PPG : “We can roll out our innovations at high speed”

Alban d'Epenoux: In the collision repair sector, all global markets are under pressure in terms of volume. PPG is in line with the general market trend and is positioned to gain market share in the vast majority of regions thanks to the many innovations launched in recent years. In terms of outlook, analysts confirm that a reversal of the trend is expected in the first half of 2026, with market volumes expected to normalise. The reasons for the current attrition are mainly due to the decoupling of accident rates, which are falling slightly, from the claim rate, which is falling more sharply. This is mainly due to increases in insurance premium rates, which are themselves linked to an increase in the total cost of repairs, with more technology on board vehicles, more ADAS, etc. We therefore remain very attentive to changes in insurers' premium prices. Today, for example, calibrating ADAS after body repairs can take half a day or even an extra day in the workshop, resulting in longer downtime for courtesy vehicles and additional labour costs. These are hidden costs that have a significant impact on insurers, and this trend is global. The year 2025 will therefore have been intense but extremely interesting and beneficial for PPG thanks to its sustained cycle of innovation, particularly in the digitisation and automation of many non-productive activities in the workshop in order to make the painting station more attractive and productive.

A.d'E.: At PPG, in 2025 we rolled out a new global marketing organisation that adds value to all of our customers' business areas in all regions simultaneously. By combining regional marketing structures – close to the ground and attentive to the daily needs and challenges of our customers – with a globalised organisation that creates added value in products and services, PPG has the capacity to deploy its solutions at high speed across all markets worldwide. PPG Mix'n'Shake is the most recent example of this. Global and regional marketing teams worked together to gather customer needs upstream, around the world, and with the same momentum. This enabled us to make a world premiere launch at EQUIP AUTO Paris in October 2025, immediately followed two weeks later by a launch in Las Vegas for the North American market. On the other hand, PPG MoonWalk, which was initially launched in Europe, the Middle East and Africa, is now rapidly expanding into the United States, Canada and South America. In the refinish market, where workshop processes are broadly similar from one region to another, once the fundamentals of an innovation perfectly meet the needs of the industry, the speed at which the innovation is adopted is mainly linked to the level of maturity of the market and its intrinsic economic characteristics. The United States is the region where the return on investment is the fastest because labour is the most expensive there, and so MoonWalk offers an extremely rapid payback there. It is also a region where word of mouth is very strong, so the snowball effect is intense. Body shops enjoy visiting other body shops that already use the solution with our teams and hearing their feedback. In Asia, we install MoonWalk every day in most countries, but as labour is less expensive there, the desired gains are more focused on colourimetric accuracy than on optimising labour costs. In EMEA, it's a balance between all of these factors.

A.d'E.: Productivity drivers will differ from region to region, depending on how workshops pay their teams. In the United States, painters' pay is mainly linked to their individual productivity. Painters are therefore often the driving force behind change, persuading their managers to adopt (or not) an innovation because they want to improve their personal productivity and therefore their income. In Europe, the owner or workshop manager has more say in the roll-out because they are responsible for the overall improvement of processes and productivity in their workshop. The same innovation may therefore meet almost identical needs everywhere, but the person to be convinced (the stakeholder) is not the same everywhere. A single solution is acceptable if the added value is real and proven, but only if the value chain of each market is fully understood. This requires a very high level of ‘customer intimacy’ – the ability to be close to and understand the issues facing workshops – and in particular to detect difficulties that are not visible and very often unspoken. This also enables PPG teams to engage in the ongoing pursuit of improving the customer experience. Overall, the age pyramid is fairly homogeneous across regions: many people in their fifties and older at the head of body shops, challenges in recruitment and business transfer, and a dwindling pool of young people. Automation and digitalisation are essential to attract new talent and create competitive advantages for companies in the sector.

A.d'E.: These principles are perceived very differently depending on the region. The attention paid to environmental issues is not uniform. In the United States, for example, it is governed by the legislation of each state. California is very proactive and ambitious in adopting some of the highest CSR standards in the world, followed by Canada, whose market is 100% hydro. In Europe, environmental policy is centralised and applies to all member countries. PPG is very committed to CSR because it is part of our core values of ‘Protect and beautify the world’. We provide our customers with tools and trackers that assist them in their decision-making and enable them to combine the pursuit of sustainability with the improvement in profitability and productivity necessary for the development of their businesses.

A.d'E.: For Mix'n'Shake, we have rolled out dynamic and systematic training modules across our entire sales force worldwide. New technologies give us the ability to deploy training on value creation and customer benefits in a consistent manner in record time. In a connected and extremely competitive world, speed is the new superpower. The search for innovative solutions to quickly and effectively train our teams and partners, end customers and distributors using digital solutions is omnipresent at PPG, as it determines our ability to provide relevant information to end customers, which is essential to the success of our innovations. This applies to products as well as our services and digital solutions.

