Barriers against the crisis

by Vanesa Restrepo

Formulators and suppliers of raw materials for the paints and coatings industry in Mexico found the best solution to minimize the effects of the crisis: work together. This was stated by Arius Zúñiga, president of the National Association of Manufacturers of Paints and Inks of Mexico, Anafapyt, during the previous edition of the Latina American Coating Show.

The fair, which took place between July 15 and 16, was attended by 100 companies, including formulators and suppliers of raw materials, machinery and equipment. For the organizing team and for the members of Anafapyt the massive attendance of visitors and the response of the exhibitors is a sign that together they can form a barrier against the crisis.

"The balance is very positive (...)  at the beginning of the year, when the crisis began to be felt, we had doubts about how people would behave before an event of this type, especially considering that it was in the second part of the year. Fortunately, our fears were more negative than reality," Zúñiga said.

Through the aisles of the fair, the entrepreneurs supported the appreciation of the president of the Association and celebrated the response of the media and applicator companies and consumers of paints and coatings.

Richard Pino, representative of the multinational Croda, said that the business prospects during the fair were important, that the attendance was good and that this is one of the best showcases to position your brand in the Mexican market. "The event is very good, a lot of people visiting the stands; It seems to me that many people, both laboratory and senior managers visited the fair looking for new things, especially for water-based, solvent reduction, ecological things. I think the market is taking that path," he said.

For his part, Armando Calderón, from the Beta Petrochemical Group, said that the event gave them the opportunity to launch a new product with positive responses and establish new and different contacts.

He explained that, for example, formulators of original equipment coatings such as electtrodomestics have felt the crisis more strongly, as the sales of manufacturers in the United States fell almost to zero.

Another of the big affected is that of automotive paint, since the assemblers that have a presence in the country suspended operations for a few months. "Mexico in the past made a big bet on the automotive industry, with the assemblers. It was a successful bet, but right now General Motors had its plants shut down for almost two months, Chrysler is just reactivating it. The only ones who did not have such strong and prolonged stoppages were the Ford and Volks Wagen.

"But there are other sectors that have benefited, to the extent that their sales have not fallen so much. Automotive repainting, and the construction industry have performed better, although in all cases the market has fallen," he said.

Commitment to people
Despite the difficult economic outlook of the industry in Mexico, the president of Anafapyt said that there have not yet been layoffs or plant closures. "Mexican entrepreneurs have a commitment. Although we have had difficult situations, with the health contingency that forced the closure of plants for two weeks and the economic crisis, we are trying to defend the labor plant, fortunately there are no companies that have closed," he said.

However, he assured that the calculations indicate that the worst months of the year will be August, September and October: "For the last quarter, we will know what the real impact of the crisis was."

The hope for Mexican formulators, according to those expressed by several of the speakers, continues to be public investment. In this regard, the businessmen welcomed the adoption of an emergency plan by the National Government. According to Anafapyt, the plan consists of "an incentive to public works", but its execution has not been as expected. "Resources have not been released at the speed we want. If there is the will of the government, but not in the way we would like," Zúñiga said.

The conclusions of the meeting were several. In the first place, the need to completely redefine the objectives of the Association was raised, because in the words of Arius Zúñiga "these were defined in different economic conditions, they were other times".

Taking into account that the Association is celebrating 65 years of activities, the leaders proposed to redefine its north, and for that they will hold a new meeting in September, when the number of corporate representatives is expected to be greater.

Additionally, there was talk of the need to continue investing in research and development, as more and more customers venture into different markets, which requires having products that adapt to the needs. At this point, for example, the opportunity that exists with aeronautical coatings was highlighted, since in that segment there are important growth projections in the region.

Projections
The attendance and commercial developments presented during the Latin American Coating Show left exhibitors and visitors alike satisfied.

"We are delighted with the very positive response. The number of visitors in one day was an all-time high and despite the economic environment, exhibitors have reported that they found good business here," said Ian Faux of DMG Woldmedia, the firm in charge of the organization.

It is expected that in the next edition of the event, the average number of exhibitors will exceed the record of recent years.