Government has taken unprecedented measures to slow the bleeding with its $700 billion bailout package without anyone really knowing how it's getting spent and who is watching over. With a new Democratic president set to take office and all this never-before-seen government taking ownership of industry in this country, it will be interesting to see just how, and when, the economy is back on course. Unfortunately, this is going to take time. Some analysts predict this won't happen until at least the third quarter of 2009 and that is an extremely optimistic estimate.
During these troubling economic times, paint makers are bearing down for what is sure to be a grim year ahead. Throughout the paint and coatings supply chain companies are ramping up cost-saving plans and laying off workers.
Though its only January, when I look into my crystal ball I see cutbacks, closures and consolidation as the major themes dominating headlines for the year ahead. Small- to medium-sized paint firms in North America and Western Europe are going to be hurting the most as they try to hang on.
Though 2009 may not bring any blockbuster deals like AkzoNobel's acquisition of ICI and PPG's taking over of Sigma≠Kalon, the large multi-national paint firms will use the down economy as an opportunity gobble up market share from the smaller players who can't survive. Let's face it, unless you have the infrastructure in place to expand operations to the world's growth markets and the R&D budget to pour into newer "green" paint formulations, it's going to be hard to stay afloat.