Paint and Wallpaper Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,400 firms in the US sell paint, wallpaper, and related supplies to consumers and commercial contractors. Major product categories include architectural paint; painting equipment; coatings; painting supplies; and wallpaper.
Sensitivity to Remodeling, Construction, and Economic Trends
Demand for architectural paint and wallpaper is dependent on the health of the remodeling and construction industry, which is cyclical and influenced by economic conditions.
Seasonal Fluctuations in Demand
The paint market is seasonal and subject to uneven demand throughout the year.
Industry size & Structure
The average paint and wallpaper retailing company employs less than 10 workers and generates $12 million annually.
- The paint and wallpaper retailing industry consists of about 1,400 firms that employ about 50,400 workers and generate about $16.6 billion annually.
- The large paint and coatings manufacturers, such as Sherwin-Williams, PPG, and Benjamin Moore, dominate the paint and wallpaper retail landscape through company-owned locations. Sherwin-Williams is also one of the largest distributors of wallpaper in the US.
- About 36% of firms generate less than $500,000 annually; 25% generate between $500,000 and $1 million annually.
- About 83% of firms employ fewer than ten workers.
- Franchises account for a small (about 2.5%) of the industry.
Industry Forecast
Paint and Wallpaper Stores Industry Growth
Recent Developments
Nov 25, 2024 - Home Equity to Boost Home Improvement Spending in 2025
- Home improvement industry observers expect remodeling spending to rise in 2025 as more homeowners borrow against the rising equity they have in their homes, according to The Wall Street Journal. After a significant uptick during the pandemic, as people were stuck at home, remodeling spending has been lackluster. Higher interest rates also made it more expensive to finance major renovations. In September 2024, the Federal Reserve cut interest rates for the first time in four years. Rates are expected to continue dropping, which could prompt many homeowners to leverage the value locked in their homes and take out loans for improvements.
- The number of building permits issued for single-family, privately-owned housing units increased 0.5% month-over-month but declined 1.8% year-over-year in October 2024. Single-family housing starts fell 6.9% month-over-month and decreased 0.5% year-over-year in October. Single-family housing completions dropped 1.4% month-over-month and fell 0.2% year-over-year in October. The decline in homebuilding activity was partly due to project disruptions from Hurricane Helene in late September and Milton in October, according to Reuters. High interest rates and a lack of affordability also continue to hinder the US housing market.
- Home remodeling spending is expected to resume stronger growth by the middle of 2025, according to the Leading Indicator of Remodeling Activity (LIRA) report released in October by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to decrease 2.1% to $469 billion in the fourth quarter of 2024 compared to Q4 2023. In the first quarter of 2025, remodeling spending will drop 2.1% from Q1 2024 to $454 billion. Spending will then rise to $473 billion in Q2 2025, up 0.6% from Q2 2024. In the third quarter of 2025, year-over-year spending is forecast to increase by 1.2% to $477 billion. The Joint Center expects improvements to be supported by improving existing home sales and higher home values, which will boost spending for necessary replacement and discretionary remodeling projects.
- Home builder confidence in the single-family market increased in November, marking the third consecutive month of sentiment improvement, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose three points to 46 in November 2024. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The NAHB said builders are generally upbeat about the election outcome, and future sales expectations improved in November. The HMI survey also showed that 31% of builders reduced home prices in November, and the average price reduction fell slightly to 5% from 6% in October.
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