US coatings market on the upswing
The U.S. coatings industry enters 2018 anticipating that its long period of growth will continue. How is the situation on the market currently?
As the United States continues to recover from the housing market collapse in 2007, the paint and coatings market is expected to grow in tandem with the construction sector, with increases in both volume and value. On the OEM side, the combination of strong domestic demand and improved export opportunities resulting from the fall of value of the dollar will fuel demand for increased U.S. durable goods and industrial coatings.
According to the ACA Industry Market Analysis, 9th Edition (2014-2019), the U.S. paint and coatings industry is expected to reach a value of $26.4 billion in 2020. Compound annual dollar growth is forecast to be 3.2 percent, resulting in a 2020 industry value of $26.4 billion. At 60 percent of volume and 49 percent of value in 2016, the architectural segment continues to be the largest component of U.S. coatings demand. The report also forecasts a 2015-20 Compound Annual Growth Rate of 3.5 percent (value) and 3.3 percent (volume) in that segment, aided by continued strength in construction, particularly residential. This compares with 2.3 percent and 2.0 percent growth in value and volume, respectively, for OEM, and 1.1 percent (value) and 0.4 percent (volume) for Special Purpose finishes.
OEM coatings: continuous growth
The outlook for OEM coatings is generally upbeat, too. Traditionally, the most critical segment of the OEM coatings category has been motor vehicle manufacturing, which shows continued strength. Other manufacturing end-use markets, such as aerospace, have recovered since the end of the recession, reflecting strong demand for air travel, and the upgrading or replacement of fleets by air carriers around the world.
A key driver for OEM coatings end users is operational efficiency. Things that improve productivity at customers’ painting operations, such as wet-on-wet applications, reduced labor, faster cycle times, etc., are valued by OEM customers. OEMs are running leaner operations than ever before, meaning that productivity and cost are huge factors. Coatings offering increased efficiency are advantaged in this market. These features – assuming equivalent performance – include fewer coats, thinner films, or both faster drying and curing, energy savings (e.g., drying/curing with lower energy), and multi-functionality (e.g., combining aesthetic appeal and anti-microbial properties, protective and fire-resistant, etc.).
More information is also available in the American Coatings Association’s (ACA) Industry Market Analysis, 9th Edition (2014-2019). Attending the American Coatings SHOW in Indianapolis in April? This report is part of a comprehensive preview magazine with all you need to know beforehand and exclusive expert interviews.
