By Liz White, editor
Istanbul, Turkey -- The polyurea coatings sector needs to take action to protect the business from further commodisation, according to Mark Teakle, business development manager with polyurea system supplier VIP Germany.
Polyurea use has developed rapidly to the stage where more and more independent systems houses are supplying the materials, with support from raw materials manufacturers. In this process, competition rose, prices fell, and as a result, the volumes sold rose, with polyurea becoming more cost viable for a range of uses, said Teakle,
And the raw materials suppliers also stepped in to sell polyurea systems, at lower prices: they "are competing against their customers here," Teakle said, speaking to an audience of about 120 delegates at the PDA-Europe meeting held in Istanbul, Turkey, 12-14 Nov.
If prices are driven too low, the ability to offer technical support is compromised: "We must stop disappointing customers by offering poor quality products without tech support," the VIP executive added.
While Teakle sees increased use of polyurea as a good outcome, he said it is "not necessarily a good outcome for all," because it results from lower prices, and these mean lower margins. As a result. suppliers have less ability to offer the high levels of technical support and training that users need, Teakle emphasised.
"In my opinion, one of the biggest threats is poorly specified and poorly applied jobs," Teakle said, pointing out also that polyurea should ideally be regarded as a technology, not a product.
"I also believe we have failed to differentiate products," Teakle commented, with pure polyurea and hybrid systems marketed as the same -- a situation which he feels is much like branding all cars the same.
"We brag about polyurea, and we have in fact commoditised the material without realising it," Teakle said.
Teakle feels the industry and the PDA need to focus on "developing a sustainable, viable future. We must make decisions in our every day business that have a positive impact" on the entire polyurea value chain, he added.
• See more on Teakle's presentation in our report on the PDA-Europe meeting in the Dec 2012/Jan 2103 issue of Urethanes Technology International.
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