18 September 2013 14:03 [Source: ICIS news]
AMSTERDAM (ICIS)--Despite the challenges there are many reasons to be optimistic about the global coatings industry, Charles Bangert, Senior Partner at management consulting firm Orr & Boss said on Wednesday.
Speaking at the second ICIS Chemicals and Coatings Conference in Amsterdam, Bangert said: "Even mature markets like the US and Europe are forecast to have growth over the next five years…but growth rates will vary among the end-use market segments and product technologies."
Bangert went on to say that emerging markets will experience most of the growth, despite recent slowdowns.
"Opportunities exist to provide higher value products to customers in core markets.
"We’re looking at little more than 3% Compound Annual Growth Rate – (CAGR) for coatings volume by 2017," estimating that 2017 global coatings industry volume by region would be at 40bn litres.
"We estimate that that will translate into a $140bn [€105bn) market by 2017.
"It is five years and three days since Lehman Brothers declared bankruptcy," he said. "North America is really the only region that saw negative growth during that time frame [2006-2011]. Since that period, US growth has been in the positive."
He said while the Middle East and Africa have had growth, growth in Europe has largely been in central and eastern Europe.
Bangert added that Asia saw strong growth between 2006 and 2011, largely due to consumption from China, India and southeast Asia, but Asian growth has since tapered down, which has made market players a bit nervous about future growth in the region.
He said Latin America has seen "pretty good growth" led by key countries such as Brazil.
"The fastest growing segments on a global basis are decorative coatings," he added.
The conference will run from 18 to 19 September.
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