Despite facing a mountain of legislation and a tough economic climate, coatings and finishes manufacturers are investing in new products and technology to cope with changing market demands.
With the European Commission getting tough on emissions of volatile organic compounds (VOC), manufacturers have been reformulating products for several years, with a growing number developing a new batch of water-borne variants.
The EC’s directive limiting VOC emissions comes into force in 2007, with even lower levels allowable after January 1, 2010. With many manufacturers’ products already within the allowable limits for the first deadline, the directive’s effect will be minimal, although it is less easy to predict what will happen after 2010.
Unlike most EU directives – which are often forced on industries – the feeling among suppliers is that reducing VOC emissions is a good thing. Steve Snaith, marketing manager for ICI Dulux Trade, said: “While paint only contributes 3% of all man-made VOCs in Europe, we believe we have a duty to reduce emissions while meeting paint applier and specifier needs.”
He said ICI research and development programmes would be looking at the use of water-based products instead of solvent ones, and the reformulation of solvent-based products to offer those that meet customer demands, while complying with the directive.
Others are also working hard in this area. “The onus is definitely on manufacturers to reduce solvent emissions,” said Geoff Taylor, Akzo Nobel Sikkens general sales manager in the UK and Ireland. “By the use of new resins and solvent blends, we can get higher performance from the product and greater longevity because the resin has greater weathering resistance.”
Key drivers
In fact, for Sikkens, the key drivers in the market are all about performance. “Price has an influence but it’s not always about having the lowest price – it’s about whether your product does what it says it can and if you back that up with the right technical and marketing support,” said Mr Taylor. “This is what our customers require.”
The legislative demands are already translating through to sales. Italian wood coatings specialist ICA, which recently unveiled a €17.3m investment plan to develop key export markets like the UK and Ireland, saw sales of water-based coatings for exterior joinery up 47% in 2004 – in fact, they were the company’s biggest sellers. With over €25.8m invested in new technology over the past three years, the company is confident its ICA and Salachi brands will continue to remain competitive.
Others, like Burgess Hydrosol, are moving into the UK decking and furniture market with their products. The company, which has a long pedigree in harsh marine environments, is turning its attention to garden furniture, fencing and decking with its Hydrosol Woodsealer and Clearsealer finish ranges.
Certainly, within the UK, there is every sign that the market is coping with a tougher economy. Woodcare products have taken on a new lease of life as homeowners realise the high cost of replacing items like windows, doors, garden furniture and conservatories. With the popular media extolling the virtues of using the garden as an extension of the home, consumers have become increasingly sophisticated in their choices of coatings and finishes – and manufacturers have responded to their needs.
Natural look
Emma Lazenby, group brand manager for Dulux Trade Woodcare and Cuprinol Trade, said: “Opaques are growing rapidly and browns and greens are becoming more fashionable as consumers try to get their wood looking more natural after the period where DIY TV shows brought bright colours to the market.”
ICI Woodcare recently introduced its Cuprinol Trade Cladding & Fence Opaque Finish, which is designed to protect against the effects of weather and offer the benefits of an opaque woodstain with the appearance of solid colour.
According to the British Coatings Federation, woodcare accounts for 8% of sales by volume and 7% of sales by value of all paint coatings used in the UK, equating to some 51 million litres. Trade figures put the market at around £34m, down slightly this year but not significantly from five years ago.
“Globally the market is very buoyant and we are doing very well,” said Martin Seabrook, technical director, Becker Acroma. “However, the UK market is currently a challenge, and this has been the case for the past few years, especially as traditional market sectors for wood finishing, such as furniture, have declined. In the UK, we have therefore expanded our efforts into other sectors, such as joinery, which is a very successful area for us.”
He said the current focus for the company’s customers is on improving the cost per square metre, improving production efficiency and identifying product developments that offer added value. “The close relationship of our technical department with our customers has therefore become increasingly important in working to achieve the optimum solutions for them,” said Mr Seabrook.
Ivan Wilson, operations manager for Tor Coatings, which owns the Solignum and Blackfriar brands, agrees that the market has been difficult, although the company is holding its own. “Since the acquisition of both brands last year, we’ve retained sales in a difficult climate – in fact, we think we’ve had some growth against a sector which is down overall.
“Solignum is proving very strong in the opaque exterior timber care area. We’ve also seen an increase in decking timbers which has meant higher sales of preservatives and stains,” he said.
The company recently introduced a new anti-slip deck coating which contains an aggregate to prevent slipping as the deck weathers with age. Tor Coatings will also be launching a Blackfriar range of deckstains, which already has a full range of stains, varnishes, garden furniture restorers and oils.
Sikkens’ Geoff Taylor says the trends are towards opaque products – paints, in whites and colours. “There is roughly a 60/40 split between opaque and translucent products in our markets, both in the UK and Ireland. With regards to finish, we are moving towards water-borne gloss finishes. In joinery, generally, most manufacturers have a water-borne satin, but with the new resins, we can now offer gloss finishes on the opaque range. This has been driven by the customer and enabled by the newer technologies.”
In the past year, the company has launched a range of products with the new resins in called Powerfeed. “This resin gives us up to 30% greater durability over the resins we’ve previously had on the market,” said Mr Taylor. “This is achieved by having a more flexible resin and greater clarities, particularly if you are in a woodstain product. We are always trying to push the barriers in terms of performance, and looking at ways of making the article last longer and how it can help our customers to do that.”
Becker Acroma’s Martin Seabrook agrees that product innovation is a vital factor. “Our technical team is constantly working with our customers to develop solutions which fit the key drivers of their business, so these typically tend to be alterations and extensions to our current product range.
“However, some customers are seeking more specialised products, so we have increasingly been developing products in response to more bespoke needs.”
Specialist coatings
Others investing in new products include Premier Finishes, which manufactures and distributes specialist wood coatings. “We’ve taken on new staff and have made internal alterations to our production area,” said director George Toseland. “We’ve also built a new testing laboratory where our technicians are looking for new product characteristics and, of course, monitoring the performance techniques of our existing ranges.
The company says it has seen significant demand for its Hygienilac anti-bacterial wood lacquer, as more customers realise the potential of extra protection. “It’s not just in hospitals that the threat of infection exits,” said Mr Toseland. “There is a very real need for increased protection in places such as catering establishments, fast food outlets, schools, care homes and hotels.”
