Automotive Refinish Market Rebounds

The automotive refinish market has begun to rebound from the three-year slump caused by the pandemic. During the past year, life has returned to a near pre-pandemic state. As a result, more people are driving, meaning more accidents and the increased need for auto refinish services.

PPG CEO Comments

In a January 2023 conference call announcing their fourth quarter earnings, Tim Knavish, then COO and currently president and CEO of PPG Industries, stated: “Our fourth quarter sales of $4.2 billion were near the record levels achieved in 2021 despite significant unfavorable foreign currency translation.

“Sales were aided by our strong U.S. automotive refinish volume growth as supply chain disruptions started to moderate and our order books remained robust. In 2022, our automotive refinish coatings business delivered over 2,000 net new body shop wins as customers continue to value the product technology and industry-leading services and capabilities that this business delivers every day, including what we believe is the best-in-class body shop full repair productivity.”

Interview with BASF

In this month’s feature on the auto refinish market, I interviewed Jim Reddy, marketing manager Americas, Refinish and Industrial Coatings at BASF.

Reddy noted the correlation between the increased number of miles driven and a higher possibility of incidents that will lead to the need to repair a vehicle.

“The number of miles driven in the U.S. in 2023 is essentially back to pre-pandemic 2019 levels,” he observed. “Most areas are seeing a healthy auto refinish business as well. The new car market continues to lag for many reasons. Any time people keep their vehicles longer, there’s more likelihood that they will repair small dents and scratches and keep going.”

Newest Offerings for Auto Refinish

In this article I also take a look at some of the latest products and technologies being brought to market by the top players in the industry. Axalta, BASF and PPG have all developed refinish products and service with an increased emphasis on a superior product, while increasing productivity and keeping shop costs down.