THE U.S.

PAINT & COATINGS INDUSTRY

2015-2020
A Multiclient Study

NOW AVAILABLE

June, 2016

KUSUMGAR, NERLFI & GROWNEY, INC.

45 Willow Street
Elmwood Park, NJ 07407
Phone: 201-773-0785
Fax: 201-773-8517
www.kusumgar-nerlfi-growney.com
Green & Sustainable Coatings Lead

Led by the strong recovery in the original equipment manufacturers (OEM) segment the
coating industry has grown modestly the last several years. Coating volume in pound solids is
still off some 10% from the peak in 2007 but dollar value is up by 10%. Coating consumption in
2015 was 1.53 billion gallons containing 8.4 billion pounds of solids with a sales value of $26.6
billion. Growth is placed at a mature 1% annual rate which about matches the long term
historical trend.

Federal, state, local, and sometimes even international regulations continue to impact
coating formulation, transportation, storage, disposal, application, worker usage, abatement
technology, etc. Increasingly, consumer demands for green and sustainable coatings are
impacting coating developments.

The coating industry continues to move to more environmentally friendly products.

Water-based technology has gained share in the last twenty years rising from 47% of the dry
pounds in 1996 to a 57% share in 2015. The water-based share of architectural paints has risen
from 76% in 1996 to 83% in 2015; OEMs share has increased from 23% to 30%; and special
purpose coatings from 22% to 44%. In the OEM segment powder technology has grown from
14% of the dry weight in 1996 to 22% in 2015. Radiation-cured technology remains a small
percentage of the OEM volume but it has grown from 3% of the pounds to 5%. Figure 1
summarizes the historical change in coating technology.

Alkyds remain the largest volume solvent-based coating in volume with 27% of the
solids in 2015. They continue to lose share in solvent-based technology but new technology has
increased alkyd activity in water-based formulations. Polyurethanes and epoxies each capture 9-
10% of the solvent-based dry pounds with polyurethanes the leader in dollars with a 21% share
and epoxies behind at 10%. Acrylics comprised 7% of the solvent-based weight but their share
of dollars is 19%. In water-based technology acrylic and vinyl-acrylic based products
predominate and combined for three-quarters of the dry weight and two-thirds of the value.
Water-based alkyds, epoxies and polyurethanes are a small percentage of the volume but a
higher percentage of the value.

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THE STUDY
THE U. S. PAINT & COATINGS INDUSTRY, 2015-2020 characterizes U. S.
consumption of coatings during 2015 and estimates consumption in the year 2020. This over
1,200 page report is a comprehensive analysis of formulated products, resins, pigments and
solvents. A thorough business analysis is provided which includes profiles of leading
formulators. Significant trends, new developments, regulatory implications, supplier structure,
mergers and acquisitions, and technology are covered in detail.
Subscribers will find THE U. S. PAINT & COATINGS INDUSTRY, 2015-2020 the
definitive reference work. Current participants, and those contemplating entry, will find the
study essential in their planning process. Firms contemplating introducing new materials and
technologies will find the study particularly attractive.
THE U. S. PAINT & COATINGS INDUSTRY, 2015-2020 is based on well over 500
interviews with formulators, raw materials suppliers, equipment manufacturers, end users, and
trade associations. Additionally, available literature and web data was reviewed and analyzed.
Kusumgar, Nerlfi & Growney's extensive knowledge of the industry, gained over the last three
decades, insures an accurate and comprehensive report.

