Automotive paint production will fall 10%

The production of automotive paints should fall about 10 percent this year compared with 43 billion gallons produced in 2014, following the poor performance of the auto industry, design experts heard by the DCI.
According to the Executive Chairman of the Brazilian Association of Manufacturers of paints (Abrafati), Dilson Ferreira, virtually all automakers ' demand for automotive paints is serviced by companies that produce in Brazil. In this way, the relationship between production of new cars and ink is straightforward.
"New vehicle production fell 22 percent in the first quarter of 2015 compared to last year and the expectation of Anfavea is that at the end of the year, vehicle production fell 10%. If this is confirmed, the production of automotive coatings must have 10% reduction or even a little more, "he said.
Maxiquim Consulting Executive partner, Solange Stumpf, reinforces that the prospect for the segment of automotive paints is not good, but believes that in the next few years the Brazilian industry of vehicles will resume a growth path. This resume should pack also demand in the field of automotive paints. "The automotive industry is cyclical because people buy car and spend some time without buying, but after 2 or 3 years return to the market," he notes.
Refinish
The automotive refinish segment should serve as encouragement, but it won't be enough to save the industry. According to the President of Abrafati, traditionally, in times of low content of fleet renewal, people tend to take better care of the used vehicles, which increases the demand for automotive paints for minor repairs.
Dilson assesses, however, that this increase in searches for repainting will not cover the lower level of sales for the automakers of vehicles.
"The production of paints for refinishing must grow just above the GDP [gross domestic Product] in 2015," he estimated. Economists are betting in retraction of 1% in GDP this year.
James remembers that the paint industry as a whole is going through a moment of increased costs due to, among other factors, the increase of energy prices, inflation and the high cost of imported inputs because of the appreciation of the dollar against the real.
"The recessive scenario that the Country must face throughout this year makes it difficult the transfer integral of this increased cost," said Karim, who believes in a recovery of the paint industry and the economy in the coming years.
Consolidation
In the opinion of the consultant Maxiquim, companies can keep strengthened, amid the backdrop of economic downturn, tend to benefit in the future. She discards, inclusive, that occurs a process of mergers and acquisitions within the industry of automotive paints in the coming years.
"Moments of crisis also opens doors to new investment opportunities," bet Solange.