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    Features

    Exterior Architectural Coatings

    A stronger economy, demand for eco-friendly paints driving growth.

    Exterior Architectural Coatings
    Exterior Architectural Coatings
    Photo Credit: Courtesy Behr
    Exterior Architectural Coatings
    Photo Credit: Courtesy PPG
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    Anthony Locicero, Associate Editor11.05.18
    Analysis from research groups forecasts continual growth in the architectural coatings over the next few years. 

    MarketsandMarkets in a November 2018 report – “Architectural Coatings Market by Resin Type (Acrylic, Alkyd, Epoxy, Polyurethane, Polyester, & Others), by Technology (Waterborne, Solvent Borne [sic]), by Application (Residential & Non-Residential) – Global Forecasts to 2020” – estimates the market hitting approximately $85.2 billion by value by 2020.

    An increase in the demand in waterborne architectural coatings will be the “key influencing factor,” according to the report.

    As defined by the American Coatings Association, architectural coatings are used for decoration and general maintenance of residential, commercial, institutional and industrial buildings.

    This includes both interior and exterior paints – either water-based or solvent-based – used mostly by professional painters and Do-It-Yourselfers.

    Market growth

    “We saw a small, two to three percent growth in most of our segments that sell exterior architectural coatings – [particularly] in our coil and powder coatings segments,” said Benny Mitchell, sales manager, Metal Coatings Extrusion, AkzoNobel. “We are also seeing market growth above that from 2017 in commercial applications in both coil and powder coatings that serve larger projects – schools, hospitals, large building projects, etc.”

    “Both residential and non-residential [coatings] are exceeding expectations within the U.S. The main factor is the strong economy,” said Mike Mundwiller, Benjamin Moore field integration manager.

    “In 2017, exterior paint volume grew at three percent, on par with the total coatings market,” said Jenny Burroughs, PPG senior product marketing manager. “Growth was stronger among professional end-users, especially residential repaint (up five percent) and new commercial (up six percent).”

    What’s driving this growth?

    “In commercial applications, we are seeing bullish investments in new projects through maybe 2020,” Mitchell said. “These projects have long lead times, and the current confidence in the U.S. economy is driving activities to spend money on improvements, including new builds and renovations on existing structures.

    “We monitor housing starts as an indicator of the health of the economy, and we see infrastructure growing, with expansions and renovations at airports, new government buildings, etc.,” he continued. “We see a high single-digit growth in this area for the foreseeable future. We are also seeing a four to five percent increase in the growth of the residential exterior coatings market. That includes a diverse group of materials requiring coatings.

    “In addition, across the country, we are seeing a steady level of consumer confidence to invest and improve residential structures, especially in Florida and the Midwest. At this point, we don’t expect the growth trend to slow down any time soon,” Mitchell concluded.

    Jodi Allen, chief marketing officer at The Behr Paint Company, relayed “a number of factors.”

    “Millennials,” she said, “are now entering the housing market and are currently the largest population of first-time home buyers.

    “Additionally, individuals who encountered foreclosures between 2008 and 2010 are now becoming eligible for ownership,” Allen continued. “We’re also observing an increased demand for home updates, in part due to the fact that 65 percent of the existing housing stock was built before 1990.”

    Extreme weather conditions – in 2018, parts of the U.S. endured hurricanes Florence and Michael – can cause a surge in paint and primer sales, Allen noted.
    “When heavy storms are predicted to roll in, we ship extra product to that market to meet increased demand,” she said.

    “The strong economy has been the main driver for growth,” said Sam Carrillo, director of product management at Dunn-Edwards. “The commercial markets have also been very strong as many businesses continue to grow. [This is] also, due to strong the economy.

    “Like last year, the real estate market in the Southwest continues to favor sellers, with strong demand and rising prices,” Carrillo continued. “Higher home prices are also supported by lower housing inventories in market. Much of the growth in exterior and interior coatings business has been driven by existing homeowners deciding to sell or beautify their existing homes.”

    Burroughs credits a rise in existing home sales, new construction, employment rate and consumer confidence for market growth.

