There is lots of “breaking news” in the powder coating world. One of the biggest bombshells is the recent EU ruling regarding the classification of titanium dioxide as a category 2 – suspected carcinogen by inhalation. This directive requires the labelling of mixtures (including coatings) that possess more than 1% content of TiO2. This colorant pigment is estimated to be present in over 60% of all powder coatings produced worldwide and technically there is no replacement that comes close to its opacity, performance and economics. This new regulation is a culmination of a discussion that originated in France around three years ago. The new labelling comes into effect in October 2021, however coating producers are already preparing to revamp their labels and Safety Data Sheets.
The powder coating industry is not standing still. CEPE's powder coating sector group is working with members to draft a position to extend to their customers so they understand the implications of the new ruling. It will contain information regarding the impact of this EU regulation and answers to questions that may emanate from the clients of their customers. In the meantime, the coatings industry and indeed, many other industries that use TiO2 as a colorant, are mounting an effort to challenge this ruling.
In other news, the Corona Virus (CoVid 19), is wreaking havoc across the world. This little known virus appears to have started in Wuhan China and has rapidly spread throughout the world. What makes this virus unique is the high fatality rate compared to more common influenza type viruses. Although most influenza strains exhibit a mortality rate of 1.0% or less, the Corona Virus appears to be significantly higher than that. In addition, the virus is spread rather easily through respiratory exposure from coughs and sneezing. The most at risk population are individuals over 60 and those with compromised immune systems.
The impact CoVid 19 has had on the coatings industry is still evolving. Outbreaks are emerging in Italy, South Korea, Iran and China. New travel restrictions and quarantines are put in place on a daily based at the time of this writing. The massive American Coatings Show has been postponed indefinitely and the 2020 Paint Expo has been rescheduled for a later date due to the uncertainty of how contained the spread of the virus might be. The Middle East Coatings Show slated for 9-11 March in Dubai has also been postponed. Hopefully this scary virus will be quickly contained and we all can get back to planning and running our businesses.
On a more positive note, Sherwin Williams has announced their plans to erect a new business headquarters and research center outside of Cleveland. S-W has been a mainstay in Cleveland since 1866 and their current HQ is housed in a 90 year building. Ground is expected to be broken this year and will include over 1.0 million square feet of offices and about 500,000 square feet of research and development space. The new facilities are expected to host 3500 employees.
The last item of note concerns the profusion of bogus market research. Not a month goes by that I stumble upon the nonsense of a poorly researched market report offered by an “expert” market research firm. Just in the last month, I have found these spurious proclamations, “Powder coating is the most used surface finishing technique” (no, it represents only about 12 to 18% of the industrial coatings used globally), “Epoxies are preferred for their overall physical properties” (no, the consumption of epoxy based powder coatings is about 14% of the powder coating market), “Europe leads the market with a majority market share of more than 30%” (no, the European powder market is about 19.5%, obviously not a majority share. APAC has about 59% share of the global market), “Consistent expansion of global powder coatings industry share can be observed through the rise in research and innovations undertaken by leading market players such as BASF…” (no, BASF does not have a powder coating division), and “International organizations such as the World Health Organization and the United Nations Environment are propelling the growth of powder coatings by forming global initiatives that aim to eliminate lead-painted products” (well maybe, however liquid paints are commonly formulated without the use of lead pigments). The bottom line, my friends, is to be wary of slick marketers who claim they are experts at predicting the future of the powder coating industry. These charlatans “know” what they read from other misinformed market research peers and it only propagates these distortions.