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US coatings industry will continue to grow in 2018
Entering 2018, the US coatings industry is expected to continue its long-term growth. What is the current market situation?
As the United States continues to recover from the collapse of the real estate market in 2007, the paint and coatings market is expected to continue to grow as the construction industry recovers, with both sales and sales increasing. In terms of OEM coatings, strong domestic demand and improved export opportunities brought about by the depreciation of the US dollar will push up demand for US durable and industrial coatings.
According to the 9th edition of the ACA Industry Market Analysis Report (2014-2019), the market size of the US paint and coatings industry is expected to reach US$26.4 billion in 2020, and the compound annual growth rate in US dollars is expected to reach 3.2%. In 2016, the construction industry accounted for 60% of sales in the US coatings industry and 49% of sales, and remains the largest customer in the US coatings industry. The report also predicts that the US coatings industry's compound annual growth rate will reach 3.5% (sales) and 3.3% (sales) in 2015-2020, driven by the continued strength of the construction industry, especially in the residential sector. In comparison, sales of OEM coatings and sales increased by only 2.3% and 2.0%, respectively, while special-purpose topcoats increased by only 1.1% and 0.4%, respectively.
OEM coatings: continuous growth
Overall, the prospects for OEM coatings are also more optimistic. Traditionally, the most critical sector in the OEM coatings category is automotive manufacturing, which continues to strengthen. Since the end of the recession, consumer demand for air travel and global airlines to upgrade or replace fleets has been strong, and other manufacturing end-use markets such as aerospace have recovered.
Increasing operational efficiency is a key factor driving OEM coating end users to use OEM coatings. OEM customers value the benefits of improving the productivity of their painting operations, such as wet painting, reduced labor and shorter cycle times. The operation of OEM factories is more streamlined than ever before, which means that productivity and cost are important factors to consider. Coatings that increase efficiency will gain an advantage in the market. These features include fewer coatings, thinner coatings, or faster drying and curing, energy savings (eg, lower energy for drying and curing), and versatility (eg, combining aesthetic and antimicrobial properties) , with protection and fire protection, etc.).