    Global outlook

    The global exterior architectural coatings market is expected to witness a “significant” growth [from 2017-2025] owing to the increase of infrastructure industry and construction projects in emerging economies including India, China, Brazil, and Singapore, per a Persistence Market Research report being released in December 2018.

    “Coatings are a global market, and a lot depends on costs and tariffs and where things are coated,” Mitchell said. “Right now, a majority of what is coated in China comes to the U.S. Meanwhile, for customers in Canada, tariffs have slowed what moves across the border from New York to Canada.

    “Particularly in our metal coatings business, we are seeing growth in countries like India, parts of Asia and in the Middle East, as these local and regional economies develop and expand. These areas have a low cost to manufacture and can grow quickly if they can transport their goods to important consumer markets,” he continued.

    “There is a big discrepancy regarding labor availability. We are seeing a lack of qualified labor in certain markets by customers who sometimes struggle to hire and keep qualified employees, particularly in metal coatings,” Mitchell reported. “This gap in labor can impact how a business grows in a vibrant economy. Workforce development activities can help communities teach an entrepreneurial mindset to workers entering the labor market.

    “Meanwhile, in powder coatings, we see a strong influx of workers. However, these tend to be entry-level workers [rather than] qualified professionals. Working conditions...play a big factor,” he concluded.

    “There are a variety of global regions that offer a strong opportunity for growth, including those where urbanization is increasing and the population contains a high percentage of people who are between 25 and 35 years old and moving into the middle-class homeowner segment,” Allen added. “Broadly speaking, this includes portions of Latin America, Asia and the Middle East.”

    MarketsandMarkets expects China, India, Vietnam, and Indonesia to lead the Asia-Pacific architectural coatings market.

    LEED

    Leadership in Energy and Environmental Design (LEED) and the green building movement are gaining momentum.

    LEED is the most widely used green building rating system in the world. Available for virtually all building, community and home project types, LEED provides a framework to create healthy, highly efficient and cost-saving green buildings, according to the U.S. Green Building Council.

    MarketsandMarkets said consumers across the globe are looking for high-quality paints, coatings and stains that can offer convenience, durability, easy application and pleasing aesthetics without strong odors and high volatile organic compounds.

    A shifting consumer preference towards waterborne architectural coating, owing to its eco-friendly nature, will spur product demand, Grand View Research said.
    Waterborne technology accounted for 78.4 percent of the overall volume in 2015, per Grand View Research.

    Gabriel Morales-Sada, architectural market segment manager, powder coatings Americas for AkzoNobel said the company’s powder coatings business has a “strong” environmental story.

    “There are many advantages, as they contain no solvents or VOC’s, there is no damage to the environment during application,” he noted. “The waste is also not hazardous and can be disposed of in landfills. A significant step for AkzoNobel was to be named the first powder coatings company to pursue and receive an Environmental Product Declaration (EDP) for our Interpon portfolio.”

    Regarding EPD, “Not only is the finished product measured, but the factors for the upstream raw materials and downstream usage are also factored in to give a holistic view through a lifecycle analysis,’’ according to AkzoNobel’s Interpon.

    “[O]ur products went through an EPD, including a life-cycle assessment using ISO standards, which measures the eco-footprint of a material taking into consideration the raw materials used to create it, how and where it was manufactured and how it is used,” Morales continued. “When a specifier or architect uses an exterior building item coated with an EPD-named product, LEED points are created and helps building professionals make smart product choices for the long-term sustainability of their construction project.

    “With factory-applied metal coatings, there are no LEED credits for liquid versus powder products. We do offer a diverse metal product offering, including chromate-free primers, surfactant-free and PFOA-free products that have improved environmental performance for metal applications,” he concluded.

    “For many years, we’ve seen ‘environmentally friendly’ paint products on the market. Over time, technological advancements in low VOC paints have led to products that are both environmentally conscious and durable, with high-performance characteristics,” Allen said.

    For a low VOC product built for performance and durability, Allen recommends BEHR PREMIUM PLUS ULTRA and the BEHR PRO i300 series, which are both sold exclusively at The Home Depot stores nationwide.

    Behr Paint Company also created a lifecycle assessment “to help develop multiple EPDs and continually improve our operations,” Allen noted.

