PPG Competition
Now Viewing PPG's competition in: Paint and Coating Manufacturing (primary)
Recent Developments
Home Builder Offers Recycled Paint Option - Canadian homebuilder Marshall Homes has partnered with recycled paint maker Boomerang to offer the option of recycled paint on new homes. Boomerang products are made from unused portions of recovered paints.
US Existing Home Sales Decline Continues - US existing home sales, a driver of demand for paint and coatings, fell 19.3 percent in March 2008 compared to the same period in 2007, according to the National Association of Realtors (NAR). Existing home sales have declined in seven of eight months ending in March 2008. NAR expects existing home sales to begin recovering in the second half of 2008.
US Auto Sales Declining - US auto sales, a driver of demand for paint and coatings, declined more than 3 percent in first quarter 2008 compared to the same period in 2007, according to Automotive News. Experts cite tighter credit standards and high fuel prices as key causes. The head of global sales at Ford expected the second quarter to be the most difficult of the year for automakers.
Competitive Landscape
Demand is driven by industrial production and the housing market. The profitability of individual companies depends on technological expertise and efficient production. Small companies can compete successfully with large ones because of the large number of paints and coatings used for a wide variety of applications, including decoration, water resistance, and corrosion resistance. The industry is highly automated: average annual revenue per employee is about $430,000.
Paint and Coating Manufacturing Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US paints, varnishes, and related products is forecast to grow at an annual compounded rate of 5.1 percent between 2007 and 2012.
Paint Production Growth Volatile
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to auto industry, housing
- Need strong technical expertise
- Risk: Auto and home sales in slump
Industries Where PPG Competes
- Chemicals
- Paints, Coatings & Other Finishing Product Manufacturing (primary)
- Basic and Intermediate Chemical & Petrochemical Manufacturing
- Industrial Manufacturing
- Glass & Clay Product Manufacturing
