Coil Coating Bucking the Odds

Despite a slower housing market and steep interest rate hikes, participants in the metal coatings space are  optimistic about the year ahead.  

An industry tied so directly to construction, residential and nonresidential alike, might be on edge entering the second half of 2023. But participants in the painted metal space are mostly optimistic about what the future holds.

The optimism comes against some notable headwinds, particularly the Fed’s efforts to curb the inflationary conditions that characterized 2022. That remains the biggest threat to Nucor’s outlook. “We have experienced steep interest increases over the past year or so, as a weapon against high inflation. As expected, the battle to dial back inflation has also posed some challenges to economic growth, particularly in the residential housing market. We are hoping the U.S. economy can avoid an outright recession and that a balance between inflation, interest rates, employment levels and economic growth can be found,” McDonald says.