Metal Center News

JAN 2018

Metal Center services the metal center and toll processor industry.

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Prepaint Outlook By Jonathan Samples, Associate Editor Riding Construction I t was a good, not great, year for prepainted metals. Residential construction, a main driver of the prepaint market, finished 2017 with high single-digit growth, while smaller subsectors such as appliances made similar strides. Overall, the prepaint market only saw moderate gains last year, but coil coat- ers of all types are holding on to high expectations in 2018. "The prepainted market has per- formed as expected," Laura Lanza, president of the National Coil Coaters Association, says of the market in 2017. "As long as the trend is toward single- family homes and commercial buildings continue to rise, then the outlook for prepainted aluminum and steel will con- tinue to rise." According to the NCCA, the prepaint market grew approximately 3 percent in 2017. That growth was primarily due to the rising popularity of metal roofing and ongoing recovery in the building and construction sector, which alone ac- counts for roughly three-quarters of all prepainted steel and half of all prepainted aluminum. However, increased competi- tion, market saturation and a struggling transportation industry have kept the pre- paint market from achieving larger gains. Despite these challenges, coil coaters and industry analysts see innovation, market expansion, new applications and a posi- tive economic outlook in the construction sector as promising signs for the future. "I think the prepaint market in aggre- gate is growing," says Michael Noble, chief commercial officer at Material Sci- ences Corp.β€”an Elk Grove Village, Ill.- based service center and coil coater that operates five paint lines throughout the U.S. "We see sequential prepaint growth the next few years." His company is in the process of de- veloping new paint and laminating tech- nologies, which Noble sees as vital to MSC's continued success in the prepaint and coil coating markets. "The growth that we are enjoying is a function of our technology and our service. Innovation and service is what separates us from ev- erybody else." One prepaint end market that has benefited tremendously from both new technologies and market growth is metal roofing. Total market share of metal roofing in the residential retrofit market grew to 14 percent in 2016, according to Dodge Data & Analytics. That's im- portant because almost all metal roofing material is prepainted. "After all of our research and analy- sis and looking at the current numbers that just came out from Dodge, we be- lieve metal roofing in the residential arena can reach 20 percent market share by 2020," says Renee Ramey, executive director of the Metal Roofing Alliance. Part of the reason metal roofing has become increasingly popular in residen- tial construction and remodeling is due to MRA's education and marketing efforts. Prepainted metals saw modest growth in 2017, but positive outlooks in a few key end markets have coil coaters cautiously optimistic about the year ahead. 22 ❘ Metal Center News β€” January 2018 www.metalcenternews.com A metal coil is run through a coil coating line. (Photo Courtes National Coil Coaters Association)

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