Protective Coatings to 2009

SUMMARY

US demand to grow 4.8% per year through 2009

Demand for protective coatings in the US is forecast to rise 4.8 percent per year to $4.8 billion in 2009. In general, higher value coatings -- especially those that provide multiple functions, exhibit favorable environmental profiles or are used in niche applications -- will offer the best opportunities.

Products that will post the most rapid gains include fire-resistant, anti-graffiti and conformal coatings, although research and development efforts will provide opportunities for most products to some degree. Fire-resistant coatings, for example, will experience greater use due to the introduction of improved formulations that allow coated metal to be used in a greater number of building designs, as well as greater safety concerns regarding the structural integrity of metal in fire situations.

In corrosion control, coil coating formulations that provide not only corrosion resistance, but also antimicrobial properties or textures will see greater use.

Machinery, aerospace, electronics production to drive durables sector

Protective coatings are indispensable in the production of various durable goods, particularly those with metal substrates. As such, protective coating demand will benefit from an acceleration in durable goods shipments, as the manufacturing sector continues to recover from the recessionary 2001 period. The most favorable opportunities will arise in industrial machinery and equipment, aerospace equipment and electronics, although the potential displacement of coated metal by alternative materials (particularly plastics) in certain durable goods will offset some of these gains.

Improvements, new construction to benefit maintenance end uses

In industrial maintenance end uses, protective coating demand will benefit as US firms invest in the improvement and maintenance of existing facilities and equipment. In addition, demand will also be promoted by a significant acceleration in industrial construction expenditures, where spending is rebounding from declines during the 1999-2004 period. The introduction of more efficient coating formulations during the 1990s will limit growth somewhat, as the use of these formulations extends the period between regular maintenance.

Bridges, decks, fences to support gains in construction market

In construction end uses, protective coating demand will be spurred by the aging of the bridge inventory and relatively frequent maintenance requirements for the large installed base of decking and fencing. Limiting gains will be a gradual shift to materials that require less maintenance such as woodplastic composites, vinyl and polyethylene.

Study coverage

Protective Coatings is a new Freedonia industry study, provides historical US demand data (1994, 1999, 2004) plus forecasts to 2009 and 2014 by product and end use. This study also evaluates US market share data and profiles 35 industry competitors.

TABLE OF CONTENTS

INTRODUCTION

I. EXECUTIVE SUMMARY

II. MARKET ENVIRONMENT

• General
• Macroeconomic Outlook
• Demographic & Household Trends
• Consumer Income & Spending
• Manufacturing Outlook
• Construction Overview
• Motor Vehicle Overview
• Paints & Coatings Industry Outlook
• Historical Market Trends
• Pricing Trends
• Competitive Product Trends
  • Corrosion Resistant Metals
  • Plastics
  • Corrosion Inhibitors
• Environmental & Regulatory Issues
  • Volatile Organic Compounds
  • Heavy Metals
  • Solid Waste Recycling
• International Activity & Foreign Trade

III. PRODUCTS

• General
• Corrosion Control Coatings
  • Formulation
  • Organic Corrosion Control Coatings
  • Inorganic Corrosion Control Coatings
  • Application Technology
  • Galvanizing & Electroplating
  • Coil Coating
  • Electrodeposition
  • Other Application Technologies
  • Anti-Wear Coatings
  • Waterproofing Coatings
• Antimicrobial Coatings
• Fire Resistant Coatings
• Conformal Coatings

IV. FORMULATIONS

• General
• Organic
  • Epoxy
  • Alkyd
  • Polyurethane
  • Acrylic
  • Polyester
  • Other Organic
• Inorganic
  • Nonmetallic
  • Metallic

V. MARKETS

• General
• Product Manufacturing
  • Transportation Equipment
  • Motor Vehicles
  • Aerospace Equipment
  • Other Transportation Equipment
  • Industrial Machinery & Equipment
  • Metal Building Components
  • Containers & Closures
  • Electronics
  • Furniture
  • Appliances
  • Other Product Manufacturing
• Construction
• Industrial Maintenance
  • Water/Wastewater
  • Pulp & Paper
  • Chemical
  • Other Industrial Maintenance
• Other
  • Aerospace Refinish
  • Marine Equipment & Structures
  • Motor Vehicle Refinish
  • Railroad Refinishing
  • All Other

VI. INDUSTRY STRUCTURE

• General
• Market Share
  • PPG Industries
  • DuPont
  • Sherwin-Williams
  • Valspar
  • Akzo Nobel
  • RPM
  • BASF
• Competitive Strategies
• Mergers & Acquisitions
• Cooperative Agreements
• Marketing & Distribution
• Research & Development

