BASF: “Only the question of profitability remains”

Europe held up well in 2022. Market activity is dependent on the mileage travelled, so we are seeing a return to normal in turnover and volumes. On fixed and variable costs – raw materials, energy, supply – there has been an improvement compared to 2021, but the calculation remains complex.

In 2023, activity should remain at the same level, but energy costs will weigh on bodyshops and manufacturers alike. This requires good management, solid technical support and sufficient support to preserve the profitability of our customers. The activity is there, so our distributors are demanding that volumes and growth follow. Only the question of profitability remains, given the production costs.

European distribution has changed due to the phenomenon of concentration that dates back to a few years ago. Our integrated distribution strategy depends on the presence of our different brands in each country and the support of the repair shops. This is case by case and depends on the quality of our partners, so we make choices based on the quality of customer support.

We have our own networks in Germany, Italy, Spain, Belgium, the Netherlands and Switzerland. Where we do not, we are looking into it, but still looking for good partners. Our brand strategy is also adapted to each country and to market development. The history that R-M and Glasurit have is very important.

Digitization will accelerate and we need to be active at all levels, on the distribution side as well as in workshops. Eco-responsibility is also an issue, the sector must adapt, and the BASF brands strive to demonstrate their respect for sustainable development, for the bodyshop and the distributor. We can also help customers control their energy costs.

There is a direct link between the products we offer and the savings generated. France is well placed in this CSR approach, but we have the impression that the Italian market is much more receptive to it, as is the UK market, where the entire sector is more sensitive to it.