Coatings industry offers Government its all-seeing eye on manufacturing decline

Citation

(2003), "Coatings industry offers Government its all-seeing eye on manufacturing decline", Anti-Corrosion Methods and Materials, Vol. 50 No. 2. https://doi.org/10.1108/acmm.2003.12850baf.003

Coatings industry offers Government its all-seeing eye on manufacturing decline

Coatings industry offers Government its all-seeing eye on manufacturing decline

Keywords: Coatings, Industry, Manufacturing

Evidence of the seriousness of the decline in UK manufacturing was published by the British Coatings Federation (BCF) which represents the UK paints, coatings and printing ink manufacturers, a £2.5 billion industry which supplies a broad range of different manufacturing sectors and as such is a bellwether for much of the rest of British industry.

The BCF's President, Mr Peter Rieck has written to Patricia Hewitt at the Department of Trade and Industry asking for official recognition of the critical state of UK manufacturing and calling for appropriate and urgent action to be taken.

The Federation reports that the situation is most severe in the industrial coatings sector where sales have been falling at an annual rate of 10 per cent with the latest (June) figures showing 17th consecutive monthly decrease.

Worst hit are general industrial coatings (e.g. for constructional steelwork, machinery, bridges, buildings etc.), wood finishes for the furniture industry and printing inks where colour inks for newspaper advertising have fallen for the first time ever.

Profits continue to fall with 40 per cent of firms in the industrial coatings sector now trading unprofitably, with 80 per cent of all participants in a recent survey reporting lower gross margins than a year ago. Employee numbers fell 5 per cent in the last year, the largest decrease since 1996, while new investment is down 20 per cent.

Production of coatings for automotive manufacture is now a much reduced activity in the UK with two of the three major coating firms already having closed production, instead importing products from plants in continental Europe to supply the UK market. Many vehicle components are also imported ready-coated.

In addition to declining sales, the BCF cites increase labour costs, energy and other environmental taxes and the disproportionate burden of EU legislation as enacted and enforced in the UK, as serious threats to UK competitiveness.

The action plan for Government outlined by the BCF includes:

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  reduction of the legislative load,

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  extending eligibility to Part B processes for entry into Climate Change Levy Agreements,

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  12-months delay in implementing costly forthcoming EU labelling laws, and

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  introduction of smaller industry direct support to encourage investment in R&D and environmental schemes.

For further information, contact: Mrs Moira McMillan, Chief Executive, British Coatings Federation Ltd. Tel: 01372 360660; Fax: 01372 376069; E-mail: moira.mcmillan@bcf.co.uk; Web site: www.coatings.org.uk