TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION xi
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 6
Population, Demographic & Household Trends 10
Personal Consumption Expenditures 13
Manufacturing Sector Overview 15
Construction Overview 18
Building Construction Expenditures 22
Residential Construction 24
Housing Completions 27
Housing Stock 31
Residential Improvements & Repairs 35
Nonresidential Building Construction 36
Siding Trends 38
Raw Materials 41
Environmental & Regulatory Considerations 43
Volatile Organic Compounds 45
Pigments 47
Solid Waste Recycling 47
Paint Industry Regulations 48
World Paint & Coatings Demand 51
III. OVERVIEW 55
Supply & Demand 55
Historical Market Trends 57
Formulations 60
Water-Based 61
Solvent-Based 62
Powder Coatings 63
Other 63
Substrates 64
Pricing Trends 66
Foreign Trade 69
Imports 71
Exports 73
IV. ARCHITECTURAL MARKETS 76
Supply & Demand 76
Historical Market Trends 77
Markets 79
Residential Building Construction 81
New Construction 83
Improvement & Repair 86
Nonresidential Building Construction 88
Applications & End Users 90
Interior 92
Exterior 94
Formulations 97
Water-Based 98
Solvent-Based 99
V. MANUFACTURING MARKETS 101
Supply & Demand 101
Historical Market Trends 102
Markets 105
Furniture & Fixtures 106
Furniture Industry Outlook 107
Coatings Demand 109
Suppliers 111
Motor Vehicles 112
Motor Vehicle Production Outlook 113
Coatings Demand 114
Suppliers 117
Packaging 119
Packaging Industry Outlook 119
Coatings Demand 123
Rigid Containers & Closures 125
Flexible & Paper Packaging 126
Suppliers 127
Metal Building Components 128
Nonresidential Fixed Investment 129
Coatings Demand 130
Suppliers 132
Machinery 132
Machinery Outlook 133
Coatings Demand 134
Suppliers 136
Appliances 137
Appliance Industry Outlook 137
Coatings Demand 139
Suppliers 141
Aerospace & Other Transportation Equipment 142
Aerospace & Other Transportation Equipment Outlook 142
Coatings Demand 145
Aerospace Coatings Suppliers 148
Lawn & Garden Equipment 149
Lawn & Garden Equipment Industry Outlook 150
Coatings Demand 151
Flooring 153
Hard Surface Flooring Outlook 153
Coatings Demand 156
Other Manufacturing Markets 157
Formulations 159
VI. MAINTENANCE & SPECIALTY COATINGS 162
Supply & Demand 162
Historical Market Trends 163
Markets 165
Industrial Maintenance 167
Nonresidential Building Improvements & Repairs 168
Coatings Demand 169
Suppliers 173
Automotive Refinishing 175
Motor Vehicle Park 175
Coatings Demand 176
Suppliers 179
Roads & Bridges 182
Highway & Street Expenditures 182
Coatings Demand 184
Suppliers 187
Marine Equipment 188
Marine Equipment Outlook 189
Coatings Demand 190
Suppliers 193
Other 194
Formulations 196
VII. INDUSTRY STRUCTURE 198
General 198
Industry Composition 200
Architectural & Decorative Paint 203
Industrial Coatings 208
Acquisitions & Divestitures 212
Cooperative Agreements 218
Distribution 219
Competitive Strategies 221
Company Profiles 222
Ace Hardware Corporation 224
AD Fire Protection Systems, see RPM International
Akzo Nobel NV 225
BASF SE 230
Becker Powder Coatings, see Sherwin-Williams
Behr Process, see Masco Corporation
Benjamin Moore & Company, see Berkshire Hathaway
Berkshire Hathaway Incorporated 232
Bondo Corporation, see 3M Company
Cabot, see Valspar
Carboline Company, see RPM International
Chemcraft International, see Akzo Nobel
Chemprobe Coating Systems, see Tnemec Company
Coatings Resource Corporation, see PPG Industries
Color Wheel Paint, see Consorcio Comex
