June 2018 Newsletter • Your Idea. Our Solution.™
DCC® Lansco is committed to providing high-quality pigments for the coatings, plastics, inks, and dispersions industries.
Highlights from this issue:
- Interview with David Wawer: Executive Director at the CPMA Shares Insights on the Pigments Industry
- Five Necessary Technical Requirements for Automotive Coating Applications
- Top Colour Trends this Summer!
- Customer Satisfaction Survey: Tell us How We’re Doing!
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Interview with David Wawer:
Executive Director at CPMA Shares his Insights on the Pigments Market
David Wawer was named Executive Director of the Color Pigments Manufacturers Association (CPMA) in 2014. Prior to this, he was CEO of the Massachusetts Chemistry Technology Alliance for almost 12 years. He also has experience in Government Relations as part of the American Chemistry Council. We were very fortunate to have the opportunity to speak with David about his thoughts and opinions on the future of the pigments market. Dr. Bruce Howie (Global Product Marketing Manager) led the interview and what follows is a synopsis of the discussion.
What does the future of the pigment industry look like in North America (NA)?
Let’s start by focusing on the manufacturing side of the pigments industry. Starting about 15 years ago with the emergence of Asian producers of colour pigments in China and India, we’ve seen a steady consolidation of companies. In that process, we’ve seen many manufacturing sites close – Clariant in Rhode Island, Sun Chemical in Muskegon, BASF’s azo pigments plant in Kentucky and their CIBA site in Scotland, and as of last year, the Flint Group closed its West Virginia site and struck a global deal with Huber Group to produce their pigments. The capacity or need for pigments is now being filled by sources outside of NA; it is suggested that more than half of colour pigments are coming from Europe and Asia. I don’t anticipate there will be more manufacturing sites built in NA in the foreseeable future.
In terms of pigments products, growth is anticipated in several different market segments. In the ink world, there has been a gradual increase in the demand for digital printing inks and packaging inks. If you think about it, within the population in China and India, how many of these people are middle-class consumers? The middle-class in China and India is rapidly growing and expected to amount to approximately 1 billion within 10 years time. These markets require typical consumer products, and with this in mind, we can expect the packaging inks market to significantly increase. This could even include the continent of Africa that might begin to grow a middle class over the next 20-30 years. As the middle class emerges worldwide, the personal products and cosmetics segments can expect to grow as well. North American producers can sell globally to serve these markets. I don’t see any regulatory barriers to consumer product growth. In the coatings market, the economic projection from the trade press is reporting growth in the billions globally for coatings sales. Unless the coatings companies come up with a plan to further ‘light-weight out’ pigments, this should mean growth for the pigments industry as well. While Canada’s economic growth appears to be relatively flat right now, the economy in North America is positioned for a continued steady growth potential for colour pigments.
What are the industry’s major challenges?
Since the 80s and 90s, we’ve seen environmental and health groups shift their focus towards what ingredients are actually in products rather than the impact that manufacturing sites are having on their local populations.
How does this impact the market? If you have a government entity that starts to investigate a certain aspect of a product, it could have implications in the countries to which it is sold. For example, right now in Europe there is a discussion about elevating the carcinogen designation of titanium dioxide. This could have repercussions in Europe and NA, where the governments tend to be more strict and reactive. We anticipate the result of this designation could have reverberations in the next year or so, but we don’t know how it will play out.
What are the Opportunities in the Pigments Market?
Opportunities for the pigments market lie in the regions where the middle class is growing and/or is expected to grow. As mentioned previously, this includes Asia and India, and in the future, Africa. We might see demand flatten in Europe, however, there may be variances within the continent; Western Europe might stay the same while we could potentially see growth in Eastern Europe. There could be real consumer growth in Russia in the future, but that would likely depend on the state of government.
In NA, growth is expected to be steady over the next eight to 10 years. While it has been stagnant for the last few years, it is starting to take off. In the coatings architectural market, I think we will start to see new types of construction of “smarter” buildings. As new properties are being built in cities, or new housing, we’re going to see opportunities in the coatings space (ie. coatings for interior and exterior applications, roofing materials, etc.). I can’t speak to the coatings market for automobiles, but it doesn’t appear that people are purchasing any fewer cars. Currently, the trending colour worldwide for cars is white, however, there might be an opportunity for a rebirth of blues or greens in the automotive space – at least in NA
What factors might affect the growth of the inorganics pigment market?
This is where regulations or drivers from Europe might impact North America. Europe has quite a stringent approach when it comes to chemical regulations. Canada has been evaluating chemicals for years and has put some (but few) restrictions on them. However, the US has been lagging and is only now starting to initiate this process. If Europe’s or ECHA’s decision making started to influence the North American market, it could force more scrutiny on the inorganics market.
The REACH or ECHA decision on registration of complex inorganic pigments could also impact this market over the next three to five years. The guidance document defining how these products should be classified hasn’t been finalized, however it will determine how many existing inorganic colour pigments may have to be re-registered as new products. That could have a significant impact in the US and Canadian chemical inventories, as companies that have been selling a product for decades would need to re-register it.
