The U.S. Paint Industry
The industry is divided into three broad segments:
Architectural coatings which account for 43% of the total industry dollar sales
Original equipment manufacturing (OEM) coatings account for 35% of the total industry dollar sales
Special purpose coating accounts for 22% of total industry dollar sales
The industry is generally considered to be maturing
Industry sales in 1999 were estimated to be over $13 billion
The average annual dollar sales growth is forecasted to approximate the general rate of inflation through 2000
U.S. sales of architectural paint coatings and sundries are estimated at $10 billion plus in 1999
Architectural coatings are considered to b a mature market with long-term sales growth projected in the range of 1-2% per year
Demand is affected by 2 factors:
Competition fro alternatives such as aluminum and vinyl
Higher quality products have reduced the frequency for repainting
The trend toward do-it-yourselfers may help increase demand
Growing pressure from the EPA to reduce emissions of volatile organic compounds (VOCs) and limit consumption of solvents
Many mergers and acquisitions are taking place
The are currently 600 paint companies ? 40% fewer companies than in 1975
The rate of decline is 2-3% per year
7 major producers of paint account for 60% of sales in architectural coatings
50% of architectural coatings are sold under private, controlled, and store brands
Specialty paint stores account for 36% of paint sales
50% of architectural coatings dollar sales is accounted for by DIY painters
Professional painter purchases account for 25% of dollar sales
The remainder is from government, export and contractor sales
60% of architectural sales are for interior ...