A.d'E.: PPG has limited integrated distribution, particularly in Germany, England and Scandinavia, for historical reasons. Relying on strong, independent distributors is a core philosophy at PPG. Our impact and success in different markets are closely linked to the quality of the partnerships we forge with distributors, whether they are exclusive, such as the Platinum network in the United States, or not, depending on the region.

A.d'E.: Thanks to the intense innovation dynamic that PPG has brought to the automotive refinish market for many years, we are delighted with the receptiveness and commitment of all our distribution channels. Now, our distributors ask ‘what's next?’ as soon as we release a new solution. This is currently the case with Mix'n'Shake: we have record adoption levels and a sustained willingness to participate from all our distributors. This collaboration around innovation creates a close relationship with our distributors and a strong desire to deploy new solutions: their teams and our teams are one when they are presenting to the end customer.

A.d'E.: Our markets are of course impacted by the new customs tariffs, but we are working to limit the effects as much as possible by sourcing our raw materials and producing locally whenever possible. For some of our distributors, however, there may be significant impacts depending on the countries in which they source products that are not supplied by PPG, particularly for consumables from China that are imported into the United States.

A.d'E.: The dynamics are relatively different depending on the different regions of the world. The Middle East is very dynamic in terms of volume, as is Asia. However, these two markets are undergoing significant changes in terms of product mix due to shifts in the market shares of car manufacturers. Asia and the Middle East are greatly impacted by the development of Chinese vehicle brands in these regions, which forces manufacturers to work very early on with Chinese manufacturers to ensure that their products will be specified very early in the repair cycle.
In Europe and North America, as mentioned in the introduction, the fundamentals are there in terms of accident volumes, but inflation in insurance premiums has a direct impact on the behaviour of owners of damaged vehicles when it comes to deciding whether or not to have repairs carried out. The democratisation of new in-vehicle technologies should bring these premiums down to reasonable levels in the coming months and years. The competitive advantage offered by PPG's solutions provides a real growth driver for repairers.
What about Africa? It is a dynamic market where Chinese solutions and brands are growing rapidly.

A.d'E.: Some regions are more or less exposed to the emergence of new distribution players, but the real difference lies in the ability of the various forces at play to bring added value to end users. France, for example, is a driving force in terms of digital distribution in Europe, but this remains a special case at this stage. Even if there are opportunities for the emergence of new types of distribution, the ability to be as close as possible to the end customer can only be ensured by a local presence and commercial and technical support within the workshops themselves. However, these new digital models are prompting the entire chain to reconsider and streamline its services and focus on value creation. PPG is naturally attentive to regional brands and players that are growing in certain territories and always listens to its partners, offering products and services tailored to the expectations of these different markets. For example, we recently launched the Velocity brand in the United States in the mid-range segment, where our distributors were looking for product solutions. This demand for a ‘mid’ range offering an effective compromise in terms of colour quality and price positioning is also developing in certain other regions.

A.d'E.: Potential challengers come mainly from Asia, and China in particular, and are mainly targeting the Middle East and African markets. However, it is more difficult for regional players to enter the United States or Europe, as there are significant barriers to entry, both in terms of customs and local legislation, as well as the need for approval by car manufacturers or due to the size of the territory or the presence of existing players.

A.d'E.: There are indeed two levels of consolidation underway. One is at the MSO (Multi Shop Operators) level, large bodywork groups that can sometimes have several hundred workshops, and the other is at the distribution level. The United States is a few years ahead and the consolidation trend is very rapid there. This is also the case in other regions, but at a less intense level, although the process is already well underway. In Europe, this is particularly visible among MSOs in the north of the continent, in Scandinavia and the United Kingdom.

A.d'E.: In China, some traditional car manufacturers are having to close large numbers of their dealerships or workshops, in some cases up to 150 body shops, due to the emergence and market share gains of new electric vehicle manufacturers. The latter are innovating not only from a technological point of view, but also in the areas of distribution and repair, with a very high level of digitalisation of processes. They are building mega repair hubs on the outskirts of large cities, with a strong concierge service approach, and are completely rethinking the customer experience. We can legitimately expect this trend to spread beyond China's borders in the coming years.
Here again, we are talking about concentration: a mega-body shop located outside urban areas can easily replace a dozen traditional workshops located in city centres.

A.d'E.: The area under the most pressure is pigments, due to the shutdown or ongoing consolidation among manufacturers. At PPG, we take a very proactive approach to securing our supplies in order to minimise the impact of any product shortages. However, the supply of pigments is and will remain under constant pressure.