FEDERATION STRATEGY
The President’s report
There are lots of clichés bounded around at the moment, about how we’ve
never known times like these, but it’s true that for our sector there are
significant headwinds.
Be it Brexit, raw material price inflation, changing business
models, price competition, the loss of key non-substitutable raw
materials, the potential classification of titanium dioxide (TiO 2 )
or challenges to find competent and skilled staff, it does feel
there are more pressures than I can ever remember. On top
of all that, we know the overall economy slowed in 2017, with
GDP growth at only 1.5%, and forecasts for 2018 are worse.
Construction growth, a key indicator in my sector, is forecast to
slow in the coming years, so we should be tightening our belts
for a bumpy period ahead.
In times like these industry needs its associations to be delivering,
to help stave off the worst, and create an environment where
our member companies can prosper and grow. I’m confident
that in the BCF, we have a strong and capable Federation that
is well placed to support us, to give the right level of leadership,
to punch above our weight and help ensure we have a stable
environment to trade in.
2017 saw a mixed picture in terms of market performance.
In my own sector, decorative paints, it was a tough year, with
sales down by 2.4%. Retail paint dropped by 5.7%, which is a
major concern, and must in some part be linked to the 10%
drop in consumer confidence during the year, and a drop in
real household disposable income. On the other hand, trade
paints grew, if only by 0.8%, and still below the overall economy.
Printing inks continue to experience tough economic conditions,
with sales volume down 5.8%.
On the other hand, we saw industrial coatings have a much
stronger year with 5% growth, which was a great result, especially
as 2016 had seen a 2% drop in volume. Wallcoverings also grew,
at 3%, so it’s not all doom and gloom.
We ended 2017 with
217 members - a record
27 new members joined
last year, and we are seriously running out of potential new
members, with 95% of the industry now in BCF. The growth in
members over the last five years, combined with good growth
in commercial income, means we now have just under £1m in
reserves, putting the BCF in a strong financial position to manage
its pension deficit, which still stands at just under £800,000.
At the end of 2017, the BCF board took the major decision to
acquire a home of our own. In May 2018, BCF will be moving
to a fantastic new office in Coventry, which will be large enough
to host all BCF meetings, as well as provide space for the BCF
team to expand and grow in the future. The new office will have
30% lower running costs than the current office in Leatherhead,
and gives the Federation a significant tangible asset. However,
sadly the move will also mean losing several key members of
the team, and I’d like to personally thank Ulla Read, Karen Traies,
Jackie Lennard and Tina Abbas for all their support and energy in
helping the BCF be such a fantastic association, and I wish them
all well in the future.
As I hand over my Presidency to David Beckford of Pronto
Paints, I look back proudly on where our Federat ion now sits.
However, I know Tom and the team will not be complacent, as
we still have a huge amount of work to do behind the scenes,
be it on the regulatory and trade outcome of Brexit, the future
of biocides, solving the leftover paint challenge or ensuring
continued use of our key raw material, TiO 2 .
You will read in our CEO’s report some of the highlights and
lowlights of 2017, and how BCF had made a difference in what
was a major award winning year for our Federation: BSI Industry
Leadership Award for Standards; Trade Association Marketing
Campaign of the Year (Safe Antifouling) and Highly Commended
for Magazine of the Year (Covered). This was capped by receiving
the ultimate accolade Trade Association of the Year 2017,
something I am hugely proud of to have happened under my
Presidency.
Vincent O’Sullivan, BCF President and Business Unit Director,
PPG Architectural Coatings UK and Ireland
BCF ANNUAL HANDBOOK 2018/19
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