• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings

    Resins Update

    Coatings World Q&A: Eileen Weber of allnex
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    PPG Launches HOMAX TEX>>PRO Texture System by PPG

    New Digital Solution from Interpon Helps Customers Bring Colors to Life

    What Are You Reading?

    Birla Carbon to Increase North American Prices

    Jason Woods Joins The ChemQuest Group as Director
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Launches HOMAX TEX>>PRO Texture System by PPG

    New Digital Solution from Interpon Helps Customers Bring Colors to Life

    Benjamin Moore Receives Two J.D. Power Awards

    Jamestown Coating Technologies Acquires Yenkin-Majestic Industrial Paint Business

    New Appointment for AkzoNobel Industrial Coatings
    Additives
    Binders
    Pigments
    Solvents

    Birla Carbon to Increase North American Prices

    OQ Chemicals Announces Price Increases for Oxo Intermediates in the Americas

    Birla Carbon Achieves Platinum Rating by EcoVadis

    BASF Offers Color-stable Polyamide for Electromobility

    Stahl Releases Annual ESG Report to Drive Focus on Value-chain Sustainability and Transparency
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Clariant Additives

    Active Minerals

    Shepherd Color Company, The

    Pilot Chemical Company

    W. R. Grace & Co.
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Windy City Coatings Course

    Utech Las Americas 2022

    CPCA Annual Conference

    PAINTINDIA 2022 Exhibition

    Southern Society for Coatings Technology Annual Meeting and Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Clariant Additives

    Active Minerals

    Shepherd Color Company, The

    Pilot Chemical Company

    W. R. Grace & Co.
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Breaking News

    Results of Paint Contractor/U.S. Architectural Coatings Industry Research Report 2017 Vs. 2016

    ...

    Related CONTENT
    • Axalta Updates Financial Guidance
    • Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates
    • International Celebrates 140 Years As A Global Leader In Marine, Protective And Yacht Coatings
    • PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages
    • CCAI Presents 2021 Student Scholarships
    08.02.17
    Each quarter, Northcoast Research surveys a large sample of paint contractors to get a sense for current business trends while United Mineral & Chemical Corp. (UMC) provides insight into coatings raw material trends.  Please note that of the three primary architectural paint channels (paint stores, home centers, and independent distributors), the contractor survey results are largely a proxy for the paint store channel. For inquiries regarding the results of the survey please contact Kevin Hocevar at 216-468-6924 or kevin.hocevar@northcoastresearch.com.  For inquiries regarding raw materials please contact Dave Kotowski at 216-577-1982 or dkotowski@umccorp.com. 

    Contractor Sales — MSD Sales Growth in 2Q17
    The cumulative responses to the question of “How do your sales in April, May and thus far through June of 2017 compare to your sales during the same time last year”, show that the market appears to have grown solidly from the prior year. 67% of contractors experienced a higher level of sales YoY. 17% of contractors described their sales as “Flat”, while 16% experienced a YoY sales decline in the period. These metrics produce a net increase (percent of contacts who experienced higher sales in the period minus the percent of contact who experienced lower) of 51%. Sales grew an average of 5%.
    Price of Paint from Suppliers — 2017 Price Increases Have Not Slid Sequentially from 1Q17
    When describing paint purchase prices YoY, 67% of respondents noted pricing as being higher compared to the prior year while 7% noted prices being lower. The remaining 26% described pricing as flat from the prior year.  The net number of contacts seeing higher pricing YoY first jumped in 4Q16 as the SHW price increase took effect December 2016, however this jumped even more in our 1Q17 results as the remaining manufacturers’ price increases took effect and has remained relatively constant sequentially in our 2Q17 survey. On average, contacts indicate pricing is up 3.0% YoY in 2Q17, consistent with our 1Q17 survey.

