Powder Coating Demand Is Greater Than Supply
The demand for powder coating is greater than the supply. There is a huge demand for powder coated finishes from small manufacturers and consumers, but there are not enough powder coating shops to meet the need.
Currently, many large manufacturers in the U.S. are already powder coating or outsourcing to established finishing facilities. Over time, more mid to large-size manufacturers will replace their wet paint lines with powder coating lines or add powder coating capabilities to the systems they have. In order to remain competitive, smaller companies need to offer a powder coated finish for their products. This situation has caused an increase in the demand for job shops that perform powder coating on a per-piece basis.
The sluggish economy has also increased the demand for powder coating. Hotels, schools and amusement parks that might normally replace handrails, cafeteria tables, and exterior architectural features are choosing to save money and have them refinished instead. Powder coating is ideal for these applications, and simple walk-in sized “batch” spray booths and powder coating ovens are well suited for coating railing and related components.
Retail consumers are also driving this increase in demand. The popularity of color-keyed wheels, custom cycles, and aftermarket 4WD and ATV parts has caused an increase in the demand for local coating services. Because competition for powder coating clients isn’t as tough as it is for services such as welding or auto body repair, powder coating can generate substantial profits as either a primary line of business or as an additional service at an existing shop.