4

Create a connection back to the natural world with our 2021 colour trends Bring the outside in with our Earth colours – think shades of blue and green, balanced with Dulux Colour of the Year, Brave Ground.

These tones work well styled up with natural wood, reclaimed furniture, shapely ceramics and indoor plants. c

Dulux Colour of the Year for 2021, Brave Ground is a warm, natural neutral that’s a nurturing and balancing colour. A versatile shade that allows other colours to shine.

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Interview

Aggie Argyrou – Coatings is in his blood Aggie Argyrou, Chairman of SAPMA, talks candidly about the coatings industry and its positive outlook, the importance of training, and the extensive lobbying by SAPMA’s heavyweights – Tara Benn, Dr Ivor Blumenthal, Deryck Spence and Sanjeev Bhatt during the hard level-five lockdown in April of 2020 to ensure the coatings industry could operate, albeit in limited capacity, from 1 May 2020.

Q: What is the general sentiment from the coatings industry considering the impact of the global pandemic?

A: This has certainly been the toughest year. Globally the world started locking down in February, and the South African government followed suit by implementing a very strict lockdown. The South African government was kind enough to offer UIF compensation and looking back today, I can only be grateful. We’ve managed to navigate the pandemic without job losses.

The South African nation is extremely resilient. We always manage to dig ourselves out of a hole. There are still some regulations in place, but these are being taken very seriously by companies – and is echoed in the coatings industry.

Q. Looking into 2021 and 2022, how does the current sentiment change? Is there hope and belief from the industry that it can strengthen in the years to come?

A. I believe the next two years will be very positive for the coatings industry. Not easy, but positive.

It is vital for the local industry to keep its service levels at the highest standards and to continue driving training initiatives.

SAPITI has an online training facility for retailers to train its staff and this is a vital tool to keep them motivated. This is what will keep our industry going. Every single player within our industry is vitally important.

Q. It appears that our own government can be more obsessed with international relations than strengthening our own coatings industry. Care to comment?

A. We should never ignore our global partners, especially our African friends further north, however, South Africa has many of its own issues that must also be focused on. The rules for local companies and industries are not always fair. How we treat our global partners wanting to import into South Africa are in some cases very different to how our companies are being treated to export to their countries. Our government must look at stimulating the labour market and creating more local jobs, whilst balancing international relations.

Q. What can government do to make it more attractive or feasible for the coatings industry to grow?

A. It is no secret that our infrastructure is busy collapsing. It is imperative for us to get our act together. Eskom is failing, our watersupply is failing – just look at the Rosslyn area in Pretoria where we are located, and you see everything collapsing. In Bloemfontein the local government cannot afford to replace or repair important infrastructure.

Government has to start listening to the concerns of industry. We are currently dealing with a government which acts after the horse has bolted when the only path to growth is to have active participation from both government and industry.

24 | Coatings SA

Aggie Argyrou, Chairman of SAPMA

Q. What are the real opportunities for industry to become a SAPMA member?

A. Training is the single most important focus area. SAPMA is willing to work with our members and offer training and assistance on many aspects. From legal matters to understanding the hazardous substances act.

Our team at SAPMA assist members in dealing with the Department of Agriculture and Fisheries; The lead in paint legislation; The DTI; the Department of Health and other statutory bodies and we are actively driving SABS or an independent laboratory standard to be implemented for coatings in South Africa.

Interview Coatings are used all around us, and SAPMA plays a pivotal role to ensure the industry’s needs are raised at the forefront of government discussions.

But still many companies do not see the value of being a member until it is too late. Often non-members knock on our doors for urgent help, but when things are going well SAPMA is forgotten.

We want our members to become active participants and be involved. We want them to share their legal issues so that SAPMA can assist in sorting these out and utilise our contacts to ensure the interests of the coatings industry are placed first.

Q. Industry Training remains a challenge. Let’s discuss.

A. Members quickly complain that contractors are not being trained properly.

And the message from the contractor is that they cannot afford to pull workers from the worksite for a week to complete training.