The lead chromate pigment market has been refined to serve only industrial and professional markets. There is definitely an opportunity to sell more lead chromate pigments in developing countries where they would be needed for architectural (new buildings) and industrial (new construction equipment) purposes. There generally are fewer regulations in these regions regarding what types of pigments can be used. To my knowledge, there haven’t been any new lead-related laws in North America or Europe. I also don’t see the metals in colour pigments as a focal point over the next few years.
What do you enjoy most about the pigments industry?
I like this industry for its diversity. It provides the opportunity to educate government officials and other stakeholder groups about the diversity of colour and all the different applications for which colour pigments may be used. There is so much science that goes into not only making the colours, but into the companies’ decisions to manufacture or emphasize certain colour pigment lines. There are also significant differences in colour preference by geographical region, and I enjoy sharing this with others. I also am learning new things. There are so many opportunities for pigments manufacturers today. It will be interesting to see what the future holds!
We’d like to thank David Wawer for providing his expert thoughts and opinions on this subject matter!
FIVE NECESSARY TECHNICAL REQUIREMENTS
FOR AUTOMOTIVE COATING APPLICATIONS
There are many key factors that come into play when someone is deciding on which car to purchase or lease, such as reliability, fuel efficiency, safety, etc. However, the second top reason for choosing a car is the exterior style – how the car looks on the outside is more important to the majority of consumers than how it looks inside.i This includes the colour of the car. Cars are a huge expense, and therefore, it is important that the exterior style of the car is maintained, especially the colour. Ensuring that car manufacturers are using high-performance pigments designed specifically for automotive purposes is crucial.
The top technical requirements to look for when selecting pigments for automotive purposes, include:
- Weatherfastness: Consumers pay a lot to own or lease a car. Therefore, they expect over the car’s lifetime, the colour will not fade. Therefore, selecting a high performing pigment with excellent weatherfastness properties is critical for optimizing the durability of the coating.
- Colour Strength: Pigments with increased colour strength/chroma allow for much brighter and vivid shades that appeal to customers.
- Reduced Flop: The way a colour appears at different viewing angles is referred to as flop. It is imperative that pigments designed for automotive applications have a reduced amount of flop, in order for the colour to appear uniform at all angles.
- Transparency: In many coatings applications, higher opacity is desired. However, coloured pigments for automotive applications are often mixed with metallic pigments to create bright special effect finishes. It is important that these pigments are more transparent to optimize the desired effect in conjunction with aluminium or mica pigments. optimize
- Dispersion Characteristics: Pigments with enhanced rheological stability permit the manufacturer to optimize the dispersion characteristics within their coatings system. This is important to ensure that no defects (ie. orange peel, fish eyes, etc.) occur, as that would a very expensive fix.ii
Looking for a pigment for OEM, refinish, fleet or automotive applications? We’ve got all the colours you need, developed specifically for these applications. Check out our website today for more details.
Top Colour & Design Trends this Summer!
It is no surprise that everyone has their own taste and style when it comes to interior decorating and painting! However, there are some key trends emerging this spring and continuing into the summer months. These include iii, iv:
- Soft “Ice Cream” Colours
Some of the most popular colours we’ll see in the home include a number of pastels – strawberry pink, minty fresh green, and light peaches.V For those who love pastels, painting an accent wall or even an entire room one of these colours is a great idea. Small accents can also be added to any room – blankets, decorations, pictures frames, and more!
- Bright Colour “Pops”
Not a fan of the pastels? Try pops of colours! While this certainly isn’t a new phenomenon, summer invites colour into everyone’s home. The sun inspires us to brighten our houses up, even if it is just a simple change of pillows, brightly coloured vase, or introduction of a vibrantly coloured flowers. Indigo blue in particular is a beautiful colour to spruce up your house this summer, providing a beautiful bright colour while also creating a calming feeling to one’s home.
- “Glittery” Gold
This brilliant gold coupled with dark colours, any room will appear elegant while also very trendy. Switch up your décor and add some statement pieces to your house – a beautiful new gold rimmed mirror, a new gold desk, side table with touches of gold, etc.
Feeling inspired? Add any of these styles to your home by doing it yourself! Buy a canvas and some paint to create your own work of art or paint a plant pot or a wine bottle a bright, pastel, or metallic colour based on your own style! There are many ways to achieve these styles without breaking the bank!
Make sure you know what the trending colours are so you can properly inform your customers – they will appreciate it! DCC Lansco is able to provide the pigments you need to create soft, bright, or dark colours. We also have a custom colour matching service available online – please visit our website or contact your local sales representative to find your perfect colour match!
Customer Satisfaction Survey: Tell us how we’re doing!
To all of our customers and distributors, we would like to sincerely thank you for your business! We value your opinion and encourage you to fill out our 3-minute Customer Satisfaction Survey. Thank you in advance!
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About DCC Lansco
DCC Lansco is a manufacturer and supplier of pigments for our customers in the coatings, plastics, printing ink and paper industries worldwide. Our extensive range of pigments is backed by technical expertise, our commitment to service excellence, continuous improvement, environmental, health, safety and social responsibility. Please visit www.dominioncolour.com for more information on our product range.