FACT SHEET FOR JONES BLAIR
Describe and analyze the US paint industry and more specifically the architectural coatings segment?
The paint industry is divided into three broad segments: Architectural coatings, Original equipment manufacturing (OEM) and Special Purpose coatings.
Industry sales for paint are slightly over 13 Billion 1997
Currently 600 paint companies about 40% lower than in1975
It is a maturing industry
Typical Paint Stores have annual sales of 400,000 with 3 brands
Typical Lumberyard Hardware store gets 10% of it's volume (65,000) from paint
Average paint purchase is $74/occasion
Average sundry purchase is $12/occasion
-60% annual sales are for interior paints which is equal to 3.35 Billion
-38% annual sales are for exterior paints
*Architectural coatings A/KA (Shelf goods)
General purpose paints, varnishes and lacquers used on residential, commercial, and institutional structures
Sold through wholesalers, retailers, DIY, paint contractors and professional painters
AC accounts for 43% of total industry dollars which is 5.59 Billion out of (13B)
It is a mature market with Long term sales growth of 1-2 % year
60% of AC sales from producers like Sherwin-Williams, Benjamin Moore, Glidden unit of imperial chemicals, PPG industries, Valspar Corporation, Grow Group, Pratt & Lambert which is equal to 3.35 Billion out of 5.59 Billion.
50% of AC sales are sold under private, controlled or store brands (sears, k-mart, Wal-mart, Home Depot) which is 2.795 or 2.8 Billion out of 5.59 Billion
36% of paint and sundry items are sold in specialty store which is 3.6 Billion took out of 10 Billi ...