Canadian Paint & Coatings Industry Market Update

Orr & Boss, a CPCA Affiliate Member, completed a Canadian Market Update for CPCA to address outstanding and ongoing questions caused by the pandemic for the paint and coatings industry in Canada.  We would like to thank Doug Bohn at Orr & Boss for leading this effort, which we hope will be informative for members. Before getting into the market issues, below is a summary of Government Support for industry and references to Emergency Orders designating essential workplaces that can remain open, which covers paint and coatings in all Provinces. In all cases there is of course specific best practices required related to social distancing, enhanced sanitization practices and other actions as specified and noted on Government sites.

The President of Chemquest Group, Dan Murad, did an interview with the Paint and Coatings Industry (PCI) Magazine related to the coatings supply chain and impacts that you might find of interest. (https://www.pcimag.com/articles/107306-podcast-covid-19-and-the-coatings-supply-chain)

CPCA’s Acknowledges Government Support Critical to Recovery

In recent weeks, as in other countries, federal and provincial governments have been focused on stimulus spending on both the supply and demand side, which should help a speedier recovery when it comes. The stimulus comes from both monetary policy with near-zero interest rates and fiscal policy with new spending that will likely exceed $200 billion in total over the next several months. CPCA has been working to ensure members are fully aware of the programs introduced since the beginning of this crisis, which can be accessed at www.canpaint.com.

The federal support has been robust for business on the supply side with low-interest loans, a portion in forgivable loans for SMEs, HST and corporate tax deferral payments for all businesses, work-sharing programs, business credit availability, liquidity facilities, export credit support and more. On the demand side they have provided programs for 75 per cent wage subsidies for business up to a maxim of $58,000 per worker; emergency Employment Insurance benefits for temporarily laid-off workers; emergency relief funds for workers of $2000/month for those who have earned $5000 in the previous year with the same amount for workers in the home supporting the sick and vulnerable; $200/child for those with children under 12; and much more. Provincial programs also provide support for the economy on both the supply and demand side which will supplement federal efforts. Please consult the CPCA website for details on federal and provincial programs of relevance to your circumstances and those of your workers and family members.

CPCA has also advocated to have the paint and coatings industry listed as an essential service, as it exists in most provinces, with Ontario and Quebec moving first in that regard. Other provinces have followed suit indicating which businesses can remain in operation under their respective Emergency Orders legislation. Businesses remain open with specific social distancing and sanitization requirements. We are pleased that the  paint and coatings manufacturing sector, including their retail operations, can continue with certain limitations related to preventing community spread. In addition to social distancing and enhanced sanitization for retail operations, for example, this also includes online sales and curbside delivery for customer purchases.

A large part of CPCA’s work during these difficult times has been focused on ensuring that governments, stakeholders and the public understand the industry’s steadfast commitment to health and safety in the workplace for both employees and customers across the entire supply chain. Advocacy actions were taken directly with governments and in concert with larger coalitions of which CPCA is a member such as the 50 associations that are members of the Canadian Manufacturers Coalition. We also sought regulatory relief measures where they apply in concert with the Canada Business Council, mostly related to chemical and related environmental requirements via Environment and Climate Change Canada (ECCC). This was done to limit federal government actions related to non-compliance in areas where members may not be able to respond to deadlines and reporting requirements due to limited staffing and other challenges. We did so to prevent potentially negative impacts to the reputation of longstanding brands in Canada. Fortunately, the Environment and Climate Change Canada Minister formally responded, in writing, that  he understands the impact COVID-19 might have during these difficult times and that his Department “will exercise enforcement discretion to take into account any challenges that regulated parties may face as a result of the current pandemic.”

While the situation is fluid and remains uncertain, the Association is hopeful that these and other initiatives will help all members emerge from the pandemic and continue business operations for a stronger second half of 2020. Please advise CPCA of any specific requirements which you may have in the coming days. Rest assured that the board is updated regularly and providing guidance as needed.

Gary LeRoux
President & CEO