Metal Coating, Engraving & Heat Treating NAICS 3328

Oct 21, 2025 - Alternatives to Legacy Solvents

• Stricter environmental regulations and rising sustainability expectations are putting pressure on manufacturers to modernize their cleaning processes by switching to next-generation cleaning fluids, Products Finishing reports. Forward looking companies are phasing out legacy solvents like n-propyl bromide (nPB), perchloroethylene (Perc) and trichloroethylene (TCE) that have been linked to significant environmental and health risks, including cancer, and shifting to safer, high-performance alternative fluids, according to PF. Modern vapor degreasing fluids (MVDFs) were developed to deliver cleaning results equal to or better than legacy solvents, while meeting current health, safety, and environmental standards. Advantages include higher solvency power, broad compatibility, low-surface tension and fast drying, non-flammability and thermal stability. Moreover, MVDFs feature low global warming potential, zero ozone depletion potential, and don’t contain substances of very high concern (SVCH). Lastly, their use supports compliance across the US, UK, and EU jurisdictions, per PF.
• 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 5.9% in August compared to a year ago, after rising 4% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have been rising steeply and steadily since early 2021 as demand for finished metal goods increased with the reopening of the economy following the pandemic. Employment by the industry shrank 1.7% in July and remains below pre-pandemic levels. Meanwhile, average wages at coating, engraving, heat treating, and allied activities rose 0.9% in July to a new high of $24.50 per hour, BLS data show.