Columbia Paint & Coatings, see Sherwin-Williams
Consorcio Comex SA de CV 239
DAP Products, see RPM International
DayGlo Color, see RPM International
Diamond Vogel Paints 242
Dryvit Systems Incorporated, see RPM International
Dunn-Edwards Corporation 245
DuPont (EI) de Nemours 249
EFTEC, see EMS-Chemie Holding
EMS-Chemie Holding AG 251
Ennis Paint Incorporated 252
E Wood Holdings, see 3M Company
Ferro Corporation 255
Flood Company, see Akzo Nobel
Frazee Paint, see Consorcio Comex
Fujikura Kasei Company Limited 257
Fuller (HB) Company 259
General Paint, see Consorcio Comex
House of Kolor, see Valspar
Hydro-Stop, see Quest Specialty Chemicals
Imperial Chemical Industries, see Akzo Nobel
Innovative Performance Systems, see Ennis Paint
Insl-x Products, see Berkshire Hathaway
International Paint, see Akzo Nobel
Jones-Blair Company 261
Kelly-Moore Paint Company Incorporated 263
KST Coatings, see Sherwin-Williams
Kwal Paint, see Consorcio Comex
LORD Corporation 265
MA Bruder & Sons, see Sherwin-Williams
Majic Paints, see Yenkin-Majestic Paint
Masco Corporation 267
MasterChem Industries, see Masco Corporation
Matrix System Automotive Finishes, see Quest Specialty Chemicals
Mays Chemical, see Fujikura Kasei
Metal Coatings International, see NOF Corporation
Neogard, see Jones-Blair
Nippon Paint Company Limited 270
NOF Corporation 273
OKON, see RPM International
Parker Paint Manufacturing, see Consorcio Comex
Pettit Paints, see RPM International
Plasti-Kote, see Valspar
PPG Industries Incorporated 275
Quest Specialty Chemicals Incorporated 281
Raabe Company, see Quest Specialty Chemicals
Red Spot Paint & Varnish, see Fujikura Kasei
Rohm and Haas Company 283
RPM International Incorporated 285
RustOleum, see RPM International
Sherwin-Williams Company 293
Sico Incorporated, see Akzo Nobel
Spectra-Tone Paint, see PPG Industries
Spraylat Corporation 299
StrataShield, see Tnemec Company
TCI Powder Coatings, see RPM International
Testor, see RPM International
Tennant Company 302
3M Company 304
TIGER Coatings GmbH & Company KG 307
Tnemec Company Incorporated 309
Tremco, see RPM International
Trinity Coatings, see Berkshire Hathaway
True Value Company 311
United Coatings, see Quest Specialty Chemicals
US Paint Corporation 313
Valspar Corporation 314
Vanex, see PPG Industries
Vista Paint Corporation 319
Yenkin-Majestic Paint Corporation 321
Zinsser Company, see RPM International
Zolatone Automotive, see Quest Specialty Chemicals
Additional Companies Active in the Industry 323
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 10
2 Population & Households 13
3 Personal Consumption Expenditures 15
4 Manufacturers' Shipments 18
5 Construction Expenditures 21
6 Building Construction Expenditures 24
7 Residential Building Construction Expenditures 26
8 New Housing Indicators 31
9 Housing Stock by Type 34
10 Residential Improvement & Repair Expenditures 36
11 Nonresidential Building Construction Expenditures 38
12 Siding Demand by Material 41
13 Raw Material Demand in Paint & Coatings 43
14 World Paint & Coatings Demand by Region 53
SECTION III -- OVERVIEW
1 Paint & Coatings Supply & Demand 57
2 Paint & Coatings Market, 1997-2007 59
3 Paint & Coatings Demand by Formulation 61
4 Paint & Coatings Demand by Substrate 66
5 Paint & Coatings Prices 68
6 US Foreign Trade in Paint & Coatings 71
7 Paint & Coatings Imports by Source, 2002-2007 72
8 Paint & Coatings Exports by Destination, 2002-2007 75
SECTION IV -- ARCHITECTURAL MARKETS
1 Architectural Paint Supply & Demand 77
2 Architectural Paint Market, 1997-2007 78
