CEO’s report

Tom Bowtell Chief Executive Officer, BCF

At the turn of the year, there were whispers that the second half of 2022 would see some easing in the raw material crisis, and things would start to return to normal. That was until 24th February when Russia invaded Ukraine.

Clearly the most important concern is around the citizens of Ukraine, and their wellbeing. Our thoughts are with them all and we hope there is a resolution and end to fighting soon.

We are also following how continued hostilities will impact both the global economy, and closer to home the coatings sector. Oil and gas prices have shot up again since the war started, and they were already at close to record highs. This significant increase in oil and energy prices will undoubtedly have a knock on effect on both prices and raw material supply pressures.

These additional burdens, faced both by consumers and industry, are something we have to accept as a consequence of standing united in the global community. I commend the BCF member companies who have stopped exporting to Russia, at a cost to their profitability but not their reputations.

Events in Ukraine put into perspective the issues we get animated about in our sector, but our work has and will continue to support the future prosperity of the UK coatings sector.

I’m so impressed with how members have responded to all the challenges thrown at them in the last 2 years, and despite many difficulties of Brexit and Covid they have continued to produce and deliver high quality paints, coatings, printing inks and wallcoverings for UK and export customers.

The raw material crisis, which our industry has battled with throughout 2021 is not abating, and despite lower demand in some coatings segments, supply availability is still restricted, and prices are at an all-time high. We have issued two updates to our raw material information notes in 2022, showing how quickly things are changing, and not for the better sadly.

At BCF we are making some headway on some big topics behind the scenes – thanks to our efforts, Defra have delayed UK REACH by two years and given us time to work with them on an alternative, more pragmatic model, and the Home Office has changed how the licencing arrangements will work on GBL and BDO following BCF’s interventions on behalf of printing ink members. We’ve launched the new Green Claims Code for Decorative Paints, and are working hard on our decorative paint recycling programme (PaintCare) implementation plans and starting to piece together the Net Zero Roadmap.

The key objectives as agreed with the Board of Directors for BCF this year are: 1. Deliver on Roadmap and budget financial KPIs 2. Continue to influence and shape future UK chemical regulations post Brexit, to support the sector and UK manufacturing 3. Get sign off from Government and industry to launch

PaintCare 4. Progress work with Defra to establish a licencing/ registration system for UK bodyshops, to control illegal solvent based sales 5. Update and modernise BCF’s website, more clearly articulating the industry’s important role, our sustainability credentials and our lobbying positions and automating more back office processes 6. Continue our careers outreach via the Coatings

Careers Hub and Ambassador Programme. 7. Lobby to achieve a good outcome for printing inks regarding modulated fees as part of the new Packaging Extended Producer Responsibility legislation (at request of BCF printing ink council)

Looking ahead to future events, our 2022 Awards are still open for entries until early June, with the ceremony in October. We’ve also got the BCF sponsored bike ride to look forward to on 1st July, so it’s time to get training! BCF membership is stronger than ever, and for the first in my tenure as CEO, we have achieved a 100% retention rate for our 150 Full member companies in 2021/22. I’m really pleased with how the team has continued to provide first class support to our members and I want to thank them for their commitment and dedication. With the number of issues we are facing seemingly only increasing, we cannot afford to get complacent. As always, please do get in touch with any comments, thoughts or feedback on how we can improve our service to you, and thanks again for your continued support.