    “These EPDs contribute toward points for LEEDv4 BD+C: New Construction, Core and Shell, Schools, Hospitality and Health Care,” she added. “Behr is currently working on generating Health Product Declarations (HPD) to also contribute toward LEEDv4 credits.”

    BEHR PREMIUM PLUS, BEHR PREMIUM PLUS ULTRA Interior, BEHR MARQUEE, BEHR PRO i300, and KILZ 2 Primer contribute towards satisfying LEED credits – Low-Emitting Materials Credit, Enhanced Indoor Air Quality Credit, Building Life-Cycle Impact Reduction Credit and Building Product Disclosure and Optimization — Environmental Product Declarations Credit – the chief marketing officer said.

    Benjamin-Moore’s interior Gennex tinted products such as Aura, Natura, Regal Select, ben, Eco Spec, and Ultra Spec meet various LEED standards including emission certification requirements (e.g. LEED v4 Credit, CPDH v1, CHPS, VOC), according to Senior Technical Project Manager Edja Kouassi.

    “Red-list free Declare labels and EPDs are also available for select exterior paints,” Kouassi continued. “Plus, we can issue HPDs upon request for virtually any of our products. We have a LEED brochure that details which product(s) qualify for most of the various LEED standard(s).

    “With the launch of LEED v4, the market continues to steadily adopt many of the design, construction and operation guidelines for high-performance structures,” Carrillo said. “Dunn-Edwards has responded with products and certifications to meet the demand for greener materials.

    “We provide numerous products that meet LEED criteria for Low-Emitting Materials, and also offer products that have various 3rd-party certifications, such as Master Painters Institute (MPI), Collaborative for High Performance Schools (CHPS), and Greenwise (CRGI),” Carrillo continued. “All Dunn-Edwards products bearing our EG-FREE logo are formulated without Ethylene Glycol or any other TAC/HAP compounds.  Ethylene Glycol (EG), a solvent used in many water-based paints, is listed as a Toxic Air Contaminant (TAC) and Hazardous Air Pollutant (HAP).  In 1983, we were the first in the industry to voluntarily replace EG with Propylene Glycol, a non-toxic alternative ‘generally regarded as safe’ by the FDA.”

    “Low-VOC is no longer a specialty product offering, it is a must-have option for all brands in the space,” Burroughs said. “One such product is PPG PAINTS PURE PERFORMANCE paint – sold at PPG Paints stores and independent retailers nationwide – which is formulated to provide excellent hiding and ease of application in addition to low odor, zero VOCs, and anti-microbial properties resulting from the incorporation of a preservative which inhibits the growth of mold, mildew and algae on the dry paint film. Pure Performance is GreenGuard Gold Certified and meets the emissions and materials disclosure criteria for LEED v4.”

    Colorants added to the base paint may increase VOC levels, depending on the color choice, she added.

    Trends and styles

    “The big trend is the move toward low-gloss coatings,” AkzoNobel’s Morales said. “We continue to see a demand for low-gloss looks for metal coatings in both residential and commercial applications. Specifiers are asking for matte and low-gloss looks. We have little demand for high-shine or glossy looks that show changes over time and are harder to maintain. That goes especially for metal roofing and vinyl windows, which used to be glossy and are now opaque with a lower gloss.

    “In the powder coatings area, customers are demanding lower glosses, smoother, silkier finishes and the possibility of brighter metallic finishes for their products,” he continued. “Lower gloss finishes on goods allow manufacturers to create new, quality looks and architects are complimentary of our new lower gloss product offering.

    “Color trends we see in the exterior architectural area continue to lean toward the ‘anodic look,’ such as bronze, copper, champagne and other natural metals. Architects want long-term durability and a diverse color selection, ‘anodic look’ liquid and powder coating finished metals particularly lend themselves to that,” Morales concluded.

    “Trending commercial colors include bright and bold shades like Stiletto Love and Perfect Sky, which entice alertness, spark productivity and breathe dynamism,” Behr’s Allen said.

    “Within the hospitality market, a blend of vivid and deep colors makes guests feel welcome and inspired, like The Real Teal and Polar Bear. Colors like Riverdale, Harmonious Gold and Peaceful Blue help professionals create a calming environment within the healthcare segment. The multifamily color palette includes grounding and versatile colors like Livingston and Slate Rock that add character and enhance the underlying architecture.

