US paint industry to benefit from the reviving US economy

Press Release   •   Feb 04, 2013 15:21 GMT

The US paint industry was valued at $22.1 billion in 2011. Although growth from 2007 to 2011 was less than exciting, it is expected the market will benefit from the reviving US economy, as well as a number of other factors, and will near $30 billion in 2021.

Many factors are paving the way for the US paint market. As the number of construction projects increases, consumers resume their spending and as the demand for industrial production is raised, the paints and coatings market will benefit.

At the same time, there are a number of factors inhibiting market growth, such as more stringent environmental regulations and higher prices of base ingredients.

Large companies include Benjamin Moore, RPM International, Sherwin-Williams, Valspar, and divisions of DuPont and PPG. The industry is highly concentrated: the largest 50 companies account for about 80% of revenue.

Major products are "architectural paints" (house paints), product finishes, industrial paints, and miscellaneous products like varnish removers and paint thinners. House paints account for about 40% of industry revenue; product finishes (for cars, furniture, etc.) for 25% and industrial coatings for 20%.

While revenue is projected to increase in the next five years, firm numbers are expected to decrease. Some firms 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.

For more information on the US paint industry, see the latest research: US Paint Industry

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