Paint, coating demand to hit $18 billion in U.S.Demand for paints and coatings should grow just under 2% per year through the year 2000, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new report from The Freedonia Group. Freedonia projects demand at the turn of the century to be 1.3 billion gallons, valued at more than $18 billion. Gains reflect divergent di·ver·gent adj. 1. Drawing apart from a common point; diverging. 2. Departing from convention. 3. Differing from another: a divergent opinion. 4. trends in the two major product segments - architectural paints and industrial coatings An industrial coating is a paint or coating defined by its protective, rather than its aesthetic properties, although it can provide both. The most common use of industrial coatings is for corrosion control of steel or concrete. . Reformulation is a key factor that will provide opportunities for producers able to address environmental and performance issues in the marketplace. The best prospects are expected in the industrial coatings markets where macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. expansion will stimulate demand for a range of coatings which are used in nearly every sector. In the larger architectural paints market, stable construction spending Construction Spending An economic indicator that measures the amount of spending towards new construction. Released monthly by the U.S. Department of Commerce's Census Bureau, it looks at residential and non-residential construction in the private sector, and state and federal at trends will temper gains, according to the Cleveland, OH-based research firm. Sustained growth in the economy will be offset by declining housing starts and the penetration of better, more durable and longer lasting formulations, especially water-based types. Powder and radiation-curable coatings will experience the best gains with about 9% annual growth through 2000. The largest segment, water-based and high-solids, will reach 712 million gallons. The enforcement of environmental regulations will continue to exert pressure on producers of paints and coatings, particularly those active in the industrial coatings sector. In recent years, reducing emissions of volatile organic compounds volatile organic compound Environment Any toxic cabon-based (organic) substance that easily become vapors or gases–eg, solvents–paint thinners, lacquer thinner, degreasers, dry cleaning fluids achieved by primarily using less solvent has been responsible for major changes in the industrial coatings market. As a result, conventionally applied solvent-borne coatings will continue their long term decline in favor of more environmentally acceptable technologies such as powders and high-solids. As the number of active firms declines through consolidation, the industry is in a much more streamlined form. The architectural market is dominated by a handful of players that have been able to exploit their national distribution capabilities. In the industrial coatings segment, a high degree of specialization exists, due mainly to the fragmented nature of the end-use markets. For example, leading producers may focus on powder coatings Powder coating is a type of dry coating, which is applied as a free-flowing, dry powder. The main difference between a conventional liquid paint and a powder coating is that the powder coating does not require a solvent to keep the binder and filler parts in a liquid suspension (a rapidly expanding product line) or on original equipment automotive coatings. The 214 page report, "Paints & coatings," is available for $3,200 from the Freedonia Group in Cleveland, OH. |
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