For businesses large and small, changes to trade policy, changes in transportation costs, changes in federal and state regulation, and changes in technology have impacted the everyday realities of chemical distribution experts and how they manage inventory, prepare for logistical challenges, determine workforce needs, and implement new technologies.

Trade policy certainly became a defining variable in 2026. Because the paint and coatings supply chain is deeply interconnected, one disruption can cause a domino effect. Disruptions to key shipping routes in the Middle East have undoubtedly caused trade uncertainty and increased prices for businesses and consumers alike. These disruptions, compounded with the administration’s tariff strategy, can make long-term planning difficult, and they require businesses to stay nimble in their trade approach and inventory planning. One thing is certain: American businesses need a resilient supply chain to keep costs steady and drive economic growth for businesses of all sizes.

On the federal and state policy front, businesses are navigating regulatory changes that are impacting business compliance programs and reporting requirements. In particular, businesses have experienced increased enforcement activity around the Toxic Substances Control Act, with agencies inspecting chemical imports that may violate federal chemical regulations. Federal and state regulatory changes around per- and polyfluoroalkyl substances, hazard communications, heat illness, and more also require businesses to navigate new rules at the federal level in addition to a state regulatory patchwork for the locations in which they operate. The increased scrutiny at our nation’s ports and the regulatory changes happening on the federal and state level are an important reminder that businesses must ensure their safety, reporting, and compliance standards are up-to-date.

Technological advancements have also changed the game. On one hand, Artificial Intelligence is supporting better forecasting, smarter logistics, and better inventory management. On the other hand, it’s contributing to harder-to-detect fraud attempts on businesses across the chemical supply chain, forcing us to always stay vigilant.

Paint & Coatings Industry magazine brought together specialty and large distribution experts to gauge how they are approaching some of these challenges. The following roundtable provides important perspectives and context on what’s changed this year, how businesses across the paint and coatings supply chain are adapting their strategies, and what kind of technological advancements are being implemented to ensure our sectors stay competitive today and, in the years, to come.

PCI: Looking back at 2026, what changed most in coatings demand, customer buying behavior or the raw materials customers are seeking? What are you seeing that supports that view?

IndSpyre: Customer buying behavior changed the most. Amidst price increases, some customers tended to “over order” to get ahead of possible additional increases as well as availability constraints as a result.

Univar Solutions: Across the CASE markets, customers are becoming much more deliberate in how they select both raw materials and supply partners. Performance remains essential, but customers are also looking for supply security, technical expertise, regulatory support and access to innovation.

At the same time, they are under pressure to simplify formulations and improve efficiency, creating greater demand for technologies that deliver multiple benefits. As a result, purchasing decisions are becoming more strategic, with customers engaging earlier and increasingly looking to distribution partners for insight, guidance, and long-term value rather than simply product supply.

IMCD: The most significant change in 2026 was not what coatings customers wanted to formulate with, but how they chose to buy. Across the Americas, customers have become more disciplined, selective, and value-focused in purchasing decisions. Sustainability, formulation efficiency, and performance requirements remain important, but the dominant theme has been a procurement environment characterized by lower inventories, shorter purchasing cycles, supplier rationalization, and a strong focus on total delivered value. This behavioral shift has had a larger impact on suppliers' sales patterns and growth opportunities than any single raw material trend.

PCI: How have tariffs, changing trade policy, freight conditions or regional sourcing priorities changed one supply-chain or inventory decision at your company this year? Which change is likely to remain in place?

IndSpyre: Our reorder points for any imported products were impacted greatly. Inventory levels of certain domestic products were increased, anticipating availability issues.

Univar Solutions: One of the biggest shifts we've made this year has been moving beyond a pure cost focus and placing greater emphasis on supply resilience and sourcing flexibility. Whether driven by tariffs, freight volatility, or broader geopolitical uncertainty, customers want confidence that supply can continue when markets become disrupted.

As a result, we've spent more time evaluating alternative sourcing options, strengthening regional supply positions, and developing credible contingency plans across key technologies.

I expect that approach to remain. Market conditions will continue to evolve, but the importance of supply security, sourcing optionality, and regional availability is now firmly embedded in how both customers and suppliers think about risk.

PCI: Where are coatings manufacturers now relying on distributors for more than product availability? Please share one nonconfidential example involving formulation support, testing, scale-up, troubleshooting, regulatory guidance or another service.