Let me tell you, one week of training will make a world’s difference to the contractor. We have to stop thinking about the cost of training, but rather think of the costs not training our staff.

Companies still struggle to understand the value of training.

It is only once work must be redone that companies realise how expensive site errors can be. SAPMA has made it really simple for all stakeholders in the industry to train staff through the online SAPMA training portal.

For a nominal fee the student can complete an exam and be qualified.

We also need the retailers to use this facility. Staff can use their lunch hours or breakrooms effectively and become qualified in a couple of hours. But here we need the retail management to take training seriously.

Put the message out in your stores and incentivise staff to become qualified. It is understandable that during the hard lockdown it was difficult for member companies and training

was put on hold but SAPMA’s on-line training could have been used by the members. The coatings industry must get together and get the message out to understand training.

The industry can save thousands annually if work is completed correctly from the beginning.

But for that to happen, a qualified person must be used in the preparation as well as application of the paint task – and as always use the right product for the job. c

"We want our members to become active participants and be involved.

We want them to share their legal issues so that SAPMA can assist in sorting these out and utilise our contacts to ensure the interests of the coatings industry are placed first" - Aggie Argyrou

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25 | Coatings SA

From the Executive Director

Sapma’s future is in your hands!

The importance of a formal association that represents a particular sector of South African industry has been shown over and over again – particularly in crises such as the recent lockdown when desperate appeals to government were made by so many trade bodies. You will recall that SAPMA also played a major part and successfully lobbied for paint sales to reopen at a critical time for the coatings sector.

W

e can assume that all our members realise that SAPMA is important for their business survival. However, be warned: SAPMA could cease to exist if you do not place the association among your priorities when it comes to financial commitment.

Without prompt payment of membership subscriptions, SAPMA cannot function. Agreed, it’s been a surreal year, probably the worst in living memory for many members. But now more than ever, the strength we need can only come from unity. SAPMA represents all sectors of the coatings industry, including manufacturers, suppliers, paint contractors, retail outlets and franchises.

Being the united voice of all these players, large or small in the coatings sector, helps to ensure that all sectors of the industry are working together in vital matters.

SAPMA is currently midstream in many important developments we cannot just let fall by the wayside. For a start, we are in the process of forming a Confederation of many different facets of the coatings industry. A Confederation that we hope will become a recognised Professional Body, which will benefit the entire industry on a variety of issues including wages and transformation. This is just one of many reasons why SAPMA must continue to fight on your behalf.

But the fate of this association is in your hands.

26 | Coatings SA

Through a variety of challenging circumstances exacerbated by the lockdown, we are close to floundering if you do not commit. Please place your SAPMA subscription fees among your top priorities so that we can continue to represent you and your business.

Without the combined effort we offer, you are out there on your own. And in 2021 going it alone is not wise.

Please give us a call if you need to discuss your membership obligations so that we can see if we can make special arrangements, or meet you halfway. Don’t let 80-plus years of coatings commitment by SAPMA come to an end. We need you. You need us. c TARA BENN Executive Director

The polymer that creates colour Synthetic Polymers produces high-quality polymers for various myriad sectors such as decorative coatings, automotive coating, medium to heavy industrial coating and wood coating etc. Solvent based polymers are Synthetic Polymers core focus; however, our plant also has the capability of producing water-based polymers. A wide variety of resins including acrylics, aminos, saturated polyesters and the more popular alkyd resins as well as some specialist resins are produced using the strictest quality standards in our plant. Research and development take place in our state-of-the-art laboratory with the latest equipment and highly qualified polymer chemists. Convenient delivery with our twenty-metric ton bulk delivery vehicle with lead times between twenty-four and seventy-two hours.

• Long oil alkyds • Medium oil alkyds • Short oil alkyds • Short & Medium chain stopped alkyds • Urethane alkyds & Oils • Styrenated alkyds • Hydroxy functional acrylics • Thermoplastic acrylics • Specialty alkyds • Amino resins • Thermoset acrylics • Saturated oil free polyesters

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