ACE Coatings Showing Signs of Recovery

Agricultural, Construction and Earthmoving (ACE) equipment is big business, one that generates a significant demand for coatings. Prior to the recession, the ACE equipment coatings market, was valued at €2.1 billion generating demand of over 500,000 tonnes.

The impact of the global recession was felt in all markets. The construction industry was worst affected and spending in real terms fell by almost 20% in 2009. This led to dramatic declines in both equipment orders and output. Dealers and leasing companies already held surplus stock, which placed additional pressures on the equipment manufacturers. Markets declined by as much as 60% in some markets, including Russia, leading to overall production output of machinery falling by around 40% in 2009. This resulted in considerable shrinkage in associated coatings demand.

Governments set aside considerable sums of money for infrastructure and construction projects as part of their fiscal stimulus packages, intended to inject funds into key industries during the downturn. These were more effective in countries like China and contributed to stronger performance in the Asia Pacific region, which accounts for over 55% of the ACE equipment coatings market.

The agricultural equipment coatings segment performed comparatively better, but still witnessed declines in equipment output of around 15%. As a result, the value of the global market for ACE equipment coatings (including industrial trucks) in 2009 was estimated to be around €1.6 billion.

As the order books of equipment manufacturers started to fill in 2010, coatings consumption increased by around 3%, and is expected to continue growth in 2011. However, a return to pre-recession levels is not expected until 2015.

These are the findings of the Paint Research Association (PRA) that has just released its view of ACE equipment coatings as part of its Irfab® Global Industrial Coatings Market 2010 – 2020 study. The full study, which will be completed later this year, focuses exclusively on industrial coatings and draws together a wealth of market data and industry comment collected through extensive interviews with all of the leading industry participants. The Irfab® team applies their own coatings industry experience and expertise to validate the data collected to ensure accuracy and consistency and to determine future coatings demand profiles

The ACE chapter, which is available separately, provides a full review of coatings for agriculture, construction and earthmoving equipment and the impact that the recessions has had on consumption profiles. The machinery covered also includes materials handling equipment.  The chapter considers technology trends and market developments from a regional perspective, and includes information on the key country markets in both volume and value terms. Demand drivers and market dynamics of both the agriculture and construction industries are presented. The outlook presents annual volume forecasts for the next five years, with trend indicators for 2020.

The Irfab® Global Industrial Coatings Markets 2010-2020 study is PRA’s most ambitious and comprehensive industry review to date. It is an invaluable tool to improve understanding of the end-user coatings market and to support strategic decision making.

Visit www.pra-world.com/irfab for more information and to download sample pages from the study.

Don't Monitor Us - DMU

The National Union of Students (NUS) is concerned about potential plans for “wi-fi surveillance” at De Montfort University (DMU). News that the executive board had discussed the possibility of a system for automatically monitoring attendance through electronic chips in the student ID cards sparked comparisons to an Orwellian society in Times Higher Education.
 

There is discussion and (for some) concern about how the Universities will differentiate themselves in a new commercially focused environment. Higher tuition fees and changes to funding are expected to create more discerning and consumerist students, who will (according to the NUS President) flinch at the idea of “round-the-clock monitoring” that may “infringe on their privacy or dignity”.

 

The article made me smile – not least because “swipe cards” are already used in many FE Colleges for tracking attendance and improving security. It is quite hard to judge student behaviour without bringing my older more experienced values into the equation. However, when I am honest with myself - I remember as a ‘bright young thing’ getting ready to continue my education beyond ‘A’ Levels, my decision criteria about what University to study at was as much about how many bars were conveniently located to campus as anything else. And once at University, personal dignity was very low on my agenda (as was attendance to any lecture that started before midday if I am honest).

Ignoring the cost efficiency arguments of an automated administrative function, the introduction of such a system is surely a positive step as it will help to prepare students for professional life in the world of commerce. Radio Frequency Identification (RFID) and swipe cards are a routine part of most modern businesses, to track both their products and peoples. 

Consumerism itself robs many of us of our privacy; by allowing marketing professionals to track our high-street movements “round-the-clock” through purchases linked to store cards. We seem quite comfortable to let Big Brother keep watch when there is something in it for us – such as future discounts or a free hat.

Perhaps the solution is not the student ID cards. The University that introduces Nectar Points for attendance to lectures will be able to both monitor attendance and create a USP in a competitive market.