TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION xi
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 6
Population, Demographic & Household Trends 8
Personal Consumption Expenditures 10
Manufacturing Sector Overview 12
Construction Overview 15
Building Construction Expenditures 18
Residential Construction 20
Housing Starts 22
Housing Stock 24
Residential Improvements, Maintenance & Repairs 25
Nonresidential Building Construction 27
Siding Demand 28
Wood & Fiber Cement Siding 31
Environmental & Regulatory Considerations 34
Volatile Organic Compounds 36
Pigments 37
Solid Waste Recycling 37
Paint Industry Regulations 38
World Paints & Coatings Demand 40
III. RAW MATERIALS 46
Overview 46
Resins & Binders 48
Solvents 50
Pigments & Dyes 53
Fillers & Extenders 55
Additives, Modifiers & Other Raw Materials 57
IV. SUPPLY & DEMAND OVERVIEW 61
Overview 61
Demand by Type & Formulation 63
Foreign Trade 67
Foreign Trade Forecast - Volume 69
Foreign Trade Forecast - Dollars 71
Imports by Source 72
Exports by Destination 74
Pricing Trends 76
Historic Growth & Volatility in Paints & Coatings Demand 79
V. ARCHITECTURAL PAINTS 81
Overview 81
Volatility in Architectural Paints 82
Demand by Market, End User & Formulation 84
Residential Construction Markets 87
New Residential Construction Markets 89
Residential Repair & Improvement Markets 92
Nonresidential Construction Markets 95
Shipments by Type & Formulation 97
Water-based Architectural Paints 99
Solvent-based Architectural Paints 101
Interior Architectural Paints 104
Exterior Architectural Paints 106
VI. DURABLE EQUIPMENT COATINGS 109
Overview 109
Demand by Formulation 111
Volatility in Durable Equipment Coatings 114
Furniture & Fixture Markets 116
Furniture & Fixture Shipments 117
Furniture & Fixture Coatings 118
Suppliers of Furniture & Fixture Coatings 120
Motor Vehicles 121
Motor Vehicle Industry Overview 122
Motor Vehicle Coatings 125
OEM Motor Vehicle Coatings 127
Suppliers of OEM Motor Vehicle Coatings 130
Motor Vehicle Refinish Coatings 133
Suppliers of Motor Vehicle Refinish Coatings 136
Metal Building Components 139
Nonresidential Fixed Investment 140
Metal Building Component Coatings 141
Suppliers of Metal Building Product Coatings 143
Industrial Machinery & Equipment 143
Industrial Machinery & Equipment Overview 144
Industrial Machinery & Equipment Coatings 147
Suppliers of Industrial Equipment Coatings 149
Appliances 150
Appliance Shipments 150
Appliance Coatings 152
Suppliers of Appliance Coatings 155
Aerospace & Other Transportation Equipment 156
Aerospace & Other Transportation Equipment Shipments 156
Aerospace & Other Transportation Equipment Coatings 158
Suppliers of Aerospace Coatings 161
Lawn & Garden Equipment 163
Lawn & Garden Equipment Shipments 163
Lawn & Garden Equipment Coatings 164
Other Durable Equipment Markets 166
VII. MAINTENANCE & SPECIAL PURPOSE COATINGS 169
Overview 169
Demand by Formulation 171
Volatility in Maintenance & Special Purpose Coatings 173
Packaging Markets 175
Packaging Industry Overview 176
Packaging Coatings 178
Rigid Containers & Closures 179
Flexible & Paper Packaging Coatings 181
Suppliers of Packaging Coatings 182
Industrial Maintenance 185
Nonresidential Improvements & Repair Expenditures 186
Industrial Maintenance Coatings 187
Suppliers of Industrial Maintenance Coatings 191
Traffic Marking Paint Markets 193
Highway & Street Expenditures 194
Traffic Marking Paints 195
Suppliers of Traffic Marking Paint 197
Marine Markets 198
Marine Equipment Outlook 199
Marine Coatings 201
Suppliers of Marine Coatings 204
Aerosol & Other Maintenance & Specialty Coating Markets 206
VIII. INDUSTRY STRUCTURE 208
General 208
Industry Concentration 210
Architectural & Decorative Paints 214
Industrial Coatings 218
Acquisitions, Divestitures & Industry Restructuring 219
Joint Ventures & Other Cooperative Agreements 223
Distribution 227
Competitive Strategies 228
Company Profiles 230
Akzo Nobel NV 231
Ameron International Corporation 235
Amteco Incorporated 236
BASF AG 237
Behr Process Corporation, see Masco Corporation
