Kerry Pianoforte, Editor 10.17.22
CW: How did the market for auto refinish coatings perform in 2022?
Johnson: The total number of miles driven is often used as a measure of the health of the automotive refinish business. With a large number of miles driven, there’s a higher possibility of incidents that will lead to a vehicle repair.
The number of miles driven took a huge hit in 2020 when the COVID-19 pandemic began. After some depression in that number for early 2021 and a rebound by mid-2021. Most areas are seeing a healthy auto refinish business as well.
The pandemic also slowed the new car market. Any time people keep their vehicles longer, there’s more likelihood that they will repair small incidents and keep going.
CW: What challenges does the market face moving forward in the years to come?
Johnson: As the complexity of vehicles increases, so does the cost to repair. That puts pressure on auto body shops to remain current with repair procedures and perform with a high level of efficiency to stay profitable.
OEMs are also introducing more and more Advanced Driver Assistance Systems (ADAS), which will make collisions less likely, and lower the likelihood of repairs. The new car market is declining, though, so while the ADAS features decrease the likelihood of collisions, there will be fewer new cars on the road that use those features.
CW: What are the key issues facing your auto refinish customers and how is your company addressing those needs?
Johnson: Unemployment is at an all-time low. Auto body shops, like most other industries, are having trouble hiring and retaining talented workers.
BASF has a long history of developing virtual web-based training tools, business efficiency tools, and management tools. Our suite of tools called Refinity helps body shop owners and managers get new painters up to speed, and get more repairs done faster. This digital solution is cloud-based, which decreases dependency on localized devices and onsite services.
More and more shops are adopting the Refinity suite of tools, and as more join, they will see new features and user interface improvements from BASF.
CW: What are the newest products that your company's refinish group has launched and what do they deliver to the marketplace?
Johnson: Glasurit 100 Line continues to lead the way in sustainability. Launched last year, Glasurit 100 Line is a total refinish solution to deliver highly efficient processes for easier, faster and more reliable repairs. Body shop owners can use less material, cut processing time, and cut VOC emissions, while requiring less energy.
BASF is a leader in sustainability, and has specific goals to cut CO2 emissions. This helps our partners reduce their emissions as well.
CW: Are there any new developments worth noting (expansion, consolidation, new facility, acquisition)?
Johnson: BASF Coatings (Guangdong) Co., Ltd. (BCG) expanded the production capacity of automotive refinish coatings at its coatings site in Jiangmen, Guangdong Province in South China. With the completion of the expansion in July 2022, BASF’s annual production capacity of automotive refinish coatings will be increased to 30,000 metric tons. This is in line with the company’s pledge to maintain customer proximity, as well as to strengthen BASF’s position as a leading and innovative coatings supplier to the automotive industry in China and the rest of Asia.
Johnson: The total number of miles driven is often used as a measure of the health of the automotive refinish business. With a large number of miles driven, there’s a higher possibility of incidents that will lead to a vehicle repair.
The number of miles driven took a huge hit in 2020 when the COVID-19 pandemic began. After some depression in that number for early 2021 and a rebound by mid-2021. Most areas are seeing a healthy auto refinish business as well.
The pandemic also slowed the new car market. Any time people keep their vehicles longer, there’s more likelihood that they will repair small incidents and keep going.
CW: What challenges does the market face moving forward in the years to come?
Johnson: As the complexity of vehicles increases, so does the cost to repair. That puts pressure on auto body shops to remain current with repair procedures and perform with a high level of efficiency to stay profitable.
OEMs are also introducing more and more Advanced Driver Assistance Systems (ADAS), which will make collisions less likely, and lower the likelihood of repairs. The new car market is declining, though, so while the ADAS features decrease the likelihood of collisions, there will be fewer new cars on the road that use those features.
CW: What are the key issues facing your auto refinish customers and how is your company addressing those needs?
Johnson: Unemployment is at an all-time low. Auto body shops, like most other industries, are having trouble hiring and retaining talented workers.
BASF has a long history of developing virtual web-based training tools, business efficiency tools, and management tools. Our suite of tools called Refinity helps body shop owners and managers get new painters up to speed, and get more repairs done faster. This digital solution is cloud-based, which decreases dependency on localized devices and onsite services.
More and more shops are adopting the Refinity suite of tools, and as more join, they will see new features and user interface improvements from BASF.
CW: What are the newest products that your company's refinish group has launched and what do they deliver to the marketplace?
Johnson: Glasurit 100 Line continues to lead the way in sustainability. Launched last year, Glasurit 100 Line is a total refinish solution to deliver highly efficient processes for easier, faster and more reliable repairs. Body shop owners can use less material, cut processing time, and cut VOC emissions, while requiring less energy.
BASF is a leader in sustainability, and has specific goals to cut CO2 emissions. This helps our partners reduce their emissions as well.
CW: Are there any new developments worth noting (expansion, consolidation, new facility, acquisition)?
Johnson: BASF Coatings (Guangdong) Co., Ltd. (BCG) expanded the production capacity of automotive refinish coatings at its coatings site in Jiangmen, Guangdong Province in South China. With the completion of the expansion in July 2022, BASF’s annual production capacity of automotive refinish coatings will be increased to 30,000 metric tons. This is in line with the company’s pledge to maintain customer proximity, as well as to strengthen BASF’s position as a leading and innovative coatings supplier to the automotive industry in China and the rest of Asia.
