Industry Analysis & Industry Trends
Demand from key markets will spur revenue growth in the coming years. Paint manufacturers are poised for recovery due to an uptick in automobile production and construction activity. However, rising input prices and competitive pressures will limit profit growth, while stricter environmental regulations will increase operating costs. Due to these trends, operators will focus on improving efficiency and increasing economies of scale... purchase to read more
Industry Report - Industry Locations Chapter
Paint production units are located in most states, reflecting the industry's historically fragmented nature. The geographic spread of the industry also indicates the high cost of freight relative to product value, a factor that serves to encourage the establishment of a number of production units close to major markets, with freight savings offsetting the forgone economies of scale. The cost of transporting prepared paint has been an important variable in explaining the existence of a relatively large number of small and medium-size paint manufacturers that operated on a state or regional basis.
The industry has a mild degree of geographic concentration, with the Great Lakes and Southeast regions accounting for about 45.3% of all establishment locations in 2013... purchase to read more