Market size (2023) & major industrial customers of Paint Manufacturing industry producers.
According to IbisWorld’s US INDUSTRY (NAICS) REPORT 32551 Paint Manufacturing in the US January 2023, the total anticipated industry sales for Paint Manufacturing in 2023 are $29.7 billion (IbisWorld, 2023a). This record is an increase from the projected $27.3 billion in sales for the business in 2021, demonstrating a favorable industry trend.
Several downstream sectors, such as the construction, automotive, aerospace, and marine industries, are the leading industrial consumers of the Paint Manufacturing business and are primarily responsible for this sales volume (IbisWorld, 2023a). The construction sector is an important consumer for the paint manufacturing business for construction and maintenance purposes. The automobile sector, which requires paint and coatings for vehicle manufacture and maintenance, is another key consumer for the Paint Manufacturing business.
In addition, the aircraft sector demands coatings and paints that adhere to stringent safety and quality criteria. Also, the maritime sector employs many paints and coatings to protect vessels and offshore buildings. These industrial clients significantly affect the sales and overall success of the Paint Manufacturing business.
According to the U.S. Risk Ratings Report 32551 Paint Manufacturing in the US January 2023 by IbisWorld, the consumption for the Paint Manufacturing industry is anticipated to stay stable in the next years, backed by the continuous expansion of the construction and automotive industries (IbisWorld, 2023b). Nonetheless, the sector faces environmental rules and rising import competition. In the future, the industry’s performance will largely depend on its capacity to adapt to these problems.
Annual market growth rate & factors driving growth in the 2018-2023 period:
According to the US INDUSTRY (NAICS) REPORT 32551 Paint Manufacturing in the US January 2023 by IbisWorld, the U.S. paint manufacturing sector is anticipated to achieve total sales of $30,5 billion in total 2023. The sector services diverse customers, including construction and building companies, automobile manufacturers, and furniture manufacturers (IbisWorld, 2023). These clients are responsible for driving the industry’s sales numbers
by using paint and coating supplies to finish their projects.
IbisWorld says the U.S. paint manufacturing business enjoyed an average yearly increase of 3.4% between 2018 and 2023. The industry’s sales increased 2.2% in 2018, 2.8% in 2019, 2.7% in 2020, and 3.3% in 2021, and are anticipated to increase 3.9% in 2022 and 4.3% in 2023, according to year-over-year growth data (IbisWorld, 2023). Over this period, the yearly market annual growth for the U.S. paint manufacturing industry has been driven by several variables
First, the expanding construction sector has been a major development engine for the business. In recent years, a substantial expansion in the construction sector has led to a surge in the need for paints and coatings for new building and rehabilitation projects (IbisWorld, 2023). This trend is anticipated to continue over the next five years, with the construction industry growing by an average of 2.2% yearly. Population growth, urbanization, and a desire to replace aging infrastructure drive this expansion.
The automobile sector has also been an important growth engine for the U.S. paint production business. The automotive sector employs numerous paints and coatings for vehicle manufacture and maintenance, and the rising demand for automobiles has propelled the industry’s expansion (IbisWorld, 2023). In addition, the rising trend of personalizing automobiles with one-of-a-kind paint colors and finishes has increased the market for specialist paints and coatings.
Finally, the growing emphasis on sustainability and environmental standards has created paints and coatings with reduced VOC (volatile organic compound) content. This has created new market prospects for the sector as firms and consumers become more interested in eco-friendly and sustainable products (IbisWorld, 2023). As customers grow increasingly conscious of the influence of their purchase decisions on the environment and seek items that correspond with their beliefs, this trend is anticipated to continue.
However, the sector faces several obstacles threatening its development prospects in the next years. These obstacles include intensifying import competition and volatile raw material prices. For continuing development and success, the industry’s capacity to innovate and adapt to shifting market conditions will be vital (IbisWorld, 2023). The industry might pursue strategic alliances, such as cooperation with academic institutes, to produce competitively valuable new goods and technology.
Annual growth/contraction projections & industry trends driving growth/contraction in 2023-2028.
According to IBISWorld US INDUSTRY (NAICS) REPORT 32551 Paint Manufacturing in the US January 2023, the paint manufacturing sector is expected to increase by 3.5% annually from 2023 to 2028. The projected annual growth rates are 4.2% in 2024, 3.7% in 2025, 3.6% in 2026, 3.4% in 2027, and 3.3% in 2028. The sector is forecast to earn $36.5 billion in total sales in 2028, a considerable rise from the estimated sales of $30.5 billion in 2023. (IbisWorld, 2023).
