A focus on environmental coatings and the growing demand for novel applications and effects has helped to pull the Australian coatings sector through the recession. But is this enough to overcome a slow market and depressed sales? Karryn Miller reports
A focus on environmental coatings and the growing demand for novel applications and effects has helped to pull the Australian coatings sector through the recession. But is this enough to overcome a slow market and depressed sales? Karryn Miller reports
Australia’s paint and coatings manufacturers have not felt the burden of the economic downturn equally. “Generally speaking, sales are down, but some product lines have experienced growth because they are replacing products that are being phased out,” explained Daniel Wurm, managing director of Greenpainters, a non-profit network promoting sustainable paint and coatings technology in Australia. “These include some premium lines that have been reformulated as low-VOC (volatile organic compound).”
Eco-friendly sector performs well
Market researchers IBISWorld predict Australia’s paint manufacturing sector total industry revenue (including domestic sales and export sales) will decrease by 2.7% to AU$2.55bn (US$2.12bn) over the 2009-2010 period.
Toon van Beeck, a senior industry analyst at IBISWorld stressed that eco-friendly formulas have been performing better in Australia however: “Water-based architectural paints have increased considerably in the past two decades.” This has been at the expense of solvents. “Even with the introduction of new and improved solvents with low VOC emission levels,” he added.
VOC emission level targets are a key driver in new product development for Australian manufacturers and an important part of the purchase decision for consumers. “The Australian Paint Approval Scheme’s (APAS) (www.apas.gov.au/ss2.htm) VOC reduction agreements are forcing Australian manufacturers to lower VOC levels in products across the board,” said Mr Wurm.
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