Making the Global Leap

September 25, 2015

In the 1990s, the international movement to reduce the level of VOCs and APEs in paints and coatings helped move formulations towards a globally accepted standard.
This evolution was also a catalyst for the expansion of the colorants industry to follow suit.
By the early 2000s, colorant suppliers worldwide were producing colorants with similar chemistries, whether they were selling to coatings suppliers in Europe, Asia or the Americas.
Some built production facilities and labs near their global coatings customers, creating the opportunity for even greater color consistency around the world.
Today, the availability of colorants from a global supplier greatly simplifies international expansion for coatings manufacturers.
Maybe your company is comfortably positioned as a regional supplier with a robust customer base. You have a strong niche and could remain a profitable mid-sized business, but then a growth opportunity presents itself. One of your key customers is expanding globally and requires you to do the same to remain its supplier of choice.
Coatings manufacturers that require a global infrastructure to expand into international markets can leverage the expertise of a global colorants partner in areas such as:

  • Regulatory compliance. Coatings manufacturers need to determine in advance whether the chemicals used in their production processes comply with local, regional and national regulations in a given country. If your colorant supplier is global, it can provide information and guidance on regulatory guidelines to ensure compliance with new or unfamiliar regulations. Your partner can also provide local and/or regional information about the markets the company serves. Plus, your supplier’s team will be knowledgeable about compliance standards and rules.
  • Lead times. Global colorant suppliers with extensive global footprints typically have made-for-stock programs, meaning colorant inventories are available in a network of regional warehouses. This allows these suppliers to provide product to their customers with shorter lead times and lets your business access colorants on a just-in-time basis, helping you meet or exceed your customers’ expectations.
  • Pricing. If you turn down the chance to go global, you may be turning down new sources of revenue. The decision ultimately comes down to the size of the opportunity and whether it is cost effective for your business to accept. The good news is that global colorant suppliers typically provide larger product inventories, and they can source raw materials on a wider scale than smaller suppliers – making your business more competitive.

Are you ready to build a thriving global business? Expanding your business internationally doesn’t require a leap of faith if you have the right colorant supplier supporting your efforts and helping you grow. Even if you choose not to go global, you can continue to enjoy the positive benefits of a global colorants industry on a regional and national scale.
In either case, choosing a global colorants supplier will allow you to take advantage of broad industry resources, experience and knowledge of industry trends – all of which can help you position your coatings business for the future.

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