The US paint and coatings industry includes about 1,400 companies with combined annual sales of $20 billion. Large companies include Sherwin-Williams, Benjamin Moore, RPM International, Valspar, and divisions of Akzo Nobel, DuPont, BASF, and PPG. The industry is highly concentrated: the largest 50 companies hold 80 percent of the market. Most manufacturing plants are midsized, with 20 to 250 employees and average annual sales of $30 million.
COMPETITIVE LANDSCAPE
Demand is driven by industrial production and the housing market. The profitability of individual companies depends on technological expertise and efficient production. Small companies can compete successfully with large ones because of the large number of paints and coatings used for a wide variety of applications, including decoration, water resistance, and corrosion resistance. The industry is highly automated: average annual revenue per employee is about $430,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are "architectural coatings" (house paints), product finishes, industrial coatings, and miscellaneous products like varnish removers and paint thinners. House paints account for about 40 percent of industry revenue; product finishes (for cars, furniture, etc.) for 25 percent; industrial coatings for 20 percent.
Paints and coatings consist of three major components: a resin or polymer that will ultimately form the coating layer, a pigment that provides color, and a solvent or vehicle that holds the resin and pigment in liquid form and evaporates once the liquid mixture is applied. Additives can be used to alter ...
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