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, 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

                                  Recent Developments

                                  Mar 25, 2024 - Industry to Return to Growth
                                  • The US paint and wallpaper stores industry is expected to return to the black in 2024 after posting negative growth in 2023 and solid gains during the pandemic. The industry’s year-over-year sales rose 8.7% in 2020 and 2021, then increased 10% in 2022, according to Inforum and the Interindustry Economic Research Fund, Inc. In 2023, sales growth fell to -5.4% and is expected to grow by 2% in 2024 before rising an average of 5.2% per year between 2025 and 2027, according to Inforum and the Interindustry Economic Research Fund, Inc.
                                  • The National Association of Home Builders (NAHB) expects the residential remodeling market to remain flat in 2024 compared to 2023, then grow by about 2% in 2025. Remodeling is supported by a lack of existing homes on the market, high homeowner equity, and the aging of US housing stock. However, finding skilled labor is still a challenge for remodelers.
                                  • Home builder confidence improved in March amid a lack of existing homes on the market and moderating mortgage rates that remained below 7%, 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 51 in March 2024, which marked the highest HMI reading since July 2023 and the fourth consecutive month of strengthening confidence. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The NAHB said that while lower interest rates have improved affordability and drawn more buyers back to the market, 2024 could bring supply-side headwinds, including shortages of workers, materials, and available lots.
                                  • Sales of existing US homes increased by 9.5% in February from January but were down 3.3% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "Additional housing supply is helping to satisfy market demand. Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices." Existing home sales are a demand driver for paint and wallpaper stores, as homeowners often make improvements before putting houses on the market. Home buyers typically remodel before moving in.
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