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The future of industrial coatings is bright: multiple forces drive the strong development of industrial coatings

  • Categories:Company news
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  • Time of issue:2019-09-26 18:52
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(Summary description)Industrial coatings industry players have a bright future in the near future. In addition to favorable factors such as low economic interest rates, abundant cash from participants, and active M & A markets, there are also specific factors that are driving the industry's positive development. Many companies are introducing innovative technologies as customer demand continues to grow, end markets such as automotive and aerospace are growing, and the global regulatory environment is constantly changing. In this article we explored several key industrial coatings market drivers, as shown in Figure 1. In the foreseeable future, those participants with accura

The future of industrial coatings is bright: multiple forces drive the strong development of industrial coatings

(Summary description)Industrial coatings industry players have a bright future in the near future. In addition to favorable factors such as low economic interest rates, abundant cash from participants, and active M & A markets, there are also specific factors that are driving the industry's positive development. Many companies are introducing innovative technologies as customer demand continues to grow, end markets such as automotive and aerospace are growing, and the global regulatory environment is constantly changing. In this article we explored several key industrial coatings market drivers, as shown in Figure 1. In the foreseeable future, those participants with accura

  • Categories:Company news
  • Author:
  • Origin:
  • Time of issue:2019-09-26 18:52
  • Views:
Information
Industrial coatings industry players have a bright future in the near future. In addition to favorable factors such as low economic interest rates, abundant cash from participants, and active M & A markets, there are also specific factors that are driving the industry's positive development.  Many companies are introducing innovative technologies as customer demand continues to grow, end markets such as automotive and aerospace are growing, and the global regulatory environment is constantly changing. In this article we explored several key industrial coatings market drivers, as shown in Figure 1. In the foreseeable future, those participants with accurate market positioning will take advantage of these trends to obtain huge profits. The industrial coatings in this article are broad, including OEM coatings for automotive, aerospace, and other uses; general industrial topcoats for buildings, machinery, coils, and electrical insulation; and industrial maintenance and protective coatings.
 
Growth in the automotive and aviation industries, recovery in the oil and gas industry.
 
For the automotive and aerospace industries of the cyclical oil and gas industry, those who are able to adapt to changing customer needs and effectively use mergers and acquisitions to enhance their strength and achieve sustainable development, the short-term outlook is optimistic.
 
The two major industrial coatings end markets, the automotive and aerospace industries, have grown strongly in recent months. The US young car sales in 2016 rebounded from the low point of the decline to an unprecedented high of 17.6 million, and the Chinese car sales reached 24.4 million in 2016, a year-on-year increase of 15%. 1,2 Although the growth in 2017 has slowed due to the gradual reduction of auto purchase tax preferences in China, overall demand is expected to continue to rise. In 2017, Chinese automakers are expected to usher in a 5% increase in car sales.
 
Due to the slowdown of organic growth in the automotive industry, some companies are using M & A as a new strategic tool to accelerate growth and improve core competitiveness. Axalta, separated from DuPont, is a leading practitioner of this strategy. As a leader in automotive exterior coatings, the company has completed a total of 8 acquisitions since mid-2015, including the acquisition of United Paint's global automotive interior hard thermoplastic coatings business. In the course of the transaction, GraceMatthews provided transaction consulting for it, and found strategic buyer interest points in the business, showing the company's overall strength in the M & A market. In most of Axalta's acquisitions, the companies being acquired are mostly smaller private companies that can integrate into Axalta's existing businesses and produce important synergies.

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