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Hardcover, 576pp
Harvard Business Press, October 2008 (Updated and Expanded)
ISBN-13: 978-1422126967
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« New Emissions Standards For Coatings Industry | Main | New Coatings Expand Product Usage, Strength and Durability »


May 17, 2002

Automotive Coatings Industry Takes the High Road

By Katrina C. Arabe

New technology and the desire to reduce costs are causing major changes to the ways new vehicles are painted. Learn about the latest advances and underlying advantages for the customer.

The automotive coatings industry is changing dramatically as a result of new technology and the desire to reduce overhead costs. Many people believe the coating process only involves the outside coat of paint visible on the car. There are actually several coats that need to be applied to ensure the vehicle looks good coming off the assembly line and for years to come. The automotive coating process is one of the most complex areas of automobile manufacturing. Coatings not only contribute to the cosmetic appearance of the vehicle, but they are used to protect automobiles from scratches, chips and harmful chemicals in the environment.

The uncertain economy is the biggest factor in determining the techniques being used by manufacturers. It's not possible to develop one single coating technique for the entire industry because of the many types of vehicles being produced for different purposes. The technology used must accommodate the needs of the customer, which are constantly changing. Automakers exert pressure on their coatings suppliers to provide a high quality product at the lowest possible cost. Automobile purchasers ultimately reap the benefits of this pressure because their vehicles are more resistant to corrosion and retain their value better than in the past.

PPG Industries, a Pittsburgh company in the automotive coating industry, has instituted an internal program called Sigma logic that is designed to help the company adjust to changing customer needs and market conditions. The program involves training managers and other employees to implement the steps necessary to make these changes. In the long run, this allows the company to eliminate unnecessary steps in the production process resulting in lower overhead. Reduced costs at the production level will result in a lower purchase price for the consumer.

One coating technique that has gained widespread acceptance within the industry over the last ten years is powder coating. This particular method has several advantages over the techniques used previously within the industry. The environmental impact of powder coating is minimal as compared with liquid coating systems. Liquid coating methods produce high amounts of air emissions, limiting the production of manufacturers that utilize this technology. In addition, overspray resulting from the powder coating method can be recovered and reused, resulting in lower costs to the manufacturer.

Another example of new technology allowing automakers to increase productivity while eliminating waste is block painting. Manufacturers are now able to accurately predict the number of cars they need in each color. Block painting of twenty-five or more vehicles at once allows the automaker to increase vehicle output and reduce waste in the process. In addition, block painting also helps streamline production in other areas. For example, car interior components such as dashboards and trim depend on the exterior color of the vehicle. If an automaker uses block painting to coat twenty-five blue cars, for example, they can order and prepare twenty-five blue car interiors to match. This results in more available space on the production floor which translates into greater working capital for the company.

Automotive coating methods have come a long way in the last few years. Advanced technology and the desire to reduce costs have resulted in more efficient and practical coating techniques. Recent economic conditions have made coatings suppliers and auto manufacturers push each other to deliver the best product to the consumer at the lowest possible price. The end result is beneficial to everyone concerned.

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