Yogender Malik, India, Asia-Pacific Correspondent11.06.19
Established in April 1948 as a voluntary organization of the paint manufacturers industry, the Japan Paint Manufacturers Association (JPMA) was converted into an incorporated body to continue its activity as a nationwide organization in 1986.
Consisting of about 258 members (including leading paint producers and companies engaged in paint related industries), JPMA plays an important role in the Japanese industry as a member of the Federation of Economic Organizations and the Japan Chemical Industry Association.
Hideo Nakamura, executive director of JPMA shared his view on the current status of the Japanese paint industry and JPMA initiatives of promoting it.
Coatings World: What is the general outlook of the paints and coating industry in Japan?
JPMA: Since the global financial crisis in 2008, the Japanese paint industry has been hovering at the same level, but for the last two to three years, the automotive sector and industrial sector are pulling the industry, recording a slight increase. We’re expecting a slight increase for the first half of 2019 FY (April-September 2019). However, during the second half of the current financial year, a slowdown trend is predicted, as a result of which, the overall paint industry during the year is expected to end up at the same level as the previous year. Among the two major sub-segment of the industry, the architectural segment is witnessing growth as Japan’s construction industry is registering favorable growth since October 2018. Prior to that period, negative growth was recorded in the construction sector for two consecutive years. The increase of consumption tax in Japan in October 2019 would be the main factor for a positive move (last-minute surge in demand before the increase). However, post that period, this sub-segment is expected to face headwinds. The automotive segment has been registering modest growth rates for about three years, but there’s a sign of slowing down due to the sluggish global economy and increased consumption tax.
CW: What is the approximate current size (volume and value) of the Japanese paint and coating industry? What is the split between the architectural and industrial segments?
JPMA: During the year 2018, the total paint industry shipment registered a total volume of 1.5 million tons. On a value basis, the total shipment was 650 billion JPY. On a volume basis, architectural sub-segment accounts for about 57 percent of the total industry, while industrial sub-segment accounts for the balance of 43 percent of the industry.
CW: How has the JPMA initiative of the abolition of lead in paint in Japan except for specialized usage by the end of 2019 fared?
JPMA: The Japanese paint industry has achieved very significant progress in the abolition of lead used in the paint industry. JPMA regular members are expected to abolish production and sales of lead paints by the end of FY 2019 (March 2019) except for limited special usage.
CW: What are some of the largest challenges facing the Japanese paint and coating industry? How is JPMA helping the domestic producers to overcome them?
JPMA: Stagnating paint demand, workforce shortage and promotion of environmentally friendly paint products are three of the largest challenges facing the Japanese paint industry. In order to increase the paint demand, JPMA, in association with paint producers, is promoting interior coatings by organizing campaigns targeting DIY at homes and supporting re-painting projects at kindergartens or schools. We are putting a special focus on increasing and promoting value-added paints. In order to overcome the labor shortage, we are working on the improvement of productivity. JPMA has established a working group on this issue and is working on it. To increase the usage of environmentally friendly products in the country we have established JIS (Japan Industrial Standards) on waterborne heavy-duty anti-corrosive paints. Currently, we are promoting this standard to national/local bodies.
CW: The Japanese economy, which had been temporarily weak due to several factors, including impacts of natural disasters such as heavy rains, registered slow growth rate in fiscal 2019. How has it impacted the domestic paint industry?
JPMA: To some extent, the Japanese paint industry has been impacted by natural disasters in recent years. For example, in August 2018, typhoon No. 21 caused serious damage around the western part of Japan. Many paint manufacturing facilities were also damaged, suspending production temporarily. Japanese GDP was dragged to minus level, but it was a short-time impact and recovered in time.Also in 2019, numerous natural disasters are observed, but its economic impact is limited. However, we consider the main factor of a slower GDP growth rate is largely due to the effect of the sluggish global economy.
CW: Paints and coating consumption in Japan is markedly different from other countries in Asia, such as China and India, due to a very strong automotive and shipbuilding industry. Do you see this consumption pattern to continue?
JPMA: The largest demand sector of the Japanese paint industry is decorative (construction), followed by the automotive sector. This proportion is expected to continue in the future. Decorative paint producers are increasing their sales by raising the volume of value-added products in their offerings. Automotive demand has been increasing for the last three years.
CW: Per capita consumption of paints and coatings in Japan is higher as compared to most of the Asian countries, but it is low as compared to some of the European countries. Being, one of the most industrialized countries, don’t you think it is on the lower side?
JPMA: According to our source, per capita consumption in Japan is about 10 kg. This figure is low as compared to per capita consumption figures in some of the European countries. The low per capita consumption in Japan than European countries is mainly because the consumption of decorative paint in Japan is only about one-third of Europe. Paint is hardly applied in our country for the interior of residential homes/buildings. However, as I mentioned... we are targeting to promote the usage of more and more paints in this sub-segment.
CW: Green or environmentally friendly paints have almost become a norm in developed countries. What is your take on this sub-segment in the Japanese paint industry? Approximately what proportion of total sales do these products constitute in the domestic market?
