The current economic downturn in the U.S. has dampened investor confidence, decreasing demand for end user products from East Asia, such as paints and coatings. However, opportunities exist for manufacturers that focus on domestic markets. For example, as South Korea prepares to host the 2002 World Cup tournament, refurbishing hotels, gymnasiums, and other non-residential buildings will be a priority. Architectural coating manufacturers should experience a significant increase in sales over the short term.

This Frost & Sullivan study examines the major product segments in the paint and coating markets, including protective, marine, automotive, architectural, and manufacturing coatings. It evaluates drivers and restraints, and presents expert forecasts for each segment in three East Asian markets: South Korea, Taiwan, and Hong Kong. With such a comprehensive view of the field, your company will be poised to realize its full potential.

Rise of Manufacturing in China Poses Challenges, Creates Opportunities

"China has emerged as a preferred location for manufacturing due to its inexpensive land, labor, and raw materials," says the author of this study. As China enters the World Trade Organization, the manufacturing costs there are expected to drop even further. The lure of low overhead and a large domestic market will interest investors from around the globe.

China could attract companies away from Hong Kong and Taiwan, restricting domestic sales for paints and coatings. But at the same time, coating manufacturers prepared to capitalize on growing demand in China should see impressive gains. This study identifies emerging challenges and recommends strategies to help you anticipate and overcome hurdles that might lay ahead.

Regulations Require Environmentally Friendly Coatings

"Environmental regulations on volatile organic compounds will limit production of traditional solvent-based products and push manufacturers toward water- and powder-based coatings," says the author. Fortunately, many East Asian manufacturers are well prepared for this change. For example, Taiwan is the second largest regional producer of powder coatings after China.

Increased environmental awareness among end users will further drive demand for solvent-free products. This study tracks legislative changes and technology trends and assesses their impact on the marketplace, giving your firm an essential guide to the future of the field.