Canadian Finishing & Coatings Manufacturing Magazine - May/June 2023 - 18

PLATING AND ANODIZING: INDUSTRY OUTLOOK
Data Source: IBIS World, Metal Plating & Treating in Canada, September 2021
protection and electroplating services including but not
limited to aircraft components and military grade technical
equipment.
As metal plating provides services to steel and metal product
manufacturers the establishments are typically concentrated
in manufacturing hubs. Ontario is home to the bulk of the
industry accounting for 46 per cent of the industry in 2021.
The remaining businesses are concentrated in Quebec (19
per cent), Alberta (15 per cent) and British Columbia (11 per
cent). The market share of business locations also correlates
to both the population of Canada and the market share of the
industry revenue.
In Canada the competition can be quite high with many
firms offering similar services, which leads many to compete
heavily on price. In these instances, it is very advantageous for
a firm to differentiate their services as much as possible, lean
on their reputation, and the timeliness and overall quality of
the products produced. Applicators are using 3D printers to
make customized caps or plugs to offer extended services to
their customers, allowing more of the work to be completed
in-house. Firms are investing in equipment allowing them
to complete in-house product quality testing for a faster
turnaround on results for something like corrosion testing.
Firms are pushing their chemical suppliers to invest in the
equipment needed to offer a full analysis of their plating
solutions allowing them to troubleshoot in real time and avoid
costly downtime. Investments like this help differentiate
away from price and build loyalty with customers.
To ensure this predicted success is achieved there are
resources and funding available for the firms that seek it
out. There is government funding available specifically
for the expenditures relating to Scientific Research and
Experimental Development (SR&ED). Projects that are
set out to overcome specific scientific or technological
uncertainties would qualify. You can download the T661
E form from Canada Revenue Agency to apply for a claim
to receive an investment tax credit. The SR&ED program
specifically wants to know the hardships that went into the
trial, tribulations, and labour of designing scientific research.
This is typically performed in the lab making either product
or process improvements.
Some typical examples would be research and development
around the removal of non-REACH compliant chemicals that
are normally found in a process. An example of this would
be developing a boric acid free electroplating process that
typically would have contained boric acid. A business also
saw success in the development of a trivalent black chromate
that had the same appearance as a hexavalent black chromate.
Previously a noticeable difference existed between the two
passivates and customers had specific aesthetic preferences/
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requirements/desires that needed to be achieved. Work
was set out to design a pre-dip process that would allow the
trivalent black process to finish with the same appearance
as the traditional hexavalent chrome. The experimental
approach to solving this problem qualified for funding
through the SR&ED program.
With the government funding there are also industry
associations available for technical resources, education, and
support. The Canadian Association for Surface Finishing
(CASF) has the mantra that we are " Stronger Together " and
membership in the association provides regulatory advocacy,
networking events, and training. Being associated with CASF
can help ensure your voice is heard within the industry, your
business is successful, and the overall industry succeeds.
Associations are a great place for businesses and experiences
of all sizes and levels. More information can be found online
at casf.ca.
In review of the competitive landscape, operating
conditions, and the overall market sentiment four key success
factors have been identified for the plating industry to remain
competitive in the near and long term. These would include:
* The ability to offer a wide range of services to customers.
This allows operators to maintain a more stable customer
base, which leads to revenue streams being steadier.
* The ability to pass on cost increases to customers is
critical to maintaining a higher profit margin. Some of
these increases would include the prices of steel and zinc.
* Investment and access to new technologies
and
techniques. Businesses that invest in the most robust
and efficient processes reduce long-term operating costs.
Automation can also lead to improved efficiencies.
* Economies of scale. Trying to find synergies with
technology, automation, environmental, input costs, and
labour costs helps to boost profit and efficiency. This
is easier for larger businesses to achieve but smaller
businesses can also be creative and take advantage of
funding and association support to focus on economies
of scale as well.
Like many other Canadian industries, the metal finishing
and plating industries have recently experienced a period
of hardship. Economic forces and global events beyond the
control of the industry lead to a period of decline. However,
looking to the future for growth opportunities there is
certainly reason to be optimistic.
Mike Black, marketing manager for Dynamix Inc., is an
experienced professional with a demonstrated history of
working in the chemical industry. He can be reached at
mblack@dynamix-inc.com
http://www.casf.ca http://www.cfcm.ca
Canadian Finishing & Coatings Manufacturing Magazine - May/June 2023

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