Development strategies for the coating industry in 2018

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From last year to this year, the environmental protection crisis and the surge in prices have forced coating manufacturers to struggle hard to maintain their normal operations; although it seems to be due to rising raw material costs and resulting reduced profits； Environmental inspections; production is not timely. However, in order to offset the negative effects of rising raw material costs, coating companies have worked hard to strengthen their internal capabilities by exploring internal resources, reducing energy consumption, optimizing formulations, improving management, enhancing cohesion, and restructuring their operations. As a result, their soft power has increased; in fact, under such circumstances, these coating companies have seen an improvement in their overall strength and a greater ability to withstand market risks! After eliminating some unqualified companies, malicious competition in the coating market has decreased, paving the way for standardization! Experts say it is urgent for Tuqi to undergo transformation. By March next year, the average PM2.5 concentration in the “2+26” cities is expected to drop by more than 15% compared to the previous year, while Beijing aims for a 25% reduction; these targets are pushing the Beijing-Tianjin-Hebei region to work harder. And polluting enterprises that fail to accelerate their transformation will also face stricter penalties. As a key sector for VOC control, the coatings industry has experienced continuous losses since 2017. Since the most stringent environmental inspections that began in April this year, the policy of \"three cuts and two clear-ups\" has effectively cut off the livelihoods of numerous small and medium-sized coating enterprises that were considered \"disordered, chaotic, and polluting.\" With the introduction of this new measure, even large coating enterprises that cause pollution will face closure. Take Nippon Paint, which had the highest sales volume in China’s coating market in 2016, as an example. Last year, Nippon Paint topped the industry in terms of revenue, with figures reaching 17.82 billion yuan. However, recently, Langfang Nippon Paint Co., Ltd. and Nippon Paint (Hebei) Co., Ltd. were both ordered by the Langfang Environmental Protection Bureau to suspend operations for rectification. Other companies that were also shut down include Langfang Huajiu Coatings Co., Ltd., Bazhou Meino Coatings Co., Ltd., Walvag Coatings (Langfang) Co., Ltd., and others. Since the beginning of this year, its Langfang factory has been included on the blacklist published by the Ministry of Environmental Protection in reports on inspections related to severe air pollution. Subsequently, its Tianjin factory was ordered to suspend operations and fined by the local environmental protection agency on March 27 of this year. In addition, Nippon Paint’s Chengdu factory has also been included in the list of key targets for addressing exhaust gas pollution. Experts say that with increasingly strict environmental policies, it is unlikely that companies like Nippon Paint will be able to make profits at the expense of the environment for much longer. Stay up to date with the times, move forward in step with them, and keep progressing. What is meant by seeking development is to make strategic decisions for the company based on market prospects, to pay close attention to market trends, to develop in line with demand, and ultimately to keep up with the times! Nokia, once the dominant phone manufacturer in the era of 2G feature phones that managed to meet users’ needs, is now unable to keep up with emerging companies such as Huawei and Xiaomi in the smart phone era. The reason for this is its failure to release new models in a timely manner, which has caused it to miss opportunities and created problems for its own development Today, the coating industry is filled with the call of the times: environmental protection, water-based solutions, sustainability, and a livable environment! Will you choose to turn a deaf ear, or stay updated and keep pace with the times? The profits from traditional latex paint are becoming increasingly low, and moreover, most of the market is already occupied by well-known domestic brands. So, insisting on improving latex paint while refusing to introduce new innovations – isn’t that just like Nokia in those days? The environmental protection drive has led to the closure of many colored sand factories, and since natural sand is not an inexhaustible resource, it is necessary to consider what will happen to real stone paint. As for water-based multi-color coatings, they are widely promoted and used in the market! The outlook is self-evident! Large paint manufacturers are working to improve water-in-water formulations and seek developments in water-in-sand technologies, conducting visits and experiments everywhere ； Small and medium-sized enterprises should not underestimate themselves; they are the backbone of our economy and the absolute pillars of the national economy. Therefore, they must seize the opportunities, identify the right direction, and build up technical capabilities. In the rapidly changing world of coatings, who knows – you might not get any projects tomorrow!