An uneven but expanding market

By Emma Peterson. 

Industry veteran John Kenney shares his perspective on the current opportunities and challenges in the construction coatings market. 

In a new CoatingsTalk™, Heidi J. Ellsworth spoke with John Kenney about the state of the construction coatings industry and what is driving its current changes. John is the CEO of Cotney Consulting Group and has an extensive background in the industry, both being a third-generation roofer and having had over 45 years of experience in the field personally.  

When asked about what he’s seeing in the industry, specifically the coatings market, John used the word uneven. He explained, “I don't think you can simply describe construction as good or bad right now. Conditions are varying considerably by geographical and market segment... Overall, I’d say the market isn’t moving collectively in one direction.”  

But even without a clear direction, there are some trends that John has observed beyond the diversity of experiences across regions. One is the expansion of coatings beyond the roof. As he put it, “One of the things that I see as far as coating opportunities, they definitely extend beyond the roof; you have waterproofing, walls, decks and other type of protective applications... All this means that, even though backlogs have shrunk in some areas, there’s still profitable work in this market.” 

What has created this uneven but expanding market? John pointed to deferred capital spending and rising building owner understanding as some of the growth drivers. “Deferred capital spending can create many, many restoration opportunities. The need to maintain the assets are not going to disappear simply because the owner delays a larger capital project,” he explained. “And what we’re seeing is a lot of clients who are realizing coatings are the solution to deferring large amounts of spending while still maintaining their properties.” 

As for some of the factors slowing the market, John’s main points were about fuel prices that have been impacted by geopolitics, “ 

As we all know, geopolitics are turbulent and where we’re feeling that is with oil. Specifically, there’s less refining capabilities because of all the wars, so the reason why the output is less is because there's no way of making more. And that pressure is keeping things like oil prices, fuel shortages, diesel especially, and chemical costs high with no sign of coming down. And those high prices and shortages are felt in everything from gas prices and mobilization expenses to delivered material costs and more. 

Overall, John’s outlook is hesitant positivity. In his own words, “Projects aren't going to disappear. And I think that puts us in even a better position for what we're talking about here, restoration, coating, service and maintenance work even with the challenges.” 

Listen to the whole episode or Watch the recording to learn more!