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New Study of U.S. Paint & Coatings Industry 2011

 February 17, 2012
According to a new study by the consulting firm Kusumgar, Nerlfi & Growney, in 2011 U.S. consumption of coatings is projected to be 1.4 billion gallons, containing 7.8 billion pounds 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 pounds 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.

Coating demand from original equipment manufacturers (OEM) in 2011 is projected at 1.98 billion pounds 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 pounds 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.

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