PAPM IN 2020: THRIVING UNDER A RAINBOW OF UNITY
PAINTS and coatings play a vital part in protecting and preserving the objects and surfaces to which they are applied. As a coating agent, they are applied to almost everything we own and use, prolonging usefulness and providing protection from scratches, rust, and corrosion. Painting both the interiors and exteriors of structures greatly enhances the aesthetics and affects the moods of occupants. As such, there is always a huge demand for paint and its manufacturers have traditionally been a significant economic driver.
In the Philippines, the local paint industry stands on the significant and collective contributions of a united paint-manufacturing sector backed by the Philippine Association of Paint Manufacturers (PAPM), a united confederation of paint industry stakeholders: paint manufacturers, coating producers, chemical professionals, raw material makers, as well as the machinery and auxiliary product suppliers. Under the leadership and foresight of the PAPM, local paint manufacturers have added substantial economic contributions, generated local
jobs and encourage innovations in the manufacturing sector, greatly improving the quality of Philippine-made products.
To better realize the overall state of the local paint industry, The Philippine STAR sits down with outgoing PAPM president Ely Kenneth Ongsue, incoming president Derrick Tan and outgoing board secretary Diosdado Cheng as they discuss PAPM’s accomplishments, opportunities and challenges, new leadership, as well as preparations for the six-decade milestone next year.
THRIVING AT 59
When the PAPM was created in 1961 by a group of paint manufacturing professionals,
both industry stakeholders and its constituents are on the way to professionalization. Since then, the PAPM, a privately operated non-stock, non-profit, non-sectarian, and non-political organization, has grown into the largest and only Philippinebased organization advocating the welfare of the paint industry.
Now on its 59th year, the PAPM is 76-members strong nationwide, including four new entrants who joined just recently. Under the PAPM’s leadership, the local paint and coatings industry has survived — and thrived — in one of the fastest-growing economies within the Southeast Asian region.
According to data from the Philippine Statistics Authority (PSA), the country’s Gross Domestic Product (GDP) posted a year-on-year growth of 6.4 percent in the fourth quarter of 2019, powered by a strong services, manufacturing, and construction sector. In this environment, the native paint and coating industry comprised of more than two dozen paint and coating producers has registered a steady growth rate. With production plants based in and around Metro Manila and nearby provinces, the paint industry was in a prime position to ride in the economic headwinds by taking full advantage of the booming construction and industrial activities.
BOLSTERING THE RANKS
The paint industry is an evolving sector. New technologies and innovations are brought to life each year. To make sure that homegrown players are always up-to-date with the latest knowledge and technical know-how, the PAPM has instituted regular Paint Technology Courses (PTC) that tackle various aspects of paint production. This holistic approach enables attendees to understand the chemistry and functions of each of each ingredient going into the paint and the effects it has on the final property of the finished product.
“Our Paint Technology Course (PTC) teaches the members the important aspects of paint coating technology. It has two parts, the Basic and Advanced modules. The regular conduct of the PTC ensures that attendees are imparted with muchneeded expertise and exposed to global best practices. This is our way of conveying to our members the benefits of joining the association,” Ongsue shares.
To further equip members with technical proficiency, especially on emerging technologies and new raw materials used abroad, the PAPM also organizes a variety of different technical symposiums and product-specific seminars where technical experts share their knowledge and entertain any inquiry about specific concerns from attendees. “We also have our annual technical symposiums where we bring everybody together, members and suppliers all under one roof, to discuss technological breakthroughs and current drivers and trends in paint production and other related fields. Here, our members get to talk to the right people,” Ongsue explains.
CHALLENGES AND OPPORTUNITIES
Thanks to new technology and lean manufacturing processes the paint industry is flourishing under the favorable atmosphere of a strengthening Philippine economy. Meanwhile, there was also an increase in regulations, sudden notices and various directives all mandating strict compliance under the threat of sanctions and penalties. Though the industry faces these challenges, the PAPM leadership reiterates its commitment to continue working with government regulators for better understanding and improved compliance.
“The PAPM is ready to work hand in hand with the government in reaching an understanding for better compliance in laws and regulations concerning the industry. Through active collaboration and close consultation with state agencies, we aim to smoothly iron out the issues we are having in trying to comply with regulations,” Cheng echoes.
The spirit of cooperation and active collaboration within PAPM has resulted in successful initiatives that spurred positive changes. When there was a public clamor and worldwide campaign to phase out the use of lead in paint manufacturing, PAPM members were among the first to respond to the call. Local paint manufacturers phased out lead-based raw materials in their paint production. As a result, chemical safety and zero waste watch group EcoWaste Coalition lauded the PAPM, the Department of Environment and Natural Resources – Environmental Management Bureau (DENR-EMB), as well as the Global Alliance to Eliminate Lead Paint (GAELP) in promoting the international target of phasing out paints that contain toxic lead.
STRONG PAPM
Aside from the 59th Founding Anniversary celebrations, today’s gathering also witnesses the induction of a new set of Board of Directors. In this light, the PAPM top brass understands that when it comes to succession planning and long-term projection, the ability to identify and nurture the next generation of leaders is key. On this end, the incoming batch of leaders are hard at work in fostering a strong culture of leadership in the young blood, the new generation of business leaders that are taking over their respective family-owned businesses.
“Most of our paint manufacturers are on the second or third generation. Hence, we noticed that there has been a ‘changing of the guard.’ So we want to go back to our roots, to the original ideals that led to the establishment of the PAPM. We came up with the slogan S.T.R.O.N.G (Strengthening the roots of the next generation) PAPM to remind ourselves of what needed to be done. We want our members to re-learn the basic foundations, like important information about government regulations, and other key capabilities,” Tan explains.
“We also put up a Productivity Committee that will organize leadership trainings, symposiums, safety seminars and other soft skills that are needed by future paint manufacturers. Now that there is an influx of foreign producers setting up shop locally, this is our way of assuring that Filipino paint manufacturers will continue to play a greater role in the years to come,” Tan adds.
Aside from these efforts, the new PAPM chief confirms that the Philippines will again host the Asian Paint Industry Council (APIC) 2021 Meeting, just in time for the PAPM’s 60th anniversary. During the APIC Meeting, all the paint industry associations from across Asia, Australia and New Zealand – with guests from the United States and Europe – gather and discuss environmental and technical issues, exchange technical knowledge, adopt global best practices and understand local experiences in complying with rules and regulations.
“We would like to focus on the 60th anniversary next year and the preparations for the APIC 2021 Meeting. We are excited to serve this prestigious 60-year old organization and are humbled by the achievements of past presidents as we look behind how far we’ve come. The way that local players have dominated the industry is a testament to the leadership of PAPM’s past presidents. We want to continue this tradition of excellence and pass it on to the next generation,” Tan concludes.
Like a rainbow composed of different colors yet united as one in shining through the bright blue sky, the PAPM’s strength lies in the unique camaraderie among its members. As the new Board of Directors take their respective oaths today, they lead the current generation in keeping the local industry alive and resilient in the face of challenges, both foreign and domestic. They may be business competitors today but everybody shares a golden principle — the future performance and long-term sustainability of the industry lies not in the strength of one, but in the unity of the whole.