This is marketing research on the Coatings industry and can include information on the background, market structure, definitions, competitors, trends and developments of coatings and is related to other topics such as protectives, layering and painting.

Table of Contents

Table of Contents

1 Background 
2 Market Structure 
3 Industry Definitions 
4 Market Metrics 
5 Industry Players 
6 Sources

Background

Coatings are substances which are added or applied to the surface of something to protect or change its appearance. The surface onto which the coating is applied is generally known as a substrate. Coatings are used for purposes such as water-proofing or insulation or even as a decoration such as adding different coloration to an object's surface. Generally, a coating process is intended to alter the physical properties or appearance of an object and may make the object's usage safer. An example is protective paint coatings on an automobile or polymer coatings on fabrics to protect them from fire or sunlight.

Coating manufacturing and processing is a large global industry and its growth has been accelerated as global manufacturing has been increasingly shifted to emerging markets such as China and other Asian countries.

Market Structure

In the United States, the coatings industry includes almost 1500 processing establishments. Annual shipments in the U.S. in 2004 were approximately 1,560 billion gallons (6 billion liters) with a value of about US $19.5 billion. Coatings were used in mostly the following sub-industries: autos, machinery, metal equipment and fixtures, metal and wood furniture, containers, electrical and electronic, semiconductor and coil and sheet metals.

Coatings used by Original Equipment Manufacturer or (OEM) products manufacturers came to approximately 425 million gallons of that total during 2004.

Industry Definitions

• Capacity - The maximum quantity of a product that be produced in a plant in one day if operating for 24 hours. Includes the capacity of idle plants until they are reported to be destroyed, dismantled, or abandoned.

• Consumption - Materials used in producing or processing a product or otherwise removing the product from the inventory.

• Exports - Includes all types of products shipped to foreign countries, or to agents or exporters for reshipment to foreign countries.

• Gross shipments - The quantity or value of physical shipments from domestic establishments of all products sold, transferred to other establishments of the same company, or shipped on consignment, whether for domestic or export sale or use. Shipments of products purchased for resale are omitted. Shipments of products made under toll arrangements are included.

• Interplant transfers - Shipments to other domestic plants within a company for further assembly, fabrication, or manufacture.

• Inventories - The quantity or value of finished goods, work in progress, and materials on hand, taken together are called inventories.

• Net receipts - Derived by subtracting the materials delivered at the end of the previous month from the sum of materials used during the current month.

• Production - The total volume of products produced, including: products sold; products transferred or to inventory after adjustments for breakage, shrinkage, and obsolescence, plus any other inventory adjustment; and products that undergo further manufacture at same establishment.

Market Metrics

     2006

• Manufacturers' estimated shipments of paint and allied products totalled US $20.8 billion, an increase of 4.5 percent over 2005 shipments of US $19.9 billion.

• Architectural coatings rose 5.2 percent to US $8.9 billion, up from US $8.5 billion.

• OEM coatings shipments totaled US $6.1 billion, slightly higher than US $6.03 billion in 2005.

• Special purpose coatings rose 7.7 percent to US $4.4 billion, an increase of 9.5% over 2005 (US $4.02B).

• Miscellaneous paint coating products rose 5.4 percent to US $1.48 billion, slightly higher than the 2005 total of US $1.407 billion.

• 50% of coatings were used in the application of organic coatings including varnishes and paints

• 22% of coatings involved galvanizing processes

• 21% of coatings involved metal coatings and related activities

• 6% of coatings involved etching or engraving processes

The US Department of Commerce estimated the following coatings output by OEMs in the U.S.:

PRODUCT COATINGS REPORT - OEM QUARTERLY 1999-2005 (IN THOUSANDS OF US DOLLARS)

                  1999(r)       2000(r)     2001(r)    2002(r)    2003(r)    2004(r)   2005(p)

March (Q1)      1,560,167     1,609,016   1,409,145  1,387,224  1,499,663  1,503,349   1,469,565
June (Q2)       1,596,052     1,641,196   1,465,511  1,525,946	1,544,653  1,533,417   1,704,695
September (Q3)  1,514,652     1,509,900   1,377,581  1,495,427	1,297,508  1,487,414   1,687,648
December (Q4)   1,537,371     1,389,108   1,308,702  1,435,610	1,219,657  1,413,043   1,603,266
r - revised
p - preliminary

Industry Players

Top 10 companies in the coatings industry in 2007

    Company                     Revenues (in USD Billion) 


Akzo Nobel (The Netherlands)            $7.8 

Henkel (Germany)                        $6.9 

ICI Group (UK)                          $6.4 

Sherwin-Williams (USA)                  $6.3 

PPG Industries (USA)                    $6.3 

DuPont (USA)                            $4.1 

RPM (USA)                               $3.0 	

Valspar (USA)                           $2.9  
	
BASF Coatings (Germany)                 $2.9 	

SigmaKalon (The Netherlands)            $2.4

Sources

• US Census Bureau
• US Department of Commerce, Bureau of the Census
• Company websites