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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,500 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 $8 million annually.

    • The paint and wallpaper retailing industry consists of about 1,500 firms that employ about 40,600 workers and generate about $13 billion annually.
    • The large paint and coatings manufacturers, such as Sherwin-Williams, PPG, Kelly-Moore, and Diamond-Vogel, 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
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 12, 2022 - Major Paint Manufacturers Raises Prices
                                  • Russia’s invasion of Ukraine has increased oil price volatility, pushing paint manufacturers’ costs higher. In late April, Netherlands-based paint maker AkzoNobel said it raised its prices in the first quarter of 2022 by 17% over what they were in Q1 2021. Paint manufacturer Sherwin-Williams raised paint prices by 12% in North America on February 1.
                                  • Even as pandemic conditions wane, homeowners are expected to continue to invest in home improvements. Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.3% to $390 billion in the first quarter of 2022 compared to Q2 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15% in Q2, 19.7% in Q3, then moderate slightly to 17.3% in Q4 when spending will reach $430 billion.
                                  • Paint manufacturer PPG worked with glass, ceramics, and related materials manufacturer Corning to get EPA approval for Copper Armor paint that they say kills more than 99.9% of SARS-CoV-2, the virus that causes COVID-19. Testing the paint revealed that it has a highly durable antimicrobial activity that remained even after simulating six years of scrubbing. Research also showed that the paint killed bacteria with the same efficiency.
                                  • Total construction spending increased 0.1% in value month over month on an adjusted basis and 11.8% in value year over year on an unadjusted basis in March 2022, according to the US Census Bureau. Residential construction spending increased 1% month over month and 17.8% year over year in March. Nonresidential construction spending declined 0.8% month over month and increased 5.8% year over year in March.
                                  • The number of building permits issued for privately-owned housing units increased 0.4% month over month and rose 6.7% year over year in March 2022. Housing starts increased 0.3% month over month and 3.9% year over year in March. Housing completions decreased 4.5% month over month and fell 13% year over year in March.
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