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 TABLE OF CONTENTS

Page
FOREWORD..............................................................................................................................................i
TABLE OF CONTENTS .........................................................................................................................ii
SCOPE AND EXPLANATION ON HOW TO USE THIS STUDY .................................................. vi
ABBREVIATIONS .................................................................................................................................vii
EXECUTIVE SUMMARY ...................................................................................................................... 1
Overview........................................................................................................................................ 1
Market Segment Review................................................................................................................ 2
Coating Technologies .................................................................................................................. 13
Raw Material Summary ............................................................................................................... 15
Historical Perspective .................................................................................................................. 15
Supplier Structure, Raw Materials ............................................................................................... 17
Supplier Structure, Coatings ........................................................................................................ 21
Significant Trends........................................................................................................................ 24
BUSINESS ANALYSIS .......................................................................................................................... 27
Overview...................................................................................................................................... 27
Technology Assessment............................................................................................................... 29
Supplier Structure, Coatings ........................................................................................................ 36
Supplier Profiles, Coatings .......................................................................................................... 40
Raw Materials .............................................................................................................................. 58
Government Regulations ............................................................................................................. 62
Captive Markets ........................................................................................................................... 66
Mergers and Acquisitions ............................................................................................................ 67
CLEANER COATING TECHNOLOGIES ......................................................................................... 78
100% Solids ................................................................................................................................. 83
Electrodeposition ......................................................................................................................... 89
Powder ........................................................................................................................................ 95
Radiation-Cured......................................................................................................................... 112
Solvent-Based ............................................................................................................................ 124
Water-Based............................................................................................................................... 134
APPLICATIONS AND MARKET SEGMENTATION.................................................................... 145
Original Equipment Manufacturer Coatings........................................................................ 145
Summary....................................................................................................................... 145
Aerospace...................................................................................................................... 156
Appliances .................................................................................................................... 184
Automotive Assembly .................................................................................................. 201
Automotive Parts-Metal................................................................................................ 233
Automotive Parts-Plastic .............................................................................................. 250
Coil ............................................................................................................................... 280
Electrical Insulation ...................................................................................................... 295
Electronic Conformal and Powders .............................................................................. 311
General Metal ............................................................................................................... 330
Graphic Arts (overprints).............................................................................................. 356
Machinery and Equipment............................................................................................ 381
Magnet Wire ................................................................................................................. 402
Metal Containers........................................................................................................... 416
Metal Furniture ............................................................................................................. 451
Other Land Transportation............................................................................................ 467

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 TABLE OF CONTENTS (Continued)

Packaging...................................................................................................................... 495
Pipe ............................................................................................................................... 517
Prefinished Wood ......................................................................................................... 539
Release .......................................................................................................................... 571
Wood Furniture............................................................................................................. 593
Miscellaneous OEM Coatings ...................................................................................... 614
Architectural coatings ............................................................................................................. 653
Summary....................................................................................................................... 653
Interior, Water-Based.................................................................................................... 679
Interior, Solvent-Based ................................................................................................. 689
Exterior, Water-Based .................................................................................................. 700
Exterior, Solvent-Based ................................................................................................ 708
Miscellaneous Architectural ......................................................................................... 715
Special Purpose Coatings ........................................................................................................ 723
Summary....................................................................................................................... 723
Aerosol.......................................................................................................................... 732
Automotive Refinish..................................................................................................... 744
Decks and Other Membrane Waterproofing................................................................. 767
Fire Retardant/Resistive................................................................................................ 777
Government Purchases ................................................................................................. 790
Industrial Maintenance ................................................................................................. 792
Marine........................................................................................................................... 824
Roof .............................................................................................................................. 847
Traffic ........................................................................................................................... 869
Miscellaneous Special Purpose..................................................................................... 879
RAW MATERIALS.............................................................................................................................. 916
Resins ...................................................................................................................................... 916
Acrylic .......................................................................................................................... 916
Alkyd ............................................................................................................................ 948
Amino ........................................................................................................................... 971
Bituminous.................................................................................................................... 987
Cellulosic ...................................................................................................................... 994
Epoxy .......................................................................................................................... 1003
Polyester...................................................................................................................... 1042
Polyurethane ............................................................................................................... 1068
Polyvinyl Acetates ...................................................................................................... 1110
Polyvinyl Chlorides .................................................................................................... 1121
Silicones...................................................................................................................... 1129
Miscellaneous Resins.................................................................................................. 1148
Pigments.................................................................................................................................. 1181
Solvents ................................................................................................................................... 1214

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OUR QUALIFICATIONS
Kusumgar, Nerlfi & Growney is a consulting firm specializing in market research and
business analysis for the polymer and chemical industries. Members of the firm possess over
80 years of experience analyzing the coating, ink, and adhesive & sealant industries. Kusumgar,
Nerlfi & Growney is dedicated to providing comprehensive and accurate information and insight
on technology driven markets.
The information and analyses contained in THE U.S. PAINT & COATINGS
INDUSTRY, 2015-2020 was developed by Michael Growney, Minesh Kusumgar and Steven
Nerlfi. No outside contractors were employed. Our expertise has been gained from conducting
over 40 multiclient and numerous proprietary studies.

