Many coatings manufacturers, collision shops and PBE jobbers are scrambling for ways to rejuvenate their paint sales. Some have looked to alternative means, targeting niche markets with niche products, and in turn, have tapped into growth segments of an otherwise flat U.S. automotive refinish industry. One such beacon of light has been custom finishes.
To some degree, the OEMs have been forcing the issue by using more unique finishes on select vehicles, says Werner Diersch, president of Painters Supply & Equipment Co., a 20-plus-store PBE jobber based in Taylor, MI. However, he says the main reason the market for custom painting has "exploded" can be attributed to the consumer's desire to stand out from the crowd'especially on the crowded streets of Anytown USA.
A healthy portion of the driving public also wants to be unique and express their individuality. "The color they choose for their car is an extension of their personality," says Janine Little, a marketing representative for DuPont Hot Hues Custom Finishes. "That's why both custom color and special effect finishes are becoming more popular."
According to Brent Wallace, a product manager for BASF Refinish Coatings, the public's growing interest in custom colors is part of a much broader trend, which is clearly reflected in all the TV shows about vehicle customization and restoration, such as Overhaulin and Dream Car Garage. The increasingly popular SEMA show www.semashow.com is another indication of growth in the customization market.
"Restoration using custom finishes has always been pretty huge, and it's getting bigger every year," says Brad June, vice president of operations and distribution for Painters Supply & Equipment. "I think a whole new generation is catching on," Diersch adds. "From an application standpoint, some of the colors and effects you see today simply couldn't be done years ago. We started to see some growth in this segment a few years ago, but I figured it was just a fad. It's certainly had a lot more impact than that."
Tapping This Growth Segment
The U.S. automotive refinish market as a whole has been experiencing a decline in volume for many years. According to Darlene Eilenberger, BASF's director of brand marketing, this decline can be attributed to three primary factors:
- Increased use of non-metal body parts.
- Fewer accidents.
- A greater percentage of totaled vehicles.
It's pretty simple: a reduction in the number of collision repairs leads to a reduction in paint usage. On the other hand, custom refinishing is not reliant on accident rates or the policies of insurance carriers. Thus, it's presenting jobbers'and many of their customers'with an opportunity to capture additional sales from the growing segment of an overall flat market.
When searching for potential customers, June says jobbers can't set their sights solely on custom shops. "The jobber should tell every single shop it calls on'be it a prototype shop, independent body shop or dealership body shop'that this is a growing market, and that the new coatings of today make custom refinishing easier and more effective than ever before."
It's not necessarily the shop that will want to take on this line of work, June points out. "There are some shops that specialize in custom work, but it's a select few. What you often find is that employees at a given shop want to do this kind of work on the side. This has generated some additional business for one of our stores where sales had really been lagging."
BASF's Wallace says jobbers need to identify shops that have the talent to perform these services, and suggest that custom finishing can be another profit channel. "The jobber then needs to offer the products that will be required in order to perform these tasks, from building custom dashes or speaker boxes to creating custom paint jobs," he adds.
For Painters Supply & Equipment, the increased demand for custom finishes has also lead to increased demand for associated products. Don Witt, vice president of purchasing and facilities, says that sales of SATA and Anest Iwata air brushes, for instance, have been climbing right along with sales of custom coatings. Additionally, one of the more popular, emerging products has been custom painting templates, such as skull or flame sets.
But that's just gravy. By focusing on growing segments of a flat market, jobbers can boost sales, expand their customer base, and create revenue streams from product categories that were slow-movers or even non-existent. That's what many PBE jobbers have been able to do that with custom finishes. And as Werner Diersch points out, it's not just a fad.
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The Custom Craze
The market for custom refinishes has "exploded" in the past few years, according to Werner Diersch, president of Painters Supply & Equipment Co., a Michigan-based PBE jobber that continues to have success with the well-known House of Kolor line from Valspar. Painters Supply has also found success with PPG's newest line of custom finishes, the Vibrance Collection, which was introduced a year ago.
Other major paint companies have also beefed up efforts in the custom finish arena. For instance, BASF is expanding its Carizzma line of custom colors, branching into custom effect pigments this year. DuPont is also broadening its Hot Hues lineup. And like BASF, DuPont is focusing on effect finishes.
In addition to these paint companies, other PBE suppliers are catching the custom colors craze as well. SEM Products is making a big push with its Color Horizons line, as is Matrix System Automotive Finishes with its lineup of custom colors. Vogel Automotive Coatings has also recognized this growth segment, and plans to introduce some custom coatings in the near future. As for right now, Vogel Automotive's Tom Disney says the company is focusing on its new line of Axis Performance Coatings, which is being introduced this spring.
