Change as usual is a continuous process. We have been seeing
consolidation in paint and coating segment for many years. Generally
consolidation leads to savings that pay for some of the monies needed for the buy
out. This is normal. Savings come from better management of supply chain,
information services, R&D and better manufacturing operations (1).
Sherwin Williams buying Valspar and PPG Industries wooing Akzo Nobel Coatings (2)
are the latest.
Significant progress has been made in the development of coatings
by incorporating design of experiments and other development tools in
optimizing use of various raw materials. Raw material technologies and their
performance have been continuously improved. All these have led to better performance
and environmentally friendly coatings.
Review of some of the consolidations suggests that one thing
has not changed much and that is the manufacturing process of making coatings. Batch
processes are the still norm and I call the process making one paint can at a
time.
There is an explanation for paint and coatings manufacturing
has not whole-heartedly ventured to continuous manufacturing. Coatings are made
using batch processes with adjustments being made for raw materials and color to
match the desired performance needs. This has worked from the beginning of
coatings manufacture more than a century ago.
There are excellent reasons for not adopting continuous or
any other manufacturing. Explanation comes from reviewing the customer’s need for
different performance and colors. If we leave color aside, i.e. everything is
same color “X” for the time being, one can go from low to high performance
coatings by adjusting different raw material additions as the coating is being
assembled in a pipeline or similar equipment. Actual task would be more
challenging than as written here. Process control technologies do assist. I am
sure we have sufficient creative and imaginative engineers who can deliver quality
product with minimum waste during transitioning from one performance level to
the next.
Moment we bring different colors to fulfill customer’s
demand, industry has to stay with batch technology as development and
commercialization of viable in-line color matching technology has been a
challenge. Companies like Renner Herrmann (Brazil), E.I DuPont (now Axalta) and
BASF initiated and progressed with the development of inline color measurement
and adjustment technologies. Significant monies were spent and progress was
made in the development of the technology but lack of funding and other factors
led to slowdown and demise of the development at external company to commercialize
the technology. It is my conjecture that since continuous manufacturing was and
is alien to the coatings industry, funding and desire for such technology have
been and will stay a challenge.
Continuous manufacturing, if incorporated in coatings, including
automotive and industrial coatings and inks will have significant financial
benefit from manufacturing technology innovation, improved inventory turns,
supply chain improvements, product quality and environmental sustainability. Seasonal
demands could be easily addressed.
It is my conjecture that based on the volume of coatings produced
savings for the coating companies could be much higher than the general
projections (1,2). As of writing of this blog it is my understanding
that some companies still might be using in-line color match and adjustment
technology, but who actually is using the technology is unknown. Opportunities
for better manufacturing technology do exist.
- Akzo Nobel-PPG: Why This Trans-Atlantic Megadeal Could Actually Happen, The Wall Street Journal, March 9, 2017, Accessed April 25, 2017
Girish Malhotra, PE
President
EPCOT International
