Steve McDaniel and Steve McDaniel01.29.10
Paints and coatings have long been recognized to provide both protection and aesthetic appeal. Over time, however, they have garnered increasingly less value as customer perception of these materials has changed. Instead of being viewed as high value, specialized products, many paints and coatings now fall into the commodity category-common characteristics offered by many supply sources.
Commoditization offers only two sources of differentiation, service and through pricing, rather than performance. The industry needs to take action to stem this negative trend by finding alternative methods for reintroducing value and product differentiation and ultimately raising customer expectations.
Functionalized coatings containing bioengineered additives designed with targeted performance capabilities are one such proactive approach. Use of such naturally-derived, novel additives will create value and opportunity in both existing and new markets without presenting any new concerns such as those raised with nanomaterials, thus expanding the role of paints and coatings beyond traditional applications.
Commoditization offers only two sources of differentiation, service and through pricing, rather than performance. The industry needs to take action to stem this negative trend by finding alternative methods for reintroducing value and product differentiation and ultimately raising customer expectations.
Functionalized coatings containing bioengineered additives designed with targeted performance capabilities are one such proactive approach. Use of such naturally-derived, novel additives will create value and opportunity in both existing and new markets without presenting any new concerns such as those raised with nanomaterials, thus expanding the role of paints and coatings beyond traditional applications.
Commodity Crisis
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