We’re winning on EVs where EVs are winning, which is China. So we’re doing well with the number one China EV player, and they’re doing well. If you look at builds now of EVs, they were up over 10% of global builds now are EVs. And in China, which is where we’re having most of our success, over 20% now of all vehicles sold in China are EVs. So we like what we’re seeing from a penetration standpoint and we’re pleased with our progress, but still a lot more to do there.Vincent Morales Just to add, again, we came into the year with a low to mid-single digit projection on global builds for the year. Q1 was – for the industry was 5%. So Q1 outperformed the initial projections for the industry.Operator Our next question comes from Michael Leithead with Barclays.
Your line is open.Michael Leithead Perfect. Thanks. Good morning, guys. Real briefly, just on North American architectural, there’s obviously a few moving pieces with all the wins you flagged. So I guess, high level, what do you assume or you think the industry is growing at this year versus what do you think PPG is going to be able to grow at?Timothy Knavish I think it’s — the reality is the industry in totality is going to be soft, driven by what’s happened on two fronts. Number one, housing. And number two, you still have some post-COVID hangover from the DIY side due to what everybody did, painting their houses during that period. So industry-wide, that’s what we’re seeing.For PPG, we’ve got a number of programs, as you say, with obviously our Walmart win, the launch of The Home Depot Pro program.
Our mix were not as big on new build as we are on construction and maintenance. So we’re thinking about it a little bit better than the rest of the industry. But driven by housing and driven by DIY, we expect this overall to be a challenging year in architectural U.S.Vincent Morales Yeah. And Mike, just another reminder here. We’re — paint is typically the last part of the cycle. So as housing starts have come down the past several quarters, we’re still working off those backlogs from a paint perspective. If you look at the mixture of housing starts, roughly 60% are single-family. Those have come down already. I’m not sure if they bought them yet or not. There’s some positive signs that they at least flattened.If you look at multifamily, multifamily is a still a very high record.
And those will be delivered late this year or maybe early next year. And we do think there’s an air pocket after that to the credit liquidity, et cetera. Again, 60% single-family, 40% multifamily. So we haven’t seen the negative effects at multifamily.Operator Our next question comes from Laurence Alexander with Jefferies. Your line is open.Laurence Alexander Good morning. Could you just briefly flesh out how your outlook for U.S. infrastructure and particularly current view, kind of sort of your assumptions for the back half of the year and the landscape for — or the pipeline for potential bolt-on M&A and particularly like how you’re thinking about opportunities in the emerging markets?Timothy Knavish Yeah. Sure, Laurence. On the — the outlook for infrastructure, we’re quite positive on that as the infrastructure spending is starting and there’s a lot more projects in the queue.
And we have a number of portfolio positions that should help us there. Our Protective Coatings business, some of our industrial coatings business and certainly, our Traffic Solutions business. So we’re positive on that ramping up as we move through not only this year but into the future.Vincent Morales Yeah, Laurence. On the M&A environment, yeah, I’d still say it’s somewhat active, not consistent. Historically, it’s been more active. There’s certainly some deals or some files that are percolating of the small kind of vintage. So there’s still an issue if you’re a buyer or a seller, coming up with a price based on the past 12-month financials. Again, we said many times, we would expect a few deals to get done in our space each year and that’s our same expectation this year.Operator Our next question comes from Laurent Favre from Exane BNP Paribas.
Your line is open.Laurent Favre Yes. Hi. Good morning. Two very quick questions, please. The first one is, on manufacturing. Can you size that opportunity for us? And is it just about China where you see that COVID issues in the early part of Q1 or do you also see an opportunity in Europe and U.S.? And the second question was just on marine and protective. It sounds like that was a bit surprise for you in Q1. You thought it would be down, was up. I’m just wondering, if you can share your thoughts there. Thank you.John Bruno Hi, Laurent. This is John. I’ll start with the manufacturing one, and Tim will take the second part. So if you go back to January of ’22, we talked about significant manufacturing challenges we had due to supply disruptions in the fourth quarter of ’21.
And we quoted about a $0.20 EPS impact. That was the height of the impacts. And every quarter since, we’ve had some type of negativity. Now this quarter, the first quarter of 2023, we were close to being breakeven on a year-over-year basis, and we expect that to get better as we go forward. So the objective is for us to claw back all of the inefficiencies that we’ve had in the last five quarters.Timothy Knavish Yeah, I’ll take the protective and marine side. The way I think about this business right now is, it’s well positioned for infrastructure, near-shoring, energy, a lot of the investments that are happening around those areas. And also, in marine, where we have really pivoted our focus to marine aftermarket, which is doing well. So when you add those all together, we were up high-single digits in Q1 and we expect to be up mid-single digits again in Q2.
So that’s one of the businesses that we’re pretty bullish on.Operator Our next question comes from Frank Mitsch from Fermium Research. Your line is open.Frank Mitsch Good morning, gentlemen. Congrats on the start to the year. Vince, you took a $144 million charge due to the pension benefit obligation. I’m curious as to what sort of future cost benefit might we expect from that action? And Tim, obviously, very impressive progress on price and your expectation is that you’re going to have positive price for the balance of the year. But as we see deflation from record raws, any concerns on potential price givebacks in any of your businesses? Thank you.Vincent Morales Thanks, Frank. This is Vince. Yeah. Just a reminder, we do have a step up in 2023, a non-cash step-up as it relates to pension expense.
Fairly significant, $10 million to $15 million a quarter. We did annuitized a portion of our pension plan. The benefit from that from an expense perspective is fairly minimal. It’s about $1 million or $2 million a quarter. So nothing sizable relative to step-up we’ve had coming into the year.Timothy Knavish Yeah. And Frank, on price, so on protective, we expect very little, if any, any price give back as we — I’m sorry, I said protective, I meant performance. On performance, in total, we expect very little give back as we move through the year. On industrial, I’ll remind, about 30% of our industrial segment business, the pricing is based on index arrangements. So if there is raw material deflation, those indexes will kick in, but there’s a delay of multiple quarters depending on the contract.
So that’s more of a ’24 issue for us.And beyond that, more generally, I’d say, we — obviously, we watch this very closely every day and churn would be our primary indicator if there’s something we need to act upon. Our competitors are facing the same basic cost structure and cost inputs that we are and we watch our churn. And to-date, we’ve seen very little churn, as I mentioned earlier, other than a little bit in Asia.Operator Our next question comes from John Roberts from Credit Suisse. Your line is open.John Roberts Thank you. Where within the Performance segment were you able to get additional price or was that mix with the aerospace business just improving in the mix?Timothy Knavish Well, there were both factors. The mix element, part of it was our aerospace business, no doubt.
As the first part on where we’re able to get price, we got incremental price in almost all parts of our performance segment. So architectural, refinish. And I’d just remind that while we are seeing moderation and some raw material inflation, we’re still seeing inflation in wages and indirects and some raw material categories. So I’d say that incremental price was largely in response to incremental inflation.Vincent Morales Yeah, John. This is Vince. Just for clarity, we — as we break out these numbers for you guys externally, we have price separate. We put in business mix, regional mix, product mix. We combine that with volume. And if you look at both our original guide and our updated guide or updated final numbers, we benefited from incremental pricing, stand-alone pricing, so invoice pricing.Secondarily and separately, we benefited from regional mix.
