Metal Center News

JAN 2018

Metal Center services the metal center and toll processor industry.

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Page 25 of 48

to complete a control acoustics in a giv- en area," says Noble, who explains that MSC's Quiet Steel and Quiet Aluminum products are laminated on the same lines used to paint metal. And within transportation, the recre- ational vehicle market is an area where MSC and other coil coaters are seeing growth. "The hot market that we saw in 2017 and gaining speed in 2018 is the recreational vehicle market," says Noble. Lanza, who is also sales director of coated products at Cleveland-based alu- minum maker Aleris, agrees. "The RV market has come back," she says, noting that a lot of these vehicles are made us- ing prepainted aluminum. "The re-emer- gence of people having money to spend on those types of vehicles and the fact that you can afford gas has helped for sure." Despite these few bright spots, the overall outlook for the transportation sector is still underwhelming. Plummer predicts the market will be down between 3 percent and 5 percent this year. "We're expecting further declines, but moder- ate declines, for the U.S. and Canada in 2018," he says. "We think this will likely be a relatively moderate recession." Regardless of the market they're selling into, there are several additional factors that could affect the prepaint market in the upcoming year. Competi- tion, whether it be from other materials or other coil coaters, is high on the list of concerns. Joe Wilson, vice president of sales in building products at Liberty Steel Prod- ucts, Jackson, Ohio, is looking at the cost of paint and how that could affect the metal roofing market in the long term. "As the cost of paint goes up, homeown- ers and the people who are putting up buildings start looking at the cost of, say, shingles vs. the cost of a metal roof," he explains. "If that spread starts to grow too much, then you'll see some of the market going back towards shingled roofs, compared to metal roofs." Competition among coil coaters is another fact of life in the prepaint mar- ket, as growing saturation means more and more companies are vying for the same business. "Without a doubt, the biggest change factor in our industry in the past few years has been the steel mills' vertical integration into our space, as well as our customers' space," says Noble. "In the old days, all of that steel that they manufactured would have gone to a coil coating line. But now they paint a lot of that material, so a lot of that con- sumption has been internalized." Wilson feels there are some advantag- es and disadvantages to the emergence (continued on page 40) Industry leader in coil coating and the developer of Intercoat ® ChemGuard, the VOC and HAP free rust preventative, Chemcoaters announces significant reductions in the cost of its coil cleaning services, so call us today and schedule yours! Example: A .047-.065 gauge, 32"-64" width coil can be cleaned for $1.25 cwt. Includes standard VCI wrap Single or Double paper wrap and other services available onsite. We could say more, but you get the idea. Call Mike Tieri today for all the details…708-715-7759 Visit our website… Chemcoaters Coil Cleaning…costs a lot less than you'd think! 877-411-2905 Metal Center News — January 2018 ❘ 25 Prepaint Outlook

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