Many developments are predicted to propel the paint production business forward. For starters, the construction industry will continue to drive demand for paint and coatings goods. The construction sector is expected to increase by 2.5% annually for the next five years, offering greater prospects for the paint production business (IbisWorld, 2023). Furthermore, rehabilitating and restoring existing structures will increase the demand for paints and coatings.
Second, as consumers become more aware of the environmental effect of their shopping decisions, demand for sustainable and environment and low VOC (volatile organic compound) paints and coatings is predicted to rise (IbisWorld, 2023). Paint and coatings firms focusing on producing environmentally friendly products will be well-positioned to capitalize on this trend. Third, the trend toward product customization and personalization will continue, creating possibilities for specialist paints and coatings that may respond to unique client preferences (IbisWorld, 2023). Customers are increasingly seeking distinctive paint colors and finishes for their cars, which is projected to fuel this trend in the automobile sector.
However, the paint manufacturing business will face several hurdles that may stymie its development prospects during the next five years. According to IBISWorld’s U.S. Risk Ratings Report 32551 Paint Manufacturing in the US January 2023, rising import competition is a serious problem for the business. Moreover, raw material price volatility and the possibility of supply chain disruptions might impact the industry’s growth path (IbisWorld, 2023). Manufacturers of paints and coatings who focus on innovation and producing new products to satisfy changing market demands will be best placed to overcome these hurdles and sustain their development in the coming years.
Barriers to entry in the Paint Manufacturing industry.
The paint and coatings factory has significant entry barriers that may prohibit new rivals from joining the market. The huge capital investment necessary to build a paint production unit is a significant barrier to entry. Establishing a new paint manufacturing facility requires considerable investment in machinery, equipment, and raw materials, which can be costly, according to the US INDUSTRY (NAICS) REPORT 32551 Paint Manufacturing in the US January 2023 by IBISWorld. This high capital required prevents new rivals from entering the market and allows established enterprises to make these expenditures an edge.
Another impediment to the entrance is the high operating expenses of a paint production unit. Paint and coatings production needs highly trained labor, which can raise labor costs. The cost of raw materials and transportation is frequently high, making it difficult for small enterprises to compete with larger corporations. According to IBISWorld’s U.S. Risk Ratings Report 32551 Paint Manufacturing in the US January 2023, established enterprises may benefit from economies of scale, which can lower per-unit manufacturing costs, boosting their competitive advantage.
Consumer approval and brand awareness are key entrance obstacles as well. Customers trust established organizations and are more inclined to remain with well-known brands (IbisWorld, 2023). New rivals would need to invest considerably in marketing and promotion to establish themselves as competent and trustworthy producers of paint and coatings supplies.
Potential macroenvironmental impacts affecting the Paint Manufacturing industry.
Many macroenvironmental variables can affect the growth and profitability of the Paint Manufacturing business, including Innovative Tub Solutions. Advances in technology can influence the paint production sector in both positive and bad ways (IbisWorld, 2023). Companies may produce novel goods, streamline manufacturing processes, and enhance efficiency as technology advances. On the other hand, companies need to catch up with technological advancements to avoid falling behind rivals and losing market share.
For example, new environmental rules or safety requirements may influence the sector. For example, the U.S. Environmental Protection Agency (EPA) has enacted several laws governing the use of hazardous chemicals in manufacturing paints and coatings, which can raise compliance costs and limit the usage of certain products.
A changing economy, like a recession, can result in decreased consumer expenditure and demand for non-essential commodities such as paint and coatings. Consumers may postpone or cancel remodeling or building projects during an economic crisis, decreasing demand for paint goods (IbisWorld, 2023). Developments in the industry might influence businesses such as Innovative Tub Solutions. For example, if a new rival joins the market or current firms merge, competition in the industry may grow, placing downward pressure on pricing and profits. However, a shift in consumer tastes for eco-friendly or sustainable products may need investments in new technology and processes for businesses to stay competitive.
Reference list
IbisWorld. (2023, January). US INDUSTRY (NAICS) REPORT 32551 Paint Manufacturing in the U.S. https://www.sdmesa.edu/library/
IbisWorld. (2023, January). U.S. Risk Ratings Report 32551 Paint Manufacturing in the U.S. https://www.sdmesa.edu/library/
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