Paint, Coating & Adhesive Manufacturers
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 1,300 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.
Industry size & Structure
The average paint, coating, and adhesive manufacturer employs 50 workers and generates $36 million annually.
- The paint, coating, and adhesive manufacturing industry consists of about 1,300 companies that employ about 65,200 workers and generate about $47 billion annually.
- The industry is highly concentrated; the top 50 companies account for 73% 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.
Industry Forecast
Paint, Coating & Adhesive Manufacturers Industry Growth
Recent Developments
Dec 4, 2024 - US Housing Market to Improve in 2025 and 2026
- After two years of high interest rates and home prices hindering home sales, the US housing market is expected to improve in 2025 and 2026, according to a November forecast by National Association of Realtors chief economist Lawrence Yun. New home sales are forecast to increase by 11% in 2025 and 8% in 2026. Existing home sales are expected to rise 9% year-over-year in 2025 and then climb 13% in 2026. Key demand drivers include a healthy labor market and population growth. The average 30-year fixed-rate mortgage over the past 52 weeks has ranged between 6.08% and 7.44%, according to Freddie Mac. Yun says he believes mortgage rates will be near the bottom end of that range in 2025 and 2026.
- Total US construction spending increased 0.4% in October 2024 compared to September, according to the US Census Bureau. Residential spending rose by 1.5%, while nonresidential spending declined 0.4%. Within the nonresidential building construction subsector, growth in October was led by a 4% rise in spending on religious projects, followed by public safety (1.3%), and office (0.7%). All other nonresidential building construction segments either declined or were flat in October from September, including healthcare (-1.1%), commercial (-1%), educational (-0.6%), and lodging (-0.4%).
- New single-family home sales declined 17.3% month-over-month and 9.4% year-over-year in October 2024, according to the US Department of Commerce. October’s new home sales were the weakest in nearly two years as hurricanes and high interest rates kept some potential buyers away, according to Reuters. Mortgage rates at the end of October rose to 6.72%, tracking the rise in 10-year Treasury yields. Concerns about inflation are leading some market observers to expect fewer Fed rate cuts in 2025. President-elect Trump’s plans to increase tariffs on imports, primarily from China, Mexico, and Canada, are also raising inflation fears. More robust home price growth may erode demand further; October's median new home sales price was $437,300, up 2.5% from September and 4.5% higher than a year earlier.
- 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.
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