JPMA: Expanding the usage of environmentally friendly paint is an important issue for us. There’s no exact data on current proportion, but waterborne and non-solvent type makes about 53 percent of the total market, on the volume basis.
Consisting of about 258 members (including leading paint producers and companies engaged in paint related industries), JPMA plays an important role in the Japanese industry as a member of the Federation of Economic Organizations and the Japan Chemical Industry Association.
Hideo Nakamura, executive director of JPMA shared his view on the current status of the Japanese paint industry and JPMA initiatives of promoting it.
Coatings World: What is the general outlook of the paints and coating industry in Japan?
JPMA: Since the global financial crisis in 2008, the Japanese paint industry has been hovering at the same level, but for the last two to three years, the automotive sector and industrial sector are pulling the industry, recording a slight increase. We’re expecting a slight increase for the first half of 2019 FY (April-September 2019). However, during the second half of the current financial year, a slowdown trend is predicted, as a result of which, the overall paint industry during the year is expected to end up at the same level as the previous year. Among the two major sub-segment of the industry, the architectural segment is witnessing growth as Japan’s construction industry is registering favorable growth since October 2018. Prior to that period, negative growth was recorded in the construction sector for two consecutive years. The increase of consumption tax in Japan in October 2019 would be the main factor for a positive move (last-minute surge in demand before the increase). However, post that period, this sub-segment is expected to face headwinds. The automotive segment has been registering modest growth rates for about three years, but there’s a sign of slowing down due to the sluggish global economy and increased consumption tax.
CW: What is the approximate current size (volume and value) of the Japanese paint and coating industry? What is the split between the architectural and industrial segments?
JPMA: During the year 2018, the total paint industry shipment registered a total volume of 1.5 million tons. On a value basis, the total shipment was 650 billion JPY. On a volume basis, architectural sub-segment accounts for about 57 percent of the total industry, while industrial sub-segment accounts for the balance of 43 percent of the industry.
CW: How has the JPMA initiative of the abolition of lead in paint in Japan except for specialized usage by the end of 2019 fared?
JPMA: The Japanese paint industry has achieved very significant progress in the abolition of lead used in the paint industry. JPMA regular members are expected to abolish production and sales of lead paints by the end of FY 2019 (March 2019) except for limited special usage.
CW: What are some of the largest challenges facing the Japanese paint and coating industry? How is JPMA helping the domestic producers to overcome them?
JPMA: Stagnating paint demand, workforce shortage and promotion of environmentally friendly paint products are three of the largest challenges facing the Japanese paint industry. In order to increase the paint demand, JPMA, in association with paint producers, is promoting interior coatings by organizing campaigns targeting DIY at homes and supporting re-painting projects at kindergartens or schools. We are putting a special focus on increasing and promoting value-added paints. In order to overcome the labor shortage, we are working on the improvement of productivity. JPMA has established a working group on this issue and is working on it. To increase the usage of environmentally friendly products in the country we have established JIS (Japan Industrial Standards) on waterborne heavy-duty anti-corrosive paints. Currently, we are promoting this standard to national/local bodies.
CW: The Japanese economy, which had been temporarily weak due to several factors, including impacts of natural disasters such as heavy rains, registered slow growth rate in fiscal 2019. How has it impacted the domestic paint industry?
JPMA: To some extent, the Japanese paint industry has been impacted by natural disasters in recent years. For example, in August 2018, typhoon No. 21 caused serious damage around the western part of Japan. Many paint manufacturing facilities were also damaged, suspending production temporarily. Japanese GDP was dragged to minus level, but it was a short-time impact and recovered in time.Also in 2019, numerous natural disasters are observed, but its economic impact is limited. However, we consider the main factor of a slower GDP growth rate is largely due to the effect of the sluggish global economy.
CW: Paints and coating consumption in Japan is markedly different from other countries in Asia, such as China and India, due to a very strong automotive and shipbuilding industry. Do you see this consumption pattern to continue?
JPMA: The largest demand sector of the Japanese paint industry is decorative (construction), followed by the automotive sector. This proportion is expected to continue in the future. Decorative paint producers are increasing their sales by raising the volume of value-added products in their offerings. Automotive demand has been increasing for the last three years.
CW: Per capita consumption of paints and coatings in Japan is higher as compared to most of the Asian countries, but it is low as compared to some of the European countries. Being, one of the most industrialized countries, don’t you think it is on the lower side?
JPMA: According to our source, per capita consumption in Japan is about 10 kg. This figure is low as compared to per capita consumption figures in some of the European countries. The low per capita consumption in Japan than European countries is mainly because the consumption of decorative paint in Japan is only about one-third of Europe. Paint is hardly applied in our country for the interior of residential homes/buildings. However, as I mentioned... we are targeting to promote the usage of more and more paints in this sub-segment.
CW: Green or environmentally friendly paints have almost become a norm in developed countries. What is your take on this sub-segment in the Japanese paint industry? Approximately what proportion of total sales do these products constitute in the domestic market?
JPMA: Expanding the usage of environmentally friendly paint is an important issue for us. There’s no exact data on current proportion, but waterborne and non-solvent type makes about 53 percent of the total market, on the volume basis.