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Yongji Industry: Future Development Trends of Powder Coatings Market

Date: 2020-10-27

As 2020 approaches, many coating companies are busy collecting payments while also starting to make development plans for 2020. After communicating with the heads of several paint companies, Xiaoqu found that some paint companies are not optimistic about their future development, and even have a fear in their hearts.

 

Will the future be a period of restructuring of existing funds?

When the industry as a whole is in trouble, it is also the time for leading enterprises to unify the industry. It is not difficult to find through research on the development trends of traditional industries such as building materials and pharmaceuticals that when the industry as a whole falls into overcapacity and weak demand, some leading enterprises will inevitably quickly unify the world through mergers and acquisitions.

“ For the paint industry, especially the powder coating industry, it is currently in the early stage of overcapacity and weak demand. With the gradual rise of leading paint companies, there will be large-scale mergers and acquisitions in the industry; What answer did Xiaoqu and a person who has been studying the paint industry for many years get.

 

For the paint industry, due to the high amount of deposits and difficulties in capital turnover, the industry has limited incremental funds and will eventually enter a period of restructuring of existing funds.

 

Will the echelon of powder coating enterprises emerge?

As a traditional industry, the demand for powder coatings mainly comes from domestic sales, that is, relying on domestic sales& ldquo; At present, 70% of the development of the domestic economy relies on domestic resources, 30% relies on foreign resources, and the chemical industry should be even more so; A financial expert said to Xiaoqu.

 

At this time, under the premise of domestic real estate regulation and shrinking national consumption, competition in the powder coating market driven by domestic sales will continue to intensify. With the continuous increase of competitive pressure, the industry will shift from quantitative changes to qualitative changes. Ultimately, it will lead to delamination in powder coating companies.

 

If we apply the development trajectory of the building materials industry, the development of the powder coating market will be that leading enterprises will adopt both soft and hard measures to recover medium-sized enterprises, while small and micro enterprises will be eliminated. Among the means of using both soft and hard tactics, the soft one is to gradually annex the enterprise through positive negotiations, while the hard one is to suppress the enterprise through market competition.

 

Ultimately, as powder coating companies gradually gain recognition, they will also usher in a tripartite situation. The editor believes that it may be realized in the next few years, let's wait and see.