Paint Manufacturing in the US Industry Market Research Report from IBISWorld has Been Updated
The Paint Manufacturing in the US industry has endured shifts in demand, high raw material costs and strict government regulation regarding different paints' chemical compositions, but the industry is still expected to continue returning to its prerecessionary stable growth in 2013. For these reasons, industry research firm IBISWorld has updated a report on the Paint Manufacturing in the US industry in its growing industry report collection.
Los Angeles, California (PRWEB) June 25, 2013
The Paint Manufacturing industry provides protective and decorative finishes for many US products in various end-use markets. For instance, the construction sector needs paint for the houses and commercial buildings it constructs, and the manufacturing sector requires paint for products like cars and boats. “While paint is essential to many industries, paint manufacturers remain vulnerable to economic shifts,” according to IBISWorld industry analyst Radia Amari. In the five years to 2013, revenue has been increasing at an estimated average annual rate of 0.9% to $24.7 billion, though the slow growth has not been consistent. When the housing market declined from its peak in 2005, contractors and builders slowly reduced their paint purchases. When the subprime mortgage crisis hit and consumer spending declined, many downstream buyers of paint, such as the manufacturing sector, reduced production and, thus, demanded less paints and coatings. Since 2010, however, the economy has begun to recover and manufacturing activity has picked up, boosting paint sales.
In addition to shifts in demand, the Paint Manufacturing industry has endured high raw material costs and strict government regulation regarding different paints' chemical compositions. Nonetheless, the industry is expected to continue returning to its prerecessionary stable growth in 2013, with revenue growing an estimated 1.2%. “As the economy expands and consumer spending increases, downstream customers will increase production and purchase more paint during the five years to 2018,” says Amari. Rising demand from key purchasers, like car manufacturers and residential builders, will boost sales of industry products, helping revenue rise.
The industry has a low level of industry concentration, reflecting its fragmented nature and the existence of a large number of small mom-and-pop paint formulators, though many of these are gradually disappearing as consolidation continues. Of the 817 industry players in operation in 2013, the majority are small enterprises. This low concentration is also echoed on the global scene, despite the increasing degree of globalization. Major players include PPG Industries Inc., The Valspar Corporation and The Sherwin-Williams Company.
While revenue is projected to increase in the next five years, the number of firms is expected to decrease. Some manufacturers have already exited the industry because of their financial struggles during the recession. Other companies will likely partake in mergers and acquisitions. With rising costs from new government regulations and expensive raw materials, companies will focus on improving their efficiency by acquiring other firms to increase economies of scale. As a result, enterprise numbers are anticipated to decrease in the five years to 2018.
For more information, visit IBISWorld’s Paint Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures various paints, timber finishes and other surface coating products to decorate and protect surfaces against wear, weather and corrosion. Key products include paints, varnishes, lacquers and stains. Other products include fillers, wood fillers, putties and prepared paint thinners and removers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/6/prweb10870400.htm