Could any of us have predicted in 2019 that,in 2023,everyone would be preoccupied with lower but still unacceptably high inflation,unprecedented rate hikes by the Federal Reserve,the nearly year-and-a-half Russian aggression against the sovereign State of Ukraine that has led to global energy fears,and the refocusing of the American vision of China from”trading partner”to”potential enemy?”Whether or not we saw them coming,each of these situations has affected the paint and coatings business globally and the negative side effects are not going away tomorrow.Although the industry recovered in 2021 from a 2020 dip in volume,the real news is the dramatic increase in value(-25% over the two-year period 2021-2023 estimated(2023e))that has resulted from the high cost of crude,decreasing(but not completely halted)global supply chain issues,remnant shortages,improved(but not back to pre-2020 levels)transportation/logistics issues,and labor shortages.All have led to galloping inflation that the chairman of the Federal Reserve feels will likely require at least two more rate hikes this year.
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