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How changing market conditions can affect your business
Over the past few years, the global chemical industry, including the production of industrial paint and roof coatings, has faced numerous challenges. Changing market conditions can affect your business, and this is usually visible when there are supply chain delays.
Market challenges range from chemical price rises and supply chain pressures to shortages and delays. These have all had a significant impact on the industry and its competitiveness. Understanding the challenges faced by the industry can help companies prepare and adapt to overcome them, as well as remaining competitive in the marketplace.
The effect of market challenges
One of the biggest challenges faced by the chemical industry has been the rising cost of raw materials. Over the past decade, the cost of key chemicals used in the production of industrial paint and roof coatings has increased significantly. For example, the cost of titanium dioxide, a common white pigment used in paint, has more than doubled in the past ten years due to increased demand, reduced supply, and environmental regulations.
The rise in chemical prices has a direct impact on the cost of production for companies and can make it difficult for them to remain competitive in the marketplace. In addition to chemical price rises, UK manufacturers that rely on the supply of chemicals from overseas have also faced significant supply chain pressures.
COVID and the chemical industry
The COVID-19 pandemic disrupted global trade and created bottlenecks in the supply chain. This led to shortages of key chemicals used in the production of industrial paint and roof coatings. For several months, these shortages caused delays in production and the supply chain was significantly affected. For some, this increased costs, making it more difficult for companies to meet customer demands and remain competitive in the marketplace.
UK chemical industry
For many years, the UK chemical industry has faced challenges by rising competition from overseas producers. With the rise of China as a major chemical producer, some chemical companies face increased competition from low-cost overseas suppliers. This competition is driving down prices, making it more difficult for UK-based companies to compete on price alone.
Economic pressures
Economic changes in the marketplace are also having a significant impact on the UK chemical industry. According to the Chemistry Industry Association, the dramatic rise in inflation is “eating into margins and consumer prices”. Energy costs, raw material costs and shortages, and labour costs have all been cited as the four biggest pressures on UK manufacturers at the current time.
Environmental changes
Manufactures are also facing increased pressure from environmental regulations. Governments around the world are becoming more focused on reducing the environmental impact of industrial activities, and the chemical industry is no exception. Companies are being required to adopt more sustainable practices and reduce their use of hazardous chemicals. This can result in increased costs and less competition in the marketplace.
In conclusion, the UK roof coating industry needs to focus on innovation and efficiencies to overcome challenging market conditions. This is essential if they want to remain competitive in the marketplace. Companies can only succeed by focusing on the development of new coating technologies and by maintaining strong relationships with customers and partners.
At Giromax, we carry out continuous development and rigorous testing of all our roof coatings, cut edge corrosion treatment and gutter repair products. We manufacturer our roof coatings in the UK, making us much more resilient to global trends. We also have a trusted list of approved contractors, which we recommend to surveyors using our products.
We have always differentiated ourselves from our competitors. Giromax not only started the UK coatings market, but we have evolved to meet the needs of a changing marketplace. Last year, despite increased market competition, we offered a 20% price decrease, and yet we still lead the roof coatings market. This year, we have expanded our Technical Services Managers team, who are on hand to advise contractors and surveyors.
If you need advice or technical guidance on our product range, please speak to the Giromax team or call 01455 558969.
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How changing market conditions can affect your business
Managing Director
Market challenges range from chemical price rises and supply chain pressures to shortages and delays. These have all had a significant impact on the industry and its competitiveness. Understanding the challenges faced by the industry can help companies prepare and adapt to overcome them, as well as remaining competitive in the marketplace.
