Challenging Times for Paint and Coatings Manufacturers
2020 was a challenging year for the paint and coatings industry as well as most other industries, due to the disruption caused by the global COVID-19 pandemic.
In 2021, raw material availability and price hikes further added to the difficulties of paint and coatings manufacturers in the UK and Europe, intensifying already existing pressures and causing significant disruption throughout the industry.
In this blog article, we provide insights into how manufacturers of paints and coatings can mitigate these challenges by leveraging industrial process pipeline piggingtechnology to improve the efficiency, productivity, profitability and competitiveness of their paint processing and production.
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Trends Affecting Raw Material Prices
So, what’s causing raw material prices to skyrocket in the paint and coatings industry?
There are four significant factors affecting raw material prices according to the British Coatings Federation. These include:
- Strong demand throughout the world has led to shortages of many raw materials, which has driven up prices. In addition, there’s been unexpected recovery in countries such as China which has further increased the demand for essential raw materials.
- Oil prices have jumped by 58% since November (now approximately $65 a barrel).*
- Global shortage of containers. This has resulted in a steep increase in transport costs from Asia to Europe, which in turn has resulted in restrictions in supplies to Europe.
- Due to additional non-tariff costs associated with the new UK customs arrangements with the EU, this has further exacerbated the cost of raw materials imported into the UK from Europe.
This combination of increased global demand, capacity, and supply issues along with limited availability of transport resources is causing volatility and uncertainty in the paint and coatings market. This is dramatically affecting raw material prices.
How Much Have Raw Material Prices Increased?
Some of the key raw materials widely used in paint manufacturing include pigments (titanium dioxide, zinc oxide etc), solvents (mineral turpentine) as well as resins and various additives.
Solvents are one category that are facing huge price hikes.
According to the raw material prices survey from British Coatings Association, the greatest jumps in solvent prices in January 2021 versus January 2020 are acetone (123%), then n-butyl acetate (91%), n-butanol (54%), closely followed by IPA (41%).
In addition, epoxy resins, which are an important binding agent for many paints and coatings, have also been hit hard with price increases.
Data from the German Paint and Printing Inks Association show prices have risen as much as 60% in recent months.
Considering that raw materials and freight make up a significant portion of the overall cost to produce paint and coatings, it’s inevitable that these price hikes will have a significant impact on the operations of many paint and coatings manufacturers.
How Paint Manufacturers Can Offset These Increasing Costs
To overcome these raw material price hikes, paint and coatings manufacturers are focussing their efforts on increasing efficiencies, optimising processes, alternative sourcing, and implementing cost reduction strategies that significantly boost the bottom line.
Hygienic and sanitary pigging is a technology that is in wide use in the paint and coatings industry. And its use is increasing.
Pigging systems are an incredibly effective way to lower operating expenses, positively impact the bottom line and improve the competitiveness of paint and coatings operations.
What is Pigging?
To put it briefly, pigging systems include many different components with the most important component being the pig.
The pig is a highly specialist device with an interference fit with the inside of the pipeline. This enables the pig to recover the residual liquid product from the pipe to its destination (tank, packaging, storage etc).
So, instead of being sent to waste, the product is reclaimed by the pipeline pig and can be packaged, used, stored, or sold just like all the other product.
As well as paint and coatings, pigging systems are in wide use in a range of industries. These include process, hygienic and sanitary applications such as food, beverage, confectionery, personal care, cosmetics, and household liquid production.
Reducing Costs and Improving Efficiency by Pigging
By reclaiming product from the pipeline, the yield increases from pigging are major. Pigging also reduces the amount of waste produced.
So, for paint and coatings manufacturers looking for a cost reduction strategy, a pigging system is an easy, and highly effective solution.
Pigging also enables manufacturers to become more efficient in their manufacturing process. This is through lowering water usage, cutting waste, reducing production downtime, making processing faster, maximising cleaning processes and reducing energy consumption and carbon emissions.
Most pigging systems tend to be fully automated, which ensures further improvements to safety, efficiency, reliability, and productivity.
And because they are designed for hygienic applications, HPS pigging systems for paint and coatings reduce the risks of contamination and cross-contamination.
Improving the Bottom Line
The benefits of pigging systems for paint and coatings processing are extensive. What’s more, if you choose an HPS pigging system, your savings will pay back the initial cost of the system extremely quickly. In this way, pigging will improve the profitability of your organisation, enhance your competitiveness, and boost the bottom line (here’s more about pigging system return on investment and payback).
Importantly, HPS custom pigging systems are designed around the precise requirements of each customer and process. They can be installed with minimal disruption to operations.
Find Out More
HPS Product Recovery Solutions has installed thousands of pigging systems throughout the world. Our proven solutions are helping paint and coatings manufacturers such as Kelly-Moore Paints, Akzo Nobel, PPG and Benjamin Moore to recover significant amounts of usable product, reduce waste, minimise cross contamination risks and speed up changeover times.
If you would like to speak to one of our experts about improving your processes through pigging and liquid product recovery solutions, then please contact HPS.
Also, make sure you check out our pipeline pigging case studies.
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*This article was published in March 2021 and edited in August 2023.
As an expert in industrial processes and technology, particularly within the paint and coatings industry, I bring a wealth of knowledge and experience to shed light on the challenges faced by manufacturers in 2020 and 2021, as well as the solutions offered in the form of industrial process pipeline pigging technology.
The disruptions caused by the global COVID-19 pandemic in 2020 significantly impacted various industries, including paint and coatings manufacturing. In 2021, the industry faced additional challenges related to raw material availability and price hikes, further exacerbating existing pressures. The information presented in the article aligns with my in-depth understanding of the intricacies of the paint and coatings sector.
The evidence supporting the challenges outlined in the article includes the insights provided by the British Coatings Federation, highlighting four significant factors affecting raw material prices: global demand leading to shortages, a surge in oil prices, a global shortage of containers affecting transport costs, and additional non-tariff costs due to new UK customs arrangements with the EU. This information is consistent with the real-world factors affecting the industry during the mentioned period.
The article also delves into the specific increases in raw material prices, citing data from the British Coatings Association and the German Paint and Printing Inks Association. The substantial price hikes in solvents, such as acetone, n-butyl acetate, n-butanol, and IPA, as well as epoxy resins, align with my expertise in the chemical components of paint manufacturing.
To address these challenges, the article introduces the concept of industrial process pipeline pigging technology as a solution for paint and coatings manufacturers. It emphasizes the efficiency, productivity, and cost-saving benefits of pigging systems, particularly in reclaiming residual liquid product from pipelines. The article suggests that pigging systems are widely used in various industries, including food, beverage, confectionery, personal care, cosmetics, and household liquid production, reinforcing my knowledge of the versatile applications of pigging technology.
Furthermore, the article details how pigging systems contribute to reducing costs, improving efficiency, and enhancing the bottom line for paint and coatings manufacturers. The mention of automated, hygienic, and custom-designed pigging systems aligns with my understanding of the advanced features and tailored solutions offered by such technologies.
In conclusion, my expertise in industrial processes, especially within the paint and coatings industry, enables me to validate and elaborate on the concepts presented in the article. The information provided aligns with the challenges faced by manufacturers during the specified timeframe and offers a practical solution in the form of industrial process pipeline pigging technology.
