Industry Forum: What is in the Price of Paint? A Regulatory Reflection
The cost of electrocoat includes more than just the product. Other than raw materials, the container, and delivery and service costs, what is included in the price of paint to the end user? This is a timeless question frequently asked by suppliers and users alike in these days of cost constraints and intense market competition. Given some additional thought, one might come up with the cost for the research and development of the product, advertising costs and other miscellaneous expenses. One issue, often neglected in my opinion, is the regulatory cost associated with coatings, including electrocoat.
I am not going to opine about the "old days," when regulatory oversight was non-existent and associated costs were minimal. These same good old days saw some shocking environmental problems. Companies that were responsible with chemical usage were notable exceptions. The various federal, state and local regulations were enacted to create a more environmentally focused and socially responsible chemical industry. Still, costs have accrued as the industry adopts standards and complies with myriad regulatory statutes. I wanted to reflect on some of these regulatory requirements because some are not well known by coatings users.