Benjamin Moore & Company, see Berkshire Hathaway
Berkshire Hathaway Incorporated 240
Bondo Corporation, see RPM Incorporated
Bruder (MA) & Sons Incorporated 242
Carboline Company, see RPM Incorporated
CenterLine Industries, see Lafarge SA
Chemical Coatings Incorporated, see RPM Incorporated
Diamond Vogel Paint Company 244
Dryvit Systems Incorporated, see RPM Incorporated
Dunn-Edwards Corporation 246
DuPont (EI) de Nemours 247
Duron Incorporated 249
EFTEC AG, see Fuller (HB) Company
Euclid Chemical Company, see RPM Incorporated
Federal Flooring Incorporated, see Valspar Corporation
Ferro Corporation 251
Flecto Company Incorporated, see RPM Incorporated
Foster Products Corporation, see Fuller (HB) Company
Frazee Industries Incorporated, see Professional Paint
Fuller (HB) Company 253
Glidden Company, see Imperial Chemical Industries plc
House of Kolor, see Valspar Corporation
Imperial Chemical Industries plc 255
Johnson Paints, see Sherwin-Williams Company
Jones-Blair Company 257
Keeler & Long Incorporated, see PPG Industries
Kelly-Moore Paint Company Incorporated 258
Kop-Coat Incorporated, see RPM Incorporated
Kwal-Howells Incorporated, see Professional Paint
Lafarge SA 260
Lilly Industries Incorporated, see Valspar Corporation
Linear Dynamics Incorporated, see Lafarge SA
MAB Paints, see Bruder (MA) & Sons Incorporated
Masco Corporation 262
Masterchem Industries, see Masco Corporation
Mautz Paint Company, see Sherwin-Williams Company
Mays+Red Spot Coatings, see Red Spot Paint & Varnish
Mohawk Finishing Products, see RPM Incorporated
Monarch Paint Company, see PPG Industries
Nason Automotive Finishes, see DuPont (EI) de Nemours
NOF Corporation 264
Paint America, see Bruder (MA) & Sons, Diamond Vogel
Paint Company, Dunn-Edwards Corporation, and
Kelly-Moore Paint Company
Parker Paint Manufacturing Company, see Professional Paint
Plasite Protective Coatings, see RPM Incorporated
Plasti-Kote Company, see Valspar Corporation
Ponderosa Paint Manufacturing, see Kelly-Moore
Paint Company
Porter Paints, see PPG Industries Incorporated
PPG Industries Incorporated 266
PRC-DeSoto International, see PPG Industries
Professional Paint Incorporated 271
Red Spot Paint & Varnish Company Incorporated 273
Rohm and Haas Company 274
RPM Incorporated 275
Rust-Oleum Corporation, see RPM Incorporated
Seibert-Oxidermo, see Red Spot Paint & Varnish Company
Sherwin-Williams Company 280
Sophir-Morris Paint, see Professional Paint Incorporated
Spraylat Corporation 285
Stellar Paint Company, see Professional Paint
Incorporated
StonCor, see RPM Incorporated
Stonhard Incorporated, see RPM Incorporated
TCI Incorporated, see RPM Incorporated
Tennant Company 287
3M Company 288
Tremco, see RPM Incorporated
Valspar Corporation 290
Virginia Paint Company, see Berkshire Hathaway
Westfield Coatings, see RPM Incorporated
Yenkin-Majestic Paint Corporation 293
Zinsser Company Incorporated, see RPM Incorporated
Other Companies Mentioned in Study 295
LIST OF TABLES
TABLE NUMBER PAGE
SECTION I
Summary Table 3
SECTION II
1 Macroeconomic Overview 7
2 Population, Demographic & Household Trends 10
3 Personal Consumption Expenditures 12
4 Manufacturers Shipments 15
5 Construction Overview 18
6 Building Construction Expenditures 20
7 Residential Construction Expenditures 22
8 Private Housing Overview 24
9 Residential Improvements, Maintenance & Repairs 26
10 Nonresidential Building Construction Expenditures 28
11 Siding Demand by Material 31
12 Paintable Siding Demand by Type & Market 34
13 World Paints & Coatings Demand 44
SECTION III
1 Raw Material Demand in Paints & Coatings 47
2 Resin & Binder Demand in Paints & Coatings 50
3 Solvent Demand in Paints & Coatings 53
4 Pigment & Dye Demand in Paints & Coatings 55
5 Filler & Extender Demand in Paints & Coatings 57
6 Additives, Modifiers & Other Raw Materials Demand in
Paints & Coatings 60
SECTION IV
1 Supply & Demand for Paints & Coatings 63
2 Paints & Coatings Demand by Product & Type 67
3 US Foreign Trade in Paints & Coatings - Volume 70
4 US Foreign Trade in Paints & Coatings - Value 72
5 Paints & Coatings Imports by Source, 1996-2001 74
