Sector Focus: Coatings & Finishes | 41
Above: Prices for raw materials seem to have stabilised, albeit at a higher level than 12-18 months ago
A response was initially due around October 2024 but has been put back to 2025. This is because the new government wants to explore what might be possible in terms of greater co-operation and alignment as it discusses the future of the existing Trade and Co-operation Agreement (TCA) with the EU. Both the Chancellor and the PM referenced trying to obtain a ‘bespoke’ deal on chemicals, although we have little more detail as to what that might mean. Data sharing on chemicals? Some sort of associate membership of ECHA (although this was rejected in the initial negotiations for the TCA four years ago)? Greater alignment more generally? Something akin to the ‘Swiss’ model? We don’t know, but until there have been conversations about this new TCA approach (which the EU would have to agree to, of course) it seems likely the ATRm proposals will remain on the backburner.
TTJ: AMENDMENTS TO EU REACH WERE DELAYED UNTIL AFTER THE EUROPEAN ELECTIONS IN JUNE – CAN YOU UPDATE US ON THAT AND HOW THEY MIGHT IMPACT YOUR MEMBERS? DP: The EU REACH revisions were indeed delayed and the Commission and Parliament are in talks about what this might now entail, as well as a timeline. Clearly this is something we are invested in in the UK as our members still have to manufacture to EU standards to be able to export there. Moreover, with the UK effectively still running REACH in the way it was on the day of Brexit, any changes in the EU will mean greater divergence between the two regimes which, in turn, means it becomes harder and more costly to keep up with. We are grateful to colleagues in the European Council of the Paint, Printing Ink and Artists’ Colours Industry (CEPE) for helping us and our
members stay up to date with changes and we will always look to reciprocate on that information exchange in terms of changes happening in the UK.
TTJ: IS THE UK STILL A NET EXPORTER OF PAINT? DP: Yes! Although the total has dropped a little in recent years, the UK coatings sector – paint, coatings, inks and wallcoverings – remains a net-exporter, to the tune of nearly a billion pounds a year.
TTJ: RAW MATERIAL PRICES STARTED TO DROP TOWARDS THE END OF 2023 – DID THAT CONTINUE INTO 2024? DP: There was a steady drop back in raw material prices at the start of the year but this seems to have tailed off towards the end of 2024. Overall, it looks as though prices have stabilised but they still remain much higher – as much as 20% in some cases – compared to about a year to 18 months ago. The good news is there don’t seem to be bigger increases on the immediate horizon, although any geo-political changes in 2025 always run the risk of kick-starting more problems.
TTJ: HOW HAS THE MARKET BEEN FOR WOOD COATINGS MANUFACTURERS THIS YEAR? DP: 2024 was largely flat in terms of sales from manufacturers into the supply chain. This suggests demand from consumers has also been flat – a trend we also see in decorative paint, and in industrial coatings. The main trend we have seen in 2024 in woodcare is the shift from selling product through traditional DIY retailers into trade retailers like decorator’s centres. However, DIY still makes up the bulk of sales. We hope consumer confidence will pick up in 2025.
TTJ: WHAT IS THE LATEST NEWS ON BCF’S NET ZERO BY 2050 AND ON THE NET ZERO ROADMAP, WHICH YOU LAUNCHED THIS TIME LAST YEAR? DP: We are in the process of planning an update to the 2023 Net Zero Roadmap. This will include a new data-collection process from members so we can measure progress made in carbon emission reductions over the past couple of years. This is a big undertaking for us and our members and will take some time to complete. We will also look to update other aspects of the roadmap, including adding case studies where members and companies from similar sectors have done well and links to government support and resources that could help companies make more progress in future. That will probably be published towards the end of next year.
Before that we are hosting what is now our annual Net Zero seminar in March 2025, focusing on scope 3 emissions.
TTJ: WHERE DO YOU THINK THE CHALLENGES AND OPPORTUNITIES WILL COME FROM IN 2025? DP: Any more geo-political shocks – military actions, tariff wars etc – will be the biggest source of challenges. They are also out of our control.
In terms of opportunities, the new UK government is promising increased expenditure on infrastructure and housing, which should create scope for members to sell their products. Likewise, the continued drive for Net Zero and more sustainable products will generate opportunities for members who can come up with effective and more environmentally-friendly products to meet the growing demand from all sorts of different sectors. ■
www.ttjonline.com | January/February 2025 | TTJ
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