3 Architectural Paint Demand by Market 81
4 Residential Building Construction Markets
for Architectural Paints 83
5 New Residential Construction Markets for Architectural Paints 85
6 Residential Improvement & Repair Markets
for Architectural Paints 88
7 Nonresidential Building Construction Markets
for Architectural Paints 90
8 Architectural Paint Demand by Application & End User 92
9 Interior Architectural Paint Demand 94
10 Exterior Architectural Paint Demand 96
11 Architectural Paint Demand by Formulation 98
SECTION V -- MANUFACTURING MARKETS
1 Manufacturing Coatings Supply & Demand 102
2 Manufacturing Coatings Market, 1997-2007 104
3 Manufacturing Coatings Demand by Market 106
4 Furniture Shipments 109
5 Furniture & Fixture Coatings Demand 111
6 Motor Vehicle Production 114
7 Motor Vehicle Coatings Demand 116
8 Packaging Supply & Demand 123
9 Packaging Coatings Demand 124
10 Rigid Container & Closure Coatings Demand 126
11 Flexible & Paper Packaging Coatings Demand 127
12 Nonresidential Fixed Investment on Structures 130
13 Metal Building Component Coatings Demand 132
14 Machinery Shipments 134
15 Machinery Coatings Demand 136
16 Appliance Shipments by Type 138
17 Appliance Coatings Demand 141
18 Aerospace & Other Transportation Equipment Shipments 145
19 Aerospace & Other Transportation Equipment
Coatings Demand 148
20 Lawn & Garden Equipment Shipments 151
21 Lawn & Garden Equipment Coatings Demand 152
22 Hard Surface Flooring Shipments 155
23 Flooring Coatings Demand 157
24 Other Manufacturing Markets for Coatings 159
25 Manufacturing Coatings Demand by Formulation 161
SECTION VI -- MAINTENANCE & SPECIALTY COATINGS
1 Maintenance & Specialty Coatings Supply & Demand 163
2 Maintenance & Specialty Coatings Market, 1997-2007 164
3 Maintenance & Specialty Coatings Demand by Market 167
4 Nonresidential Building Improvement & Repair Expenditures 169
5 Industrial Maintenance Coatings Demand 173
6 Motor Vehicle Park 176
7 Automotive Refinish Coatings Demand 178
8 Highway & Street Expenditures 184
9 Road & Bridge Coatings Demand 187
10 Marine Equipment Shipments 190
11 Marine Coatings Demand 193
12 Other Maintenance & Specialty Coatings Demand 195
13 Maintenance & Specialty Coatings Demand by Formulation 197
SECTION VII -- INDUSTRY STRUCTURE
1 US Paint & Coatings Industry Sales by Company, 2007 202
2 US Architectural & Decorative Paint Industry
Sales by Company, 2007 206
3 US Industrial Coatings Industry Sales by Company, 2007 211
4 Selected Acquisitions & Divestitures 214
5 Selected Cooperative Agreements 219
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2007 34
2 World Paint & Coatings Demand by Region, 2007 54
SECTION III -- OVERVIEW
1 Paint & Coatings Market, 1997-2007 59
2 Paint & Coatings Imports by Source, 2007 73
3 Paint & Coatings Exports by Destination, 2007 75
SECTION IV -- ARCHITECTURAL MARKETS
1 Architectural Paint Market, 1997-2007 79
SECTION V -- MANUFACTURING MARKETS
1 Manufacturing Coatings Market, 1997-2007 104
2 OEM Motor Vehicle Coatings Demand Relative to
US Motor Vehicle Production, 1997-2007 117
SECTION VI -- MAINTENANCE & SPECIALTY
COATINGS
1 Maintenance & Specialty Coatings Market, 1997-2007 165
2 Automotive Refinish Coatings Demand Relative to
Motor Vehicles in Use, 1997-2007 179
SECTION VII -- INDUSTRY STRUCTURE
1 US Paint & Coatings Market Share by Company, 2007 203
2 US Architectural & Decorative Paint Market Share
by Company, 2007 208
3 US Industrial Coatings Market Share by Company, 2007 212