6 Paints & Coatings Exports by Destination, 1996-2001 76
7 Pricing Trends in the US Paints & Coatings Industry 78
8 Market Volatility in Paints & Coatings Demand (Volume),
1992-2001 80
SECTION V
1 Architectural Paints Supply & Demand 82
2 Market Volatility in Architectural Paints Demand (Volume),
1992-2001 83
3 Architectural Paints Demand by Market, End User
& Formulation 87
4 Residential Construction Markets for Architectural Paints 89
5 New Residential Construction Markets for Architectural
Paints 92
6 Residential Repair & Remodeling Markets for
Architectural Paints 95
7 Nonresidential Building Construction Markets for
Architectural Paints 97
8 Architectural Paint Shipments by Type & Application 99
9 Water-based Architectural Paints Shipments 101
10 Solvent-based Architectural Paint Shipments 104
11 Interior Architectural Paint Shipments 106
12 Exterior Architectural Paints Shipments 108
SECTION VI
1 Durable Equipment Coatings Supply & Demand 111
2 Durable Equipment Coatings Demand by Formulation 113
3 Market Volatility in Durable Equipment Coatings Demand
(Volume), 1992-2001 115
4 Furniture Shipments 118
5 Furniture & Fixture Coating Supply & Demand 120
6 Overview of the US Motor Vehicle Industry 124
7 Motor Vehicle Coatings Supply & Demand 127
8 OEM Motor Vehicle Coatings Supply & Demand 129
9 Motor Vehicle Refinish Coatings Supply & Demand 135
10 Nonresidential Fixed Investment on Structures 141
11 Metal Building Component Coatings Supply & Demand 143
12 Industrial Machinery & Equipment Shipments 147
13 Industrial Machinery & Equipment Coatings Supply & Demand 149
14 Appliance Shipments by Type 152
15 Appliance Coatings Supply & Demand 155
16 Aerospace & Other Transportation Equipment Shipments 158
17 Aerospace & Other Transportation Equipment Coatings
Supply & Demand 161
18 Lawn & Garden Equipment Shipments 164
19 Lawn & Garden Equipment Coatings Supply & Demand 166
20 Other Durable Equipment Coatings Supply & Demand 168
SECTION VII
1 Maintenance & Special Purpose Coatings Supply & Demand 171
2 Maintenance & Special Purpose Coatings Demand
by Formulation 173
3 Market Volatility in Maintenance & Special Purpose
Coatings Demand (Volume), 1992-2001 174
4 Packaging Industry Overview 177
5 Packaging Coatings Supply & Demand 179
6 Rigid Container & Closure Coatings Supply & Demand 181
7 Flexible & Paper Packaging Coatings Supply & Demand 182
8 Nonresidential Improvements, Maintenance &
Repair Expenditures 187
9 Industrial Maintenance Coatings Supply & Demand 191
10 Highway & Street Expenditures 195
11 Traffic Marking Paints Supply & Demand 197
12 Marine Equipment Shipments 201
13 Marine & Offshore Coatings Supply & Demand 204
14 Aerosol & Other Maintenance & Specialty Coatings
Supply & Demand 207
SECTION VIII
1 Concentration in the US Paint & Coating Industry
by Company, 2001 213
2 Concentration in the US Architectural & Decorative
Paint Industry by Company, 2001 217
3 Concentration in the US Industrial Coatings Industry
by Company, 2001 219
4 Selected Acquisitions & Divestitures in the US Paints
& Coatings Industry, 2000-2002 222
5 Selected Cooperative Agreements in the US Paints &
Coatings Industry 225
LIST OF CHARTS
CHART NUMBER PAGE
SECTION II
1 US Housing Stock by Year of Construction, as of 2001 25
2 World Paints & Coatings Demand by Region, 2001 45
SECTION IV
1 Market Volatility in Paints & Coatings Demand (Volume),
1992-2001 80
SECTION V
1 Market Volatility in Architectural Paint Demand (Volume),
1992-2001 84
SECTION VI
1 Market Volatility in Durable Equipment Coatings Demand
(Volume), 1992-2001 116
2 OEM Motor Vehicle Coatings Demand Relative to
US Motor Vehicle Production, 1992-2001 130
3 Concentration in US OEM Motor Vehicle Coatings
by Company, 2001 132
4 Refinish Motor Vehicle Coatings Demand Relative to
Motor Vehicles in Use, 1992-2001 136
5 Concentration in US Motor Vehicle Refinish Coatings
by Company, 2001 139
SECTION VII
1 Market Volatility in Maintenance & Special Purpose
Coatings Demand (Volume), 1992-2001 175
2 Concentration in US Packaging Coatings by Company, 2001 185