    “In addition to the BEHR PRO Color Card, Behr recently announced its 2019 Color of the Year and Color Trends palette, which reflects the design and color trends we’re predicting will permeate the paint industry in the new year,” she added. “The BEHR 2019 Color of the Year, Blueprint, is a usable and versatile mid-tone blue that works well in many different spaces, both interior and exterior.”

    The BEHR PRO Professional Products & Services Program recently introduced a new Commercial Color Inspiration Color Card, which features curated color palettes for commercial, healthcare, hospitality and multifamily properties, Allen said.

    “The Commercial Color Inspiration Color Card inspires professionals to make confident color selections to better meet the needs of their clients,” she added. “The BEHR PRO Program offers color expertise for commercial designers through custom color matching, digital color renderings, color boards and books—and a full system of 1,400+ colors.”

    “In general, color for 2018-2019 features rich hues such as deep greens, blues, terracotta oranges and deep reds that are reminiscent of earthy elements and marine environments,” said Sara McLean, color expert and stylist for Dunn-Edwards. “Contemporary and modern architecture continues to expand. With the use of stone, pops of color and metals, clean lines and modern garden features are highlights of many newer and remodeled homes. The idea of minimalism is displayed with more open space and less clutter. The use of monochromatic color palettes highlights this trend.

    “The trend of the warming of colors and a return to more beiges, tans and browns highlights the popularity of rawness, nature-inspired architecture,” McLean continued. “Whether tiny houses to adding natural details such as raw wood corbels, posts, columns, pergolas, etc. to a current home, adding natural elements showcases the homes in a new way. Pair these raw, natural wood elements with nature-based paint hues such as sand, beige, tan or a range of browns; add sage or deep green in details; and a pop of accent with a deep spicy hue such as our 2019 Color of the Year, DET439 Spice of Life, will create a warm, inviting retreat.

    “With more people wanting to live in urban environments, smaller condos and apartments are trending,” the color expert and stylist noted. “The exteriors need to capture the attention and to do this, many architects and developers are turning to the use of more color on exteriors, along with the use of interesting materials such as colored glass, metal and woods to create artistic exteriors that any tenant would be proud to live in.

    “Rural architecture is trending,” she said. “People are reinvesting in their hometowns, rehabbing downtown brick buildings to remodeling older farmhouses to meet today’s needs, and with this a trend has begun to understand the local materials, vernacular architecture and needs of these customers. Color palettes, whether regionally historic or more modern, still reflect the local landscape.

    “A return to classics is still trending and beyond the trends we highlighted last year of Art Deco and Craftsman, we see trends in Neoclassical design,” McLean explained. “Though more interior, many design elements can be brought outdoors, from the use of classic stone and formal gardens to deep, rich coloring highlighting doors, shutters and trim work, all providing a formal exterior reminiscent of European estates.

    “Nomadic living is up-trending in both urban environments and travelers’ lifestyles. Nomadic architecture is looking to capture these newer lifestyle trends with flexible spaces, moveable homes and artistic architecture,” she said. “Color is integrated in a variety of charcoal and black tones, along with natural elements and bright pops of color, to highlight the artistic lifestyle of the nomad.

    “Beyond the Mid-century modern and Bauhaus design trends we highlighted last year, 1970s architecture, design and color are trending as well. Think sunset colors such as deep reds, oranges and pops of golden yellow paired with olive greens, sand and sky blue. Pair with terrazzo flooring entryways, metal lattice structures and retro-inspired landscape for a fun, retro home,” McLean concluded.

    “As darker colors continue to grow in popularity, PPG’s global color experts hand-selected Night Watch (PPG1145-7) as the PPG paint brand’s 2019 color of the year because it’s reflective of the increasing need to reconnect with nature in today’s restless society,” said Dee Schlotter, PPG senior color marketing manager. “This rich, luxurious, and classic shade of green is perfect on exterior areas of the home such as on siding, front doors or shutters. Night Watch offers a beautiful alternative to the trending black or deep blue-black colors. Colors from nature do not clash, so Night Watch blends perfectly with greenery or other landscape elements of the home.” 
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