ADDITIONAL SERVICES
Kusumgar, Nerlfi & Growney's recently completed studies include THE GLOBAL
ADHESIVES INDUSTRY, GLOBAL COATING & INK ADDITIVES and GLOBAL
PAINT & COATINGS. Interested parties are invited to contact Kusumgar, Nerlfi & Growney
for brochures and additional information. Brochures can be obtained at www.kusumgar-nerlfi-
growney.com. We welcome inquires for projects of a proprietary nature.

SUBSCRIPTION INFORMATION
THE U.S. PAINT & COATINGS INDUSTRY, 2015-2020 is available through
subscription. The price of the study is $14,000. Subscribers will receive 5 electronic copies
(PDF) of the report. Additional copies are available upon request for $750. A corporate use
license is available for $2,000. To subscribe, please complete and sign the contract on the
following page and return to Kusumgar, Nerlfi & Growney. For additional information please
call Kusumgar, Nerlfi & Growney at 201-773-0785 (FAX: 201-773-8517) or e-mail us at
[email protected].

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CONTRACT FOR THE U.S. PAINT & COATINGS INDUSTRY, 2015-2020

KUSUMGAR, NERLFI & GROWNEY, INC.

45 Willow Street
Elmwood Park, NJ 07407
Phone: 201-773-0785
Fax: 201-773-8517

Please initiate our participation in THE U.S. PAINT & COATINGS INDUSTRY,
2015-2020. We understand our subscription entitles us to five electronic copies (PDF) of the
final report.
We agree that for a period of three years from publication to:
1. Not reproduce the study, in whole or in part, by any means.
2. Restrict use of the study to our own employees.
3. Prevent the disclosure of its contents, to the best of our ability, to any other
firm or person.
We understand that we may disclose the contents of this study to any firm that we own
more than half of, or to a company that maintains more than a half interest in our firm. We may
use or disclose any information in the study which is public knowledge, in our possession before
receiving the report, or that has been obtained from third parties, but not from this study.
Kusumgar, Nerlfi & Growney will take reasonable precautions to prevent disclosure of
the contents of this study, except to subscribers, for a period of three years after it is issued.
We understand the fee for THE U.S. PAINT & COATINGS INDUSTRY, 2015-2020
is $14,000.
Kusumgar, Nerlfi & Growney will invoice us for the full amount upon acceptance of our
participation, after a countersigned copy of this contract is returned to us for our records. We
will pay this invoice within thirty days.

Accepted: Kusumgar, Nerlfi & Growney Subscriber:

Signature Signature

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 POLYMER AND CHEMICAL BUSINESS ANALYSIS
AND MARKET RESEARCH

ADDITIONAL SERVICES

THE U.S. PAINT & COATINGS INDUSTRY, 2015-2020 is Kusumgar, Nerlfi &
Growneys twenty-fifth multiclient study. Studies immediately available, or scheduled for
completion, include:

ASIAN PAINT & COATINGS, September 2008

ASIAN ADHESIVES & SEALANTS, March 2009
GLOBAL PAINT & COATINGS, October, 2009
GLOBAL COATING & INK ADDITIVES, March 2010
THE GLOBAL ADHESIVES INDUSTRY, September 2010
THE GLOBAL SEALANTS INDUSTRY, 2011-2016, October 2012
THE GLOBAL RADIATION-CURED PRODUCTS INDUSTRY, 2012-
2017, May 2013
GLOBAL PAINT & COATINGS, 2013-2018, February 2014
GLOBAL COATING & INK ADDITIVES, 2013-2018, August 2014
THE GLOBAL ADHESIVES INDUSTRY, 2014-2019, April 2015

Interested parties should contact Kusumgar, Nerlfi & Growney for subscription
information. We also welcome inquires for projects of a proprietary nature.

Kusumgar, Nerlfi & Growney, Inc.

45 Willow Street
Elmwood Park, NJ 07407
Phone: 201-773-0785
Fax: 201-773-8517
E-Mail: [email protected]
www.kusumgar-nerlfi-growney.com