With falling oil prices across the globe don’t expect the cost of paint to go down any time soon
Like us, you too might think that lower crude oil prices mean lower paint prices! Unfortunately that’s not the case. Paint manufacturers buy the oil based products, used in the production of paint, well in advance. This means the oil in the paint you buy today was most likely purchased by the paint maker over 12 months ago.
Energy companies follow a similar practice. It usually makes much better business sense to speculate on commodities and buy in materials many months before they will be used. I say it “usually” makes better business sense, but nobody could have foreseen such a dramatic drop in the price of oil in such a short space of time.
Oil exploration could be cut to stabilize crude oil prices
There are many reasons for the fall in oil prices but I’m not going to go into them in detail. My focus will be on paint, the product we use most here at D&D Coatings. Paint is without doubt the most important component in our day to day activities. The higher the cost of paint unfortunately means higher our costs are to our clients. We, unlike the paint manufacturers, energy companies and airlines etc don’t have the luxury to be able to buy our supplies in advance. If we could, we would and in turn pass on any savings to our clients. But it’s not an ideal world.
So, for now, we will have to live with stable paint costs. However if the price of crude oil remains as low as it is then I think in the not too distant future we will all be able to enjoy lower paint costs. You can read an interesting article here about how paint makers will soon start to reap the benefits of such low oil prices.
Other Paint Industry News
Anti Rust Paint Industry
There is a new report out on the global anti rust paint industry, head over to whatech.com for more. The report provides a basic overview of the industry and where its heading. Manufacturers are always looking at ways to stay ahead of the curve and this can only be good news for end users.
Impressive 88% Rise in profits for Akzo Nobel
Akzo Nobel India has reported an impressive rise in profits for their 3rd quarter. Although shares in the Asian based manufacturer remain stable, managing director Jayakumar Krishnaswamy says the figures are in line with the companies growth plans. A combination of cost savings and the introduction of some new products to market has resulted in a net rise in sales in 2014.
Three Awards for Nippon Paint
Nippon Paint China has recently received three awards for Best Annual Philanthropic Group, Best Annual Philanthropic People for President of Nippon Paint China Eric Chung, and Best Philanthropic Project. The companies President, Eric Chung, has enjoyed much success in recent months taking the business to new heights.
Strong Economic Outlook is Good News for Coatings Industry
With a Strong Economic Outlook Coatings for Africa begins advancing the production and use of coatings. The company manufactures products for a variety of end users from construction companies to the industrial industry. At its recent Expo it educated its business partners and clients alike on the importance of innovation and education.
4-Year Paint Warranty at No Additional Cost
US based Sabreliner Aviation LLC has introduced a 4 Year Warranty for its Paint Services. The Perryville based company says its always looking for new ways to keep painting costs down for its customers. As you can appreciate, painting an aircraft is a complex operation the requires specialist skills and high quality paint products.
