Paint, Coating & Adhesive Manufacturers

The 1,300 paint, coating, and adhesive manufacturers in the US mix pigments, solvents, and binders into paints and other coatings; produce allied paint products, such as putties, removers, and cleaners; and produce adhesives, glues, and caulking compounds. Large companies may manufacture other construction-related products. Some large firms are vertically integrated and operate retail locations.

Regulation Of Hazardous Materials And Waste

Because the production of paint, coatings, and adhesives involves certain chemicals that are considered hazardous, manufacturers are subject to a wide range of laws and regulations dealing with environmental, health and safety issues.

Variability In Raw Materials Costs

The cost of raw materials used in paint, coating and adhesive production varies according to global market conditions.

Aug 2, 2026 - Construction Spending to Remain Weak

• US construction and engineering spending is expected to decline 1% in 2026 after remaining flat in 2025, according to FMI's third-quarter 2026 North American Engineering and Construction Outlook. Office construction is projected to grow 2%, with a 21% increase in data center spending offsetting continued weakness in traditional office construction. Amusement and recreation (+2%), transportation (+1%), and communication (+3%) also remain stable. Several building segments are expected to decline, including lodging (-9%), commercial (-5%), health care (-0.2%), education (-1%), and public safety (-4%). Manufacturing construction is forecast to fall 17% as semiconductor fabs and battery plants move beyond their most spending-intensive phases. Residential construction remains constrained by elevated mortgage rates and affordability pressures. Single-family spending is projected to drop 4%, while multifamily spending declines 1% as rents remain soft and concessions limit new development. Residential improvements are expected to rise by 5%, supported by home equity financing and inflation in renovation costs.
• The total value of nonresidential and residential construction starts decreased in June compared to May, according to Dodge Construction Network. Residential starts fell 2.2% month-over-month in June; single-family starts dropped 3.4%, while multifamily starts were down by 0.4%. Nonresidential building starts fell 9.1% in June, as a 1.2% rise in commercial starts and a 2.5% increase in institutional projects were not enough to offset the sharp declines in manufacturing (-62.9%) and healthcare (-29.9%) starts. Spending for offices and data centers was down 3.7% in June compared to May. Dodge Construction Network Director of Economic Research said, "After strong megaproject activity in May, construction starts came back down to earth throughout the month of June. Residential and institutional construction remain weak, while commercial, industrial and nonbuilding construction continue to show strong year-to-date growth."
• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• US housing starts rose 19% month-over-month and increased 3.5% year-over-year in June, according to the US Census Bureau. The rise in starts was led by a 76.3% increase in multifamily project starts involving five or more units, a segment of the residential construction sector that can be volatile month to month. Multifamily starts were up 19.3% compared to June 2025. Single-family starts in June were down 0.2% from May and 3.2% compared to a year earlier. High mortgage rates and a glut of unsold new homes continue to put downward pressure on single-family building. High costs for land and materials are also hindering building activity. Building permits for single-family slipped 2.4% in June from May, marking the lowest level in 10 months. June's multifamily permits dropped 4.9% from the month before.

Industry size & Structure

The average paint, coating, and adhesive manufacturer employs 50 workers and generates $39 million annually.

• The paint, coating, and adhesive manufacturing industry consists of about 1,300 companies that employ about 65,100 workers and generate about $51.2 billion annually.
• The industry is highly concentrated; the top 50 companies account for 81% of industry revenue.
• Some large firms are vertically integrated and operate retail locations.
• Large companies include PPG Industries, RPM International, Valspar, and HB Fuller. Large companies may generate a significant percentage of sales in foreign markets.