Gaining Sustainable Advantage in the Coatings and Resins Industries
Throughout the 1980s and ‘90s, the coatings industry encountered significant challenges related to globalization, mergers and acquisitions, and an increasing focus on meeting environmental regulations, while simultaneously increasing profitability and shareholder value. The coatings industry is evolving; consolidation, government regulation, technological changes, a variety of market trends and generally slow growth are impacting the industry. Forward-looking companies are eagerly developing competitive strategies to not only survive, but to profitably thrive, in this new environment. This article will explore the future of the coatings and resins industries, and the need to develop and implement a sustainable competitive strategy. An example, which illustrates a competitive strategy based on the use of novel waterborne chemistry, will be highlighted.
The coatings market has been described as both mature and dynamic — dominated by strong competition and the need to innovate due to stringent environmental regulations. The consolidation trend that began in the 1980s has significantly intensified as many companies strive for geographic expansion and the ability to service global customers. The consolidation trend has required companies to reassess their market focus and identify the factors controlling their growth, profitability and competitive advantage. Despite these trends, there remain relatively few markets that are dominated worldwide by a small group of paint suppliers. A few examples of these market segments are automotive topcoat, interior/exterior can and the marine coatings segments.