DaimlerChrylser announces major layoffs. Venerable Oldsmobile runs out of gas. General Motors plans to temporarily shutter 14 plants in North America. These and other recent news stories have painted a not-so-shiny future for the automotive industry.
According to the Freedonia Group, motor vehicle production on a global basis will rise from 54.9 million in 1998 to some 59.3 million by 2003. Of course, some automobile companies and markets will fare better than others. However, when automakers feel the pinch, it trickles down the supplier chain to coatings manufacturers. Demand for motor vehicle coatings is forecast to rise just 1.8% per year to 2.0 million metric tons by 2003, with OEM coatings posting 1.5% growth per year to 1.2 million metric tons.
Despite facing a lean market in the coming years, coatings manufacturers are still making strides in R&D and investing in new technologies. "We all know that this a cyclical business and you have to plan for it," commented Joe Gdowski, global technical director, automotive OEM coatings, BASF Corp.
Planning for the future means a company must be active. Coa
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