PPG: “The paint distribution model is not in jeopardy”
For the last issue or our Atlas, Arnaud Racapé deciphers the face of the European paint market in 2022 and discusses the outlook for 2023.
In 2021 we saw several rebounds after the “Covid year” 2020. Sales volumes were extremely good, even if it was a difficult year in terms of raw material costs. In 2022 this trend continued for all paint manufacturers. We had hoped that the upward drift in raw material costs would stop this year, but that has not been the case, especially since energy inflation has been added to the mix. We are counting on some stability because this is a disabling situation for all in the value chain.
As these are not “marketing” increases but increases due to raw materials, PPG decided to apply the same price increase in all European countries during the last two price adjustments. PPG is the paint manufacturer with the biggest presence on the ground, both commercial and technical, and assistance and advice have become keys to supporting our bodyshop customers, as close as possible to the reality of their daily lives. In January 2023, we are releasing the PPG Energy Calculator so that they can select the products that cost them the least in energy and CO2 emissions. We have also lowered the price of an air-drying product to help them save money. We continue to trust our network of distributors to position our offer well. I do not believe that their model, even with free services, is in danger because advice and the human aspect remain essential, especially in times of crisis.
The device promises refinishers 10% savings in product, 10 to 12 minutes of time savings per colour, perfect reproducibility of the colour and it is also an asset for retaining their staff. MoonWalk was therefore THE good idea. We have 1,350 in Europe and 250 in France, all of which have been invoiced, proof of the profit generated by the machine. All this in three years as we started at the beginning of 2020. Given the number of machines, PPG has won the battle and we have a genuine leadership position in automated preparation. Some automotive groups have ordered ten from us, despite the high investment that this represents in view of the current economic situation.