Coatings trends carry on
By Staff -- Purchasing, 1/15/1998
There are few surprises ahead for the paints and coatings industry, with growth pushing up 3%/yr, according to a recent study. Demand for some product types will remain flat, but several should show higher demand spikes.Architectural coatings are the largest application for paints, accounting for 42% of total use. They are expected to rise 3.5%/yr through 2001, according to a recent study by Impact Marketing Consultants, a Manchester Center, Vt-based research group.
The mix of paint products continues to change, but in the same directions seen in recent years. Water-based paints will continue to grow at the expense of solvent-based products, but they now make up 68% of exterior paints and 85% of interior, so growth will continue to slow in coming years.
In OEM markets, the strongest growing product area remains powder coatings, which are used for automotive coatings. Growth is projected at 8.5%/yr. Special-purpose coatings, such as traffic and marine paints, will grow 3.8%/yr.
The consolidation of paint producers will continue, but at a slower pace. Changes in the '90s have been dramatic. According to Impact: Twelve of the top 40 paint suppliers have merged or gone out of business since 1990. While acquisitions will continue, there are far fewer small and mid-size companies left to be gobbled up.
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