UK coatings industry embraces AI and sustainability amid economic uncertainty
The 2024 British Coatings Federation (BCF) Annual Conference provided a dynamic forum for reassessing the UK coatings industry's trajectory amid evolving economic, regulatory, and technological landscapes. Opening with a keynote from Dr Daniel Thorniley, the conference set a tone of candid realism balanced with constructive optimism. Thorniley warned that "uncertainty is killing the business," underscoring the urgency for the sector to transition from hopeful anticipation to strategic action in facing rising regulatory demands, increasing costs, and subdued investment. Notably, he predicted that the UK would "inevitably" rejoin the European Union within the next 10 to 15 years, a perspective that challenges current geopolitical assumptions. Despite noting that manufacturing and chemicals have not recently been global leaders, Thorniley urged the industry to resist pessimism, asserting, "The worst is behind us."
Digital transformation was a persistent theme throughout the event, reflecting the coatings sector's recognition of technology as both a challenge and a lever for future growth. A panel discussion on artificial intelligence (AI) and data-driven innovation actively engaged attendees, revealing a spectrum of engagement with AI tools. According to a live Slido poll, nearly half of the participants had experimented with AI applications such as ChatGPT, while 16% reported integrating AI into their daily workflows. However, about a third either understood AI in principle but did not use it or were uncertain about how to start. Importantly, only 5% identified the risk of being technologically left behind as their primary concern, suggesting a collective confidence in the sector’s capacity to adapt.
Economic volatility dominated delegates’ concerns, with 42% identifying it as the principal challenge for the coatings industry over the next five years. Regulatory pressures were a close second at 38%, while talent acquisition and retention accounted for 15%. This focus suggests that while technological adaptation is ongoing, broader systemic issues like economic fluctuation and compliance demands are more immediate priorities for the industry.
The conference showcased the BCF’s proactive approach to addressing workforce sustainability through the launch of its new Careers Strategy, aimed at attracting younger generations by positioning coatings as a purpose-driven sector with meaningful societal impact. This initiative is complemented by the establishment of the Coatings NextGen Council, which seeks to nurture emerging leaders within the industry, further emphasising long-term human capital development.
On the economic front, the UK coatings market was described as "flat," underperforming relative to national GDP growth. Yet, stabilising economic indicators and easing inflation foster a cautiously optimistic outlook. Presentations from the UK Government's Department for Business, Energy & Industrial Strategy (BEIS) emphasized growth drivers aligned with net-zero ambitions for energy, chemicals, and coatings, signalling commitments to sustainability even amid economic headwinds. Complementing this, the Bank of England’s economic forecasts predict inflation to have peaked at 10% before easing to around 3%, framing a challenging but improving macroeconomic environment.
Sustainability remained a central pillar throughout the conference, with discussions highlighting industry-wide efforts such as the launch of the first global coatings industry's sustainability report and strategic plans for achieving net-zero manufacturing. Important conversations centred on paint recycling and the implications of packaging extended producer responsibility reinforced the sector’s commitment to environmental stewardship alongside economic viability.
Further enriching the discourse, industry experts shed light on the complexities of digital innovation. Speakers drawn from AI Tech UK and Make UK addressed both the transformative potential of AI in streamlining business processes and the barriers posed by high energy costs and skills shortages. Academia was represented by Professor Allan Matthews of the University of Manchester, who stressed the value of integrating coatings design early in the manufacturing process to enhance efficiency and innovation.
Amid these multifaceted discussions, the conference also spotlighted the sector’s social responsibility, with delegates raising over £2,000 for the Community Heartbeat Trust to support lifesaving defibrillator installation across the UK, illustrating the community-oriented ethos within the coatings industry.
In sum, the 2024 BCF Annual Conference communicated a clear message: while challenges ranging from economic unpredictability to regulatory complexity remain, the UK coatings industry is not merely surviving but evolving. Through innovation, sustainable practices, digitalisation, and strategic talent development, it demonstrates resilience and readiness to meet future demands with renewed purpose.