Metal Coating, Engraving & Heat Treating NAICS 3328

Dec 21, 2025 - SMART Water Systems

• Water is a precious resource that can also be a strategic one for metal finishing firms, Product Finishing reports. Strategic monitoring and automated resource tracking (aka SMART) water systems represent a major operational shift for the metal finishing industry. By integrating sensors, automation, and real‑time data analytics, SMART water systems turn water from a consumable into a strategic, controllable resource. For finishers, SMART systems lead to higher, more consistent part quality by continuously monitoring rinse water conductivity, turbidity, and contamination to prevent defects, staining, and adhesion failures. Optimized rinse cycles, reduced drag‑out, and better chemical recovery cut water use, chemical consumption, and rework, lowering operating costs. Automated alerts and wastewater audits help finishers stay ahead of regulatory requirements while supporting environmental, social, and governance (ESG) goals, and predictive maintenance and early detection of leaks or equipment issues reduce downtime and extend system life, resulting in greater process reliability.
• Tariffs are raising the cost of raw materials, including steel, zinc, nickel, and other coating and plating materials, used by the metal finishing industry and threaten to disrupt supply chains and the industry’s customers. In June, the Trump administration imposed 50% tariffs on steel and aluminum imports to the US making those metals more expensive and harder to come by. Trump’s “Liberation Day” announcement of reciprocal tariffs on a wide range of imports – including vehicles, auto parts, and appliances – in April (since delayed for 90 days), would have a significant impact on metal finishers' suppliers and customers as well. More broadly, the tariffs threaten to slow economic growth – reducing demand for metal finishing services – and could even drive the US economy into recession. In early April, J.P. Morgan Research raised the probability of a recession occurring in 2025 to 60% — up from 40%.

• While white and neutral colors continue to reign as the most popular choices for vehicles in North America this year, industry insiders expect consumers to gravitate toward bolder colors in years ahead. “We have been predicting that consumers will be ready now and in the next decade for color… and move away from all gray and beige,” said Misty Yeomans, manager of color styling at PPG. Automakers have already responded with Neoteric Yellow (Hyundai) and Molten Magenta (Ford). According to Kelley Blue Book’s 2025 color forecast vivid blue is increasingly popular because it stands out on the road and works well with a variety of car models. Blue’s growth in popularity is a reflection of shifting customer preferences, especially among younger drivers. Meanwhile, per BASF’s 2024-2025 Automotive Color Trends report, white represents 34% of car purchases, followed by black (22%), silver (14%), gray (10%), blue (9%), and red (8%).
• Producer prices for metal coating, engraving, and heat treating firms rose 4.8% in September compared to a year ago, after rising 5.1% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have been rising steeply and steadily since early 2021 when demand for finished metal goods increased with the reopening of the economy following the pandemic. Employment by the industry shrank 1.2% in August and remains below pre-pandemic levels, while average wages at coating, engraving, heat treating, and allied activities rose 1.1% over the same period to $24.29 per hour, down from their peak in July, BLS data show.