Company Profiles

• Adsil Incorporated
• Akzo Nobel NV
• Amercoat Mexicana SA de CV, see Ameron International
• Corporation and Comercial Mexicana de Pinturas
• Ameron International Corporation
• Arch Chemicals Incorporated
• Balzers Incorporated, see Unaxis Holding
• BASF AG
• Behr Process Corporation, see Masco Corporation
• Cabot (Samuel) Incorporated
• Cafco International
• Carboline Company, see RPM International
• Chemical Coatings Incorporated, see RPM International
• Chemprobe Coating Systems LP, see Tnemec Company
• Comercial Mexicana de Pinturas SA de CV
• COMEX, see Comercial Mexicana de Pinturas
• Daubert Industries Incorporated
• Diamond Vogel Paint Company Incorporated
• Dow Corning Corporation
• Duckback Products Incorporated, see Comercial Mexicana de Pinturas
• DuPont (EI) de Nemours
• Duron Incorporated, see Sherwin-Williams Company
• ECP Incorporated, see Daubert Industries Incorporated
• Euclid Chemical Company, see RPM International
• Frazee Industries Incorporated, see Comercial Mexicana de Pinturas
• General Paint Corporation, see Comercial
• Mexicana de Pinturas
• Grace (WR) & Company
• Hempel A/S
• ICI Paints North America, see Imperial Chemical Industries
• Imperial Chemical Industries plc
• International Coatings Limited, see Akzo Nobel NV
• Jotun A/S
• Kelly-Moore Paint Company Incorporated
• Kop-Coat Incorporated, see RPM International
• Kwal-Howells Incorporated, see Comercial
• Mexicana de Pinturas
• MacDermid Incorporated
• Magni Group Incorporated
• Masco Corporation
• Masterchem Industries Incorporated, see Masco Parker Paint Manufacturing Company, see Comercial
• Mexicana de Pinturas
• PPG Industries Incorporated
• PRC-DeSoto International Incorporated, see PPG Industries
• Professional Paint Incorporated, see Comercial Mexicana de Pinturas
• Republic Powdered Metals Incorporated, see RPM International
• Rohm and Haas Company
• RPM International Incorporated
• Rust-Oleum Corporation, see RPM International
• Sherwin-Williams Company
• Sigma Marine and Protective Coatings Netherlands BV, see SigmaKalon
• SigmaKalon Group
• Sika AG
• Simco Coatings Incorporated
• StonCor Group Incorporated, see RPM International
• Sulzer Limited
• TCI Incorporated, see RPM International
• 3M Company
• Tnemec Company Incorporated
• Tremco Incorporated, see RPM International
• Unaxis Holding Incorporated
• United Gilsonite Laboratories
• Valspar Corporation
• Vapor Technologies Incorporated, see Masco
• Westfield Coatings Corporation, see RPM International
• Zinsser Company Incorporated, see RPM International
• Other Companies Mentioned in Study

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

• Summary Table

SECTION II -- MARKET ENVIRONMENT

• 1 Macroeconomic Indicators
• 2 Demographic & Household Trends
• 3 Personal Consumption Expenditures
• 4 Manufacturing Outlook
• 5 Construction Overview
• 6 Motor Vehicle Indicators
• 7 Paints & Coatings Demand
• 8 Historical Market Trends in Protective Coatings

SECTION III -- PRODUCTS

• 1 Protective Coatings Demand by Product
• 2 Corrosion Control Coatings Demand by Market & Substrate
• 3 Corrosion Control Coatings Demand by Formulation
• 4 Corrosion Control Coatings Demand by Application Technology
• 5 Anti-Wear Coatings Demand by Type, Market & Substrate
• 6 Waterproofing Coatings Demand by Formulation & Substrate
• 7 Antimicrobial/Antifouling Coatings Demand by Formulation & Substrate
• 8 Fire Resistant Coatings Demand by Formulation & End Use
• 9 Conformal Coatings Demand by Formulation

SECTION IV -- FORMULATIONS

• 1 Protective Coatings Demand by Formulation
• 2 Protective Coatings Demand by Organic Formulation
• 3 Epoxy Protective Coatings Demand by Product
• 4 Alkyd Protective Coatings Demand by Product
• 5 Polyurethane Protective Coatings Demand by Product
• 6 Acrylic Protective Coatings Demand by Product
• 7 Polyester Protective Coatings Demand by Product
• 8 Other Organic Protective Coatings Demand
• 9 Inorganic Protective Coatings Demand by Type
• 10 Nonmetallic Protective Coatings Demand by Type
• 11 Metallic Protective Coatings Demand by Type

SECTION V -- MARKETS

• 1 Protective Coatings Demand by Market & Substrate
• 2 Product Manufacturing Market for Protective Coatings by Segment
• 3 Transportation Equipment Market for Protective Coatings
• 4 Motor Vehicle Market for Protective Coatings
• 5 Aerospace Equipment Market for Protective Coatings
• 6 Other Transportation Equipment Market for Protective Coatings
• 7 Industrial Machinery Market for Protective Coatings
• 8 Metal Buildings & Components Market for Protective Coatings
• 9 Container & Closure Market for Protective Coatings
• 10 Electronics Market for Protective Coatings
• 11 Furniture Market for Protective Coatings
• 12 Appliance Market for Protective Coatings
• 13 Other Product Manufacturing Markets for Protective Coatings
• 14 Construction Market for Protective Coatings
• 15 Industrial Maintenance Market for Protective Coatings
• 16 Water/Wastewater Treatment Facilities Market for Protective Coatings
• 17 Pulp & Paper Facilities Market for Protective Coatings
• 18 Chemical Processing Facilities Market for Protective Coatings
• 19 Other Industrial Maintenance Market for Protective Coatings
• 20 Other Markets for Protective Coatings

SECTION VI -- INDUSTRY STRUCTURE

• 1 US Protective Coatings Sales by Company, 2004
• 2 Selected Acquisitions & Divestitures
• 3 Selected Cooperative Agreements

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

• 1 Historical Market Trends in Protective Coatings
• 2 World Protective Coatings Demand by Region, 2004

SECTION III -- PRODUCTS

• 1 Protective Coatings Demand by Product, 2004

SECTION V -- MARKETS

• 1 Product Manufacturing Market for Protective Coatings, 2004

SECTION VI -- INDUSTRY STRUCTURE

• 1 US Protective Coatings Market Share, 2004