www.paintshow.com.br
than can be used in the marketplace. One of the companies
which certifies compliance with those regulations is Concep-
ta Certificadora, a company created to help customers meet
the new regulatory requirements that were being introdu-
ced for the packaging industry by the National Road Trans-
portation Agency (ANTT, in Portuguese) and the National
Metrology, Standardization and Industrial Quality Institute
(known as Inmetro). Concepta Certificadora provides packa-
ging certification services as a partner certified by Inmetro
under the rules of the Brazilian Compliance Evaluation
System (SBAC, in Portuguese).
Inorganic Pigments - Market adjustment
The economic crisis is generally impacting the paint and
coatings industry, which directly reflects in all its related
materials. The strong economic slowdown that began in
the last quarter of 2008 had clear effects on business in the
first quarter of 2009, causing most companies to start the
year with high inventory levels and costs above affordable
levels for a market in the middle of a crisis. In addition, the
instability of the foreign exchange rate has contributed to
making costs incompatible with the new reality.
Sales down, resulting in decreased production due to the
slow pace of the economy combined with an unpredictable
consumer market behavior over the months that followed,
led the industry as a whole to focus its efforts on the process
of reducing inventories, thereby postponing the purchase of
raw materials to the fullest extent possible. All that affected
sales in various industry segments, bringing sales for the
first quarter of 2009 to a lower level than those for the same
period of 2008. On the other hand, there are more optimis-
tic expectations for the second half of this year, which is also
the best time of year as far as paint consumption goes.
According to the professionals we have interviewed, who
work for major suppliers of inorganic pigments in Brazil,
the industry have perceived a slight pick-up in sales over the
past two months (May and June), and this is expected to be
a sign that the companies in this market have adapted for
the conditions that have prevailed since late 2008 by finding
new ways to meet customer requirements, lowering costs in
general and seeking to utilize their capacity in order to pre-
vent idleness from further impacting their margins, which
are quite deteriorated as it is.
Some say that the crisis also has an upside, in that the ma-
rket has looked for new alternatives, and companies have
demonstrated to consumers all of their potential and qua-
lity. In addition, these times even create opportunities for
implementing long-lasting projects and partnerships with
customers and suppliers. By pursuing their goal to keep and
even increase sales volumes, some companies have actually
increased their market share and created great opportuni-
ties for the industry.
P&P