While the pigment industry has been seeing some improvement in the economy in recent months, there remain many serious challenges to be deal with, running the gamut from raw materials and regulations to increasing demand for R&D. Of course, the economy is the most important concern.
“The projected slow growth of the overall economy is the biggest challenge we foresee,” said Darren Bianchi, president of Brilliant Group, Inc. “We’re focused on new product development such that our own growth exceeds that of the marketplace.”
Raw material price and supply remain major concerns.
“First, the price of raw materials increased at an unprecedented rapid pace in 2008,” said Mehran Yazdani, vice president, marketing, Performance Pigments, Sun Chemical. “It was then followed by a rapid decline in demand starting in the fourth quarter of 2008. While some of the pressures have eased since then, true year-to-year improvement will not be achieved until all of these inventory effects completely work their way through the supply chain. It will take some time to recoup the magnitude of the increases that pigment suppliers absorbed in 2008 and we are now starting to see the price of raw materials go up again.”
“We purchase our raw materials in a manner that is most economical so that we may keep our prices low and give our customers a price reduction when our efforts are fruitful,” said said James Bee, president of Aarbor International. “The biggest challenge in this market is pricing, quality and service. Prompt service and adequate inventory with quality control is critical in this industry.”
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