Industrial_Maintenance_Coatings_Market_Growth

JCT Coatingstech Magazine

February 2007

Volume 4, No. 2

Market Update

Page 88-91

Excerpts from… “Near-Term Future is BRIGHT for Industrial Maintenance Coatings”

By Cynthia Challener, JCT Coatingstech Contributing Writer

The broader definition of industrial maintenance coatings includes both field-applied and OEM coatings used to protect assets. They include roofing, food and beverage, process plant, recreational, and commercial applications……..

According to Dan Murad of The ChemQuest Group: “The global market for IM coatings using this definition totals $6 billion, with North America contributing $2.0 billion. The breakdown between field-applied and OEM coatings is approximately 65%/35%.

The ChemQuest Group pegs the growth rate for industrial maintenance and other special purpose coatings in North America at 3.5% in 2006, up from 2.3% in 2005. The value of the market was estimated to increase by 5.6% in 2006 versus 2005, with the trend predicted to continue in 2007. Around the world, the highest growth rates can be seen in Eastern Europe (7-8%) and Asia (9%).”

CC/JCT CoatingsTech: Growth in the IM market is closely tied to capital spending and maintenance cycles, with new construction accounting for about 35% of the market and maintenance the remaining 65%.

“When capacity utilization drops, as it did in the earlier part of the decade, the use of existing equipment rises and new construction is minimal. In addition, maintenance cycles are often delayed,” explains Dan Murad, President and CEO of The ChemQuest Group. “Today, we are seeing capacity utilization in the low 80% range, which is a pretty good level. The peak is usually in the upper 80s, so we still have room for growth, too.”

CC/JCT CoatingsTech: The value associated with industrial maintenance coatings lies chiefly in the protection they provide, most specifically corrosion and chemical resistance. According to Rick Jones, Vice President of The ChemQuest Group, some paint manufacturers add value by providing a distribution model geared toward contractors. “IM paints are applied by contractors, and suppliers that can make it easier for contractors to get their material definitely have a competitive advantage. More recently, application productivity has become an important factor in determining overall value of IM coatings.”

(To read the complete article…and more comments on “Near-Term Future is BRIGHT for Industrial Maintenance Coatings”………see JCT Coatingstech Magazine – February 2007 issue – “Low-VOC Waterborne Coatings for Use in Industrial Maintenance Painting”)