Market outlook: PPG focuses on market-driven innovation, new coatings functionality

PPG is driven by market-focused innovation, investing around 3% of sales in research and development (R&D) consistently through the years. In 2014, the company spent more than $500m on R&D, or 3.2% of sales of $15.4bn. It employs over 3,000 “science and technology professionals” worldwide, with around 650 near its headquarters in Pittsburgh, Pennsylvania, US.

“We spend more as a percentage of sales versus the competition. Technology is core to our values and value proposition,” said Charles Kahle, PPG’s chief technology officer.

One of the biggest themes is energy efficiency, and that permeates across the automotive, aerospace, marine and construction sectors.

Lightweighting is critical for automakers to meet US CAFE (fuel efficiency) standards. PPG is developing thinner coatings and glazes, as well as sealants to reduce weight. PPG’s proprietary process to apply auto OEM coatings in a “paint shop” involving the application of multiple layers using fewer steps and fewer ovens, can save up to 30% in energy costs, the chief technology officer said.

“This has been commercial for several years and is growing rapidly, especially in Asia,” said Kahle.

Also boosting fuel efficiency is PPG’s precipitated silica used in tyres to improve rolling resistance.

And in aerospace, where new commercial planes are built specifically for fuel efficiency, thinner coatings and lightweight sealants can make a difference – over 1,000 lb for a jumbo jet, noted Kahle. Also, reflective coatings on an airplane keeps it cooler on the inside, lessening the need for air conditioning (AC) and the size of the AC system needed on board.

PPG’s marine coatings featuring anti-foulants for the bottom of ships also improve fuel economy by preventing the build-up of biomaterial, thus reducing drag.

While the company keeps track of developments in bio-based intermediates for coatings, “the market is not demanding bio-based right now. It’s still a cost and performance decision. We are strongly aligned with the market and our customers, and they are more focused on energy and water reduction,” said Kahle.

“In the future, more and more functionality will be built into coatings,” he added.