According to a study by consulting firm Kusumgar, Nerlfi & Growney, U.S. consumption of coatings in 2011 is projected to be 1.4 million gal., containing 7.8 billion lbs. of solids, worth $23 billion. The industry saw its peak consumption in 2006 and has only partially recovered from the lows of the 2008-2009 recession. In 2011, coating solids remain down 18 percent from the 2006 peak. A 1.5 percent annual rate of increase is forecast for coating solids through 2016.
Coating consumption in dollars is only three percent lower compared to 2006 because of the sharp rise in prices during 2010-2011. Coating raw material price escalation has only partially been passed along by the coating producer and margins have come under pressure.
Architectural coatings are the largest segment with some 3.9 billion lbs. of solids worth $9.1 billion expected to be consumed in 2011. New-house production remains at extremely depressed levels and home sales have yet to recover to hoped-for levels, the study says.
Coating demand from original equipment manufacturers (OEMs) in 2011 is projected at 1.98 billion lbs. of solids valued at nearly $8 billion. OEM coatings have rebounded strongly since the recession but many end-uses are still down significantly from 2006. Special purpose coating consumption in 2011 is expected to be 1.95 billion lbs. of solids with a sales value of $6 billion. Roofing, industrial maintenance and traffic paint are the large-volume outlets. The decline in commercial construction and reduced spending by state and local governments is a drag on consumption.
The study, “The U.S. Paint & Coatings Industry, 2011-2016,” is available through subscription by contacting Kusumgar, Nerlfi & Growney at 201-773-0785 or by e-mail at email@example.com. For more information, visit kusumgar-nerlfi-growney.com.