    Raw Materials Pricing and Supply Update
    As we enter the third quarter, global pricing for TiO2 continues to be on an upward trend.    Depending on many variables, coatings industry players may have endured $0.40 to $0.50/lbs in cumulative increases during the last 6 to 7 quarters (30-40%).  During this period, the industry witnessed the merger of the two largest Chinese TiO2 producers, Henan Billions and Lomon.  This and other Chinese environmental / government led initiatives has allowed prices to increase more rapidly in China than in the North American market.  We see the Chinese market settling down as we proceed through the second half of 2017.  It was also announced that Tronox will acquire Cristal.  This merger will form the first or second largest global producer of TiO2.   Consolidation in the "chemical" industry continues to impact pricing and the supply channels to the coatings industry.  There does not seem to be anything to stop this M&A trend.  However, there is a little light at the end of the TiO2 tunnel.  This will not come in the form of TiO2 price decreases, but we do see prices stabilizing at their current levels (or just above) as we enter 2018.  2017 will be a big transition year.  Price levels will be affected more by demand than by supply. We believe smaller Chinese suppliers will come back on line at the higher price levels.  They will have environmental hurdles to overcome to do so.  Part of the price stabilization thought process is based on this expected increase in Chines ouput.

    Early in Q4 2016, OPEC made a valiant effort to lower the output of crude oil to increase the price.  This tactic worked for approximately 4 months.  During this period, the price of crude oil remained stable in the $53-56 range.  Even as this article is being written, crude has fallen to around $42 a barrel.   Over time this should be good news for resin buyers.  Propylene is on a downward trend as a result of falling crude prices.  The short term supply shortages on Styrene Monomer and Methyl Methacrylate have ended or are close to subsiding.  Acrylic Acid and Ethyl Acrylate have fallen off their recent high price levels.  The near term outlook for solvent and resin prices looks to be on lower side of the recent curve.  This piece to the raw material cost model should help paint margins in the coming quarters. 

    3-Month Outlook — Strong Enthusiasm Carries Over into 2Q17
    At 75%, most contractors believe that business trends are improving/will improve over the coming months. Only 25% described their outlook as “Neutral” (business trends will stay about the same) while none responded in the negative territory. In asking this question, we attempt to gauge actual expectations for the coming months based on how business has been trending as of late and based on leading indicators such as contractor backlogs, bidding activity, and any other relevant factors. Given no responses in the negative, a net 75% of contacts are feeling good about the upcoming months. In our prior survey, no contacts responded in the negative territory as well.  Our contacts described increased levels of bidding activity and backlogs as the primary drivers behind their positive outlook for the coming months. In terms of what’s driving the increased bidding activity/backlogs, many contacts cited renewed consumer/business confidence which is having a positive impact on spending, exterior paint business booking out further than usual, and general strength in the economy.  Limiting the upside however is a lack of competent painters which has been a headwind for some time.

    Northcoast Research 2Q17 Paint Contractor Survey Data by region:
    Related Searches
    • paint
    • cristal
    • chemical
    • coatings
    Suggested For You
    Axalta Updates Financial Guidance Axalta Updates Financial Guidance
    Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates
    International Celebrates 140 Years As A Global Leader In Marine, Protective And Yacht Coatings International Celebrates 140 Years As A Global Leader In Marine, Protective And Yacht Coatings
    PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages
    CCAI Presents 2021 Student Scholarships CCAI Presents 2021 Student Scholarships
    hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs hubergroup: Price Increase Due to Massive Rise in Raw Material and Transport Costs
    Lanco Paints & Coatings Expands in the Americas Lanco Paints & Coatings Expands in the Americas
    Registration Open for SSCT Annual Technical Conference Registration Open for SSCT Annual Technical Conference
    Paints and Coatings Market Worth $179.4 Billion by 2025: MarketsandMarkets Paints and Coatings Market Worth $179.4 Billion by 2025: MarketsandMarkets
    Autonomic Materials Adds  William Sante to Management Team Autonomic Materials Adds William Sante to Management Team
    coatingAI AG Harnesses Advanced Computer Vision, Machine Learning for Coatings Industry coatingAI AG Harnesses Advanced Computer Vision, Machine Learning for Coatings Industry
    Sarah Eckersley Set as Keynote Speaker for Eastern Coatings Show 2021 Sarah Eckersley Set as Keynote Speaker for Eastern Coatings Show 2021
    European Coatings Show Conference to be Held Remotely European Coatings Show Conference to be Held Remotely
    Sun Chemical Launches Lead-Free Paliotan VIU Pigments Portfolio Sun Chemical Launches Lead-Free Paliotan VIU Pigments Portfolio
    Akrochem Acquires Bech Chem, Expands Into the Paint and Coatings Industry Akrochem Acquires Bech Chem, Expands Into the Paint and Coatings Industry

