Michael H. McGarry, PPG Chairman and CEO12.05.22
Michael H. McGarry joined PPG in 1981 and assumed the role of CEO in 2015 and then chairman and CEO in 2016. He will become executive chairman on January 1, 2023.
CW: How did the market for paints and coatings fare in the latter half of 2022?
Michael H. McGarry: Despite macro-economic challenges, market forces are working in favor of our packaging coatings, aerospace and automotive original equipment manufacturer (OEM) coatings businesses, as PPG aims to deliver technical partnerships with our customers. In the third quarter of 2022, PPG experienced record net sales, good organic growth and increased pricing, with particular areas of our business fueling these trends, including our and global automotive refinish businesses and PPG COMEX in Mexico.
CW: Where are you seeing signs for optimism?
Michael H. McGarry: We are seeing improvement in raw materials availability and logistics, but we will continue to face continued challenges from COVID-19 restrictions in China. We expect our business portfolio to prove more resilient in the coming quarters as several of our larger businesses, including automotive OEM and aerospace coatings, are anticipated to deliver growth due to large supply deficits and low inventories in these end-use markets.
CW: What represents the biggest growth opportunities for your company?
Michael H. McGarry: We see the greatest opportunities in two areas. The first is in key secular growth areas, such as PPG’s innovative products for electric vehicle battery packs which provide fire protection and electrical insulation. Of equal importance, we must continue to expand within existing and new customers in the market segments we currently serve. PPG always strives to anticipate the needs of customers and develop new technologies and solutions to meet their needs. By advancing sustainable technology and improving manufacturing processes, our goal is to drive growth as a leader in our industry while supporting and enabling our customer’s success.
CW: What are some of your greatest reflections on your time as PPG chairman and CEO?
Michael H. McGarry: Throughout my time as CEO, PPG has made significant progress on expanding the company’s portfolio and reaching key growth markets.
Our greatest strength when I assumed the CEO role in 2015 remains the same today: our people. Our teams of more than 50,000 PPG people across the world have worked diligently to support our customers, deliver excellent business performance and create additional shareholder value, all while facing some of the greatest challenges in PPG’s nearly 140-year history, such as the COVID-19 pandemic and record inflation.
As one example, the global pandemic significantly shifted the way we do business. Our culture – the PPG Way – was instrumental to how we responded to the pandemic. It centers on taking care of our people while supporting our customers, and we continue to operate this way today by living our company’s purpose to “protect and beautify the world.”
CW: You have been with PPG in various roles for more than 40 years. What are the greatest transformations you’ve witnessed over your career?
Michael H. McGarry: When I joined PPG in 1981 as an engineer, our focus was on glass and chemicals. Over the decades our business has transformed into a global paint, coatings and specialty materials leader now operating in more than 75 countries around the world. As we continue to deliver on our growth strategy, we’re steadfast in strengthening our operations and energizing our diverse workforce. This is one of the many areas where PPG’s incoming CEO, Tim Knavish, will excel.
A large emphasis moving forward will be to accelerate our efforts to invest in energizing our employees, modernizing manufacturing practices and optimizing digital offerings.
CW: How did the market for paints and coatings fare in the latter half of 2022?
Michael H. McGarry: Despite macro-economic challenges, market forces are working in favor of our packaging coatings, aerospace and automotive original equipment manufacturer (OEM) coatings businesses, as PPG aims to deliver technical partnerships with our customers. In the third quarter of 2022, PPG experienced record net sales, good organic growth and increased pricing, with particular areas of our business fueling these trends, including our and global automotive refinish businesses and PPG COMEX in Mexico.
CW: Where are you seeing signs for optimism?
Michael H. McGarry: We are seeing improvement in raw materials availability and logistics, but we will continue to face continued challenges from COVID-19 restrictions in China. We expect our business portfolio to prove more resilient in the coming quarters as several of our larger businesses, including automotive OEM and aerospace coatings, are anticipated to deliver growth due to large supply deficits and low inventories in these end-use markets.
CW: What represents the biggest growth opportunities for your company?
Michael H. McGarry: We see the greatest opportunities in two areas. The first is in key secular growth areas, such as PPG’s innovative products for electric vehicle battery packs which provide fire protection and electrical insulation. Of equal importance, we must continue to expand within existing and new customers in the market segments we currently serve. PPG always strives to anticipate the needs of customers and develop new technologies and solutions to meet their needs. By advancing sustainable technology and improving manufacturing processes, our goal is to drive growth as a leader in our industry while supporting and enabling our customer’s success.
CW: What are some of your greatest reflections on your time as PPG chairman and CEO?
Michael H. McGarry: Throughout my time as CEO, PPG has made significant progress on expanding the company’s portfolio and reaching key growth markets.
Our greatest strength when I assumed the CEO role in 2015 remains the same today: our people. Our teams of more than 50,000 PPG people across the world have worked diligently to support our customers, deliver excellent business performance and create additional shareholder value, all while facing some of the greatest challenges in PPG’s nearly 140-year history, such as the COVID-19 pandemic and record inflation.
As one example, the global pandemic significantly shifted the way we do business. Our culture – the PPG Way – was instrumental to how we responded to the pandemic. It centers on taking care of our people while supporting our customers, and we continue to operate this way today by living our company’s purpose to “protect and beautify the world.”
CW: You have been with PPG in various roles for more than 40 years. What are the greatest transformations you’ve witnessed over your career?
Michael H. McGarry: When I joined PPG in 1981 as an engineer, our focus was on glass and chemicals. Over the decades our business has transformed into a global paint, coatings and specialty materials leader now operating in more than 75 countries around the world. As we continue to deliver on our growth strategy, we’re steadfast in strengthening our operations and energizing our diverse workforce. This is one of the many areas where PPG’s incoming CEO, Tim Knavish, will excel.
A large emphasis moving forward will be to accelerate our efforts to invest in energizing our employees, modernizing manufacturing practices and optimizing digital offerings.
