Argentina. The change of new government could generate a stagnation at the beginning of the new year in the activities of the paints and coatings sector, according to some entrepreneurs in the sector who took stock of the industry during 2015.
At the end of this year, the sector could close with a growth of 6% compared to 2014. "The paint market in general will close with a good result this year. We estimate that growth will be around 6% compared to the previous year, mainly driven by the lines of the architectural paints segment," said Claudio Rodríguez, Director of Administration and Finance of the company Sinteplast.
In a dialogue with the NA agency, Rodríguez also said that "another fact that is interesting to observe is that the purchase, mostly, is maintained in products of the standard segment, with a slight growth of premium lines."
Faced with the arrival of the new government led by President Mauricio Macri, the businessman of the painting sector said that "we estimate that with the change of Government, the first months of the year will tend to stagnate; we foresee that we will be with a fluctuating economy and an expectant society."
Claudio Rodríguez expects the industry to recover by the second half of 2016, and thus return to register positive numbers in terms of volume growth at the end of that year.
Issues such as fiscal deficit and the scheme of withholdings in agribusiness are challenges that the Government must overcome for the benefit of the entire Argentine economic sector.
Regarding Sinteplast, he stressed that the company will obtain a 13% growth in volume, being the second year online that exceed the evolution of the market and achieve brands in terms of volume.