    Related Content

    • Breaking News | Financial News | Market Trends & Forecast
      Axalta Updates Financial Guidance

      Axalta Updates Financial Guidance

      Axalta updates financial guidance to reflect ongoing impacts of customer supply chain shortages and raw material and logistics constraints.
      09.22.21

    • Breaking News
      Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates

      Pacific Coatings Show and Gulf Coatings Show Announce 2022 Dates

      New 2022 shows and conferences for the Asia-Pacific Region and Middle East will be held in Indonesia and the United Arab Emirates.
      09.20.21

    • Breaking News | Marine Coatings
      International Celebrates 140 Years As A Global Leader In Marine, Protective And Yacht Coatings

      International Celebrates 140 Years As A Global Leader In Marine, Protective And Yacht Coatings

      ...
      09.16.21


    • Breaking News | Financial News
      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG Provides Sales Update and Reports Worsening Supply Disruptions and Customer Parts Shortages

      PPG’s sales volumes are being impacted by the increasing disruptions in commodity supplies.
      09.07.21

    • Breaking News
      CCAI Presents 2021 Student Scholarships

      CCAI Presents 2021 Student Scholarships

      Scholarships are awarded to students enrolled in programs that could lead to a career in coatings and finishing.
      09.02.21

      Breaking News
      • PPG Launches HOMAX TEX>>PRO Texture System by PPG
      • New Digital Solution from Interpon Helps Customers Bring Colors to Life
      • What Are You Reading?
      • Birla Carbon to Increase North American Prices
      • The 13th International R-M Best Painter Contest Final Set for June 2022
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Biocides Market Outlook - 2027
      • Lab & Testing Equipment Directory
      • Aerospace Coatings Market

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      Tocotrienols May Aid Weight Loss and Cognitive Performance, Animal Study Finds
      Leaven Essential to Launch Branded Botanical Extracts to Global Markets
      Lonza Expands Capsugel Capsule Offering with Titanium Dioxide-Free, White Hard Gelatin Capsules
      Coatings World

      Latest Breaking News From Coatings World

      PPG Launches HOMAX TEX>>PRO Texture System by PPG
      New Digital Solution from Interpon Helps Customers Bring Colors to Life
      What Are You Reading?
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      Study Demonstrates Promise of Pulmonary Congestion Detection Tech
      CardioRenal Raises 3.3 Million Euros
      Japanese Regulators Approve Shockwave Medical's Coronary IVL
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Catalent Introduces UpTempo Virtuoso Platform
      Elicio Therapeutics Enters Clinical Supply Agreement with Regeneron
      Reaction Biology Expands Executive Leadership Team
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      A Look at Machine Gun Kelly's $30K Diamond Mani
      Doja Cat Rocks Glam Makeup & Nails at the Billboard Music Awards
      Maggie Q Launches Beauty Supplement
      Happi

      Latest Breaking News From Happi

      Thread Beauty Launches Vegan Lip Gloss Collection
      Selig Group Names Adam Sheridan Next President
      Lip Shimmer, Powder Sunscreen and Retinol Drive Latest Beauty Searches: Spate
      Ink World

      Latest Breaking News From Ink World

      INX to Highlight Color Perfection Program, INX University at GulfCan
      Kornit Hosts Kornit Fashion Week London 2022
      Zeller+Gmelin Launches UV-Curable and Water-Based Inkjet Inks
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Schreiner ProTech introduces new PCS solution for electric vehicle charging
      FTA and FFTA announce 2022-2023 board updates
      Bar Graphic and J&J Converting open US demo center
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Essity Wins Innovation Award at Interclean
      Weekly Recap: Ontex Confirms Possibility of Attindas Deal, Purell Launches New Wipes & More
      TSG Finishing Starts Modernization Project
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      Denise Pedulla Appointed as Chief Legal Officer at Conformis
      ODT's Most-Read Stories This Week—May 14
      Steven Haddad Joins Extremity Medical as Chief Clinical Officer
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Google Cloud, Saule Technologies and Columbus Energy Begin Strategic Cooperation
      JDI Develops eLEAP, World’s First Maskless Deposition + Lithographic OLED
      Toppan Develops Temperature Logger Label for Long-Distance Transportation

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login