Marine and Yacht Coatings Market

For the most part, companies in the marine and yacht coatings market were pleased with 2004, and they say prospects are good for the coming year based on newbuilds and refurbishment schedules. Marine coatings manufacturers continue to roll out new products, set up international offices and win new contracts in key regions.

But it hasn't been all smooth sailing. The rising cost of raw materials has been a drag on profits, much like barnacles on a hull. Unfortunately for coatings manufacturers, there's no sloughing off these escalating costs, and there's little relief in sight.

In its annual report for 2004, Hempel reported that a 20% increase in raw material prices, and higher costs of product regulation took "some of the shine off a record year" in its marine business.

"Raw materials have increased so rapidly. It's been a problem," said Anders Braekke, product group manager topcoats-worldwide with Jotun, a leader in the marine coatings marketplace.

Rising costs are also impacting smaller players in the marine coatings sector. Altex Coatings Limited of New Zealand is forecasting 10% growth for 2005-06,