IndSpyre: Many of our customers have in-house chemists who are newer to the industry, and those teams are now being tasked with reformulating products, such as finishes, to remove PFAS chemicals. In these cases, we step in to develop the formulation, run testing and validation, and manage scale-up at the customer's facility. Because the regulatory landscape around PFAS and Proposition 65 is evolving quickly, some customers aren't fully aware of the changes, so we also work closely with them to help guide their compliance decisions.

IMCD: Today, coatings manufacturers are increasingly relying on distributors for technical and innovation support, not just product supply. As internal R&D resources become leaner and formulation complexity increases, distributors are often being asked to help solve application challenges, accelerate development timelines, and navigate regulatory requirements.

The distributor's value proposition has expanded well beyond logistics and product availability. The strongest distributor relationships today are built around technical problem-solving, formulation expertise, testing capabilities, and speed-to-market support that help coating manufacturers innovate faster with fewer internal resources.

For example, we recently worked with a customer evaluating a net negative carbon footprint pigment technology for an automotive coating application. We developed comparative formulations, conducted accelerated corrosion testing, benchmarked the results against established alternatives, and provided technical recommendations based on the data generated. The testing confirmed comparable performance, enabling the customer to move forward with internal validation.

This is a good example of how distributors are helping customers accelerate innovation through technical expertise, laboratory capabilities, troubleshooting, and data-driven decision support.

PCI: What documentation or data are coatings customers requesting more often, whether related to PFAS, VOCs, sustainability, product stewardship, supplier qualification or other compliance needs? Where are the largest gaps?

IndSpyre: Many customers have relied on the same formulations for decades, only to discover they contain not just PFAS chemicals but other chemicals of concern, such as phthalates or nonylphenol ethoxylates, and need help reformulating. We've also worked with customers who were exceeding VOC limits without realizing it, and helped bring that back under control. State regulations change frequently, often with little advance notice, which makes it hard for companies to keep up.

PCI: Where has AI, digitization or automation produced a practical benefit in distribution during 2026, and where does human expertise still matter most?

IndSpyre: Human expertise remains critical for technical product selection, formulation advice, complex exceptions, negotiations, relationship management, safety and regulatory accountability, and strategic decisions. AI serves as decision support with human oversight.

Univar Solutions: AI and digitization are helping us improve speed, visibility, and decision-making across the business, particularly when it comes to accessing information and identifying trends more quickly.

Where human expertise remains critical is turning those insights into practical solutions. Customers still rely on technical and commercial teams to help navigate formulation challenges, supplier selection, regulatory requirements, and changing market conditions.

Technology can make us more efficient, but relationships, experience, and expertise remain at the heart of creating value for customers.

IMCD: Distribution leaders like IMCD use AI to automate transactions, improve forecasting, and enhance decision-making, while deploying human expertise where it creates the greatest value: technical consulting, innovation, strategic account management, and problem solving. The future is not AI versus people, but AI handling routine work so experts can spend more time helping customers solve complex challenges and grow their business.

PCI: What is one assumption coatings manufacturers should reconsider as they plan for 2027, and what should they do differently?

IndSpyre: Manufacturers should reconsider the assumption that today's core substrates will still dominate tomorrow. The fix is proactive R&D: start testing against emerging substrates now, rather than reacting once a customer's spec forces the issue.

Univar Solutions: One assumption I would challenge is that the market will settle into a "new normal" anytime soon. Customer expectations continue to evolve, regulatory requirements continue to change, and the pace of innovation across our industry shows no signs of slowing down.

For me, success in 2027 will be less about making perfect predictions and more about maintaining agility. Manufacturers should focus on strong supplier partnerships, access to innovative technologies, and the ability to adapt quickly as market conditions change.

In today's environment, agility is becoming just as important as scale.

IMCD: One assumption coatings manufacturers should reconsider for 2027 is that growth will mainly come from waiting for broader market recovery. There is potential in every market environment, but it will come from creating clearer, measurable value for customers. Based on what we see in the market, and supported by the bi-annual IMCD formulation trends survey feedback, efficiency is becoming one of the strongest priorities for customers in North America and globally over the next two years. More than half of surveyed North American customers point to efficiency-driven formulation needs, with supply security and formulation cost ranking especially high. Manufacturers should therefore focus on solutions that help customers simplify formulations, improve productivity, manage risk, and protect performance.

That also means prioritizing growth technologies that address immediate customer concerns, including low-VOC and waterborne systems, improved safety, PFAS and heavy metal removal, durability, and better total cost-in-use. The opportunity is less about selling standalone products and more about helping customers solve current formulation challenges with technical support, credible data, and practical alternatives. In 2027, success will come from using customer insight to identify where value can be created faster, then supporting customers with formulation expertise and differentiated solutions that make that value tangible.