Paul Roughan, Trade Merchants Sales Director Dulux Trade, is BMBI’s Expert for Paint.
Both consumer confidence and housing transactions were weakening towards the end of 2018, presumably a reflection of the ongoing uncertainty over Brexit. These two indicators have a significant influence on the paint market – private housing RMI is by far its biggest sector and there is also a direct correlation between housing transactions and paint sales.
We have a number of work streams across all areas of our business to identify, and work through, any challenges and short-term logistical complexities to ensure business continuity after March 2019. These actions include increasing lead times with European suppliers, increasing safety stocks in the UK and exploring options to increase sourcing in the UK.
One of the key challenges for the paint market is the potential impact on regulations, such as REACH. It is expected that many of the existing chemical management regulations will be brought into UK law, and where we hold registrations as a manufacturer or importer under REACH, we will ensure these are replicated and valid across both the EU and the UK.
Our procurement teams are also working closely with suppliers to ensure future compliance for raw materials purchased. In order to allow for cross-border flows of both raw materials and products we also expect our suppliers to meet the requirements of both EU REACH and the UK REACH.
We are following Brexit developments closely and whatever the final trading agreement between Britain and Europe, our number one priority is to safeguard the supply and quality of our products and services to our customers.
Read the full report here.