Paint & Coatings Industry - March 2008 - (Page 28)

MARKETPLACE Third Quarter – 2007 Shipment Volumes Decline The paint industry continued to decline for the second straight year. The decline however was primarily in shipment volume, as shipment value continued to rise. For the third quarter, the Total Industry declined in shipment volume by 2.6%, but shipment value increased by 8.2% from the previous year. For 2007 YTD, shipment volume declined 4.8% from 2006 as the value increased 3.9%. Not only is shipment value keeping up with inflation, but the value increase is based on a declining volume of shipments. The Architectural Coatings segment is the main contributor to the increased shipment value. volume declining 1.7% and value declining 3.0%. For the nine month YTD, the segment declined 6.3% in volume and 5.7% in value. The Product OEM segment is really suffering since raw material increases are not being passed through to customers as in the Architectural segment. This segment reflects the downturn in the manufacturing segment of the U.S. economy. It is also being impacted through increased imports of finished products, especially larger products such as appliances and automobiles. Special Purpose Coatings Architectural Coatings Segment Shipment volume declined 4.3% in the third quarter, however shipment value actually increased 11.7%. This is a hefty increase in shipment value for the quarter. For 2007 YTD, shipment volume declined 6.8% while shipment value increased 8.4%. Decline in new housing starts together with housing re-sale slow down is obviously having a major negative impact on the shipment volume of Architectural Coatings. Passing along increased raw material cost is the likely cause of the increased shipment value. Manufacturers are not gaining in profits due to the higher costs of manufacture. This segment continued to have a good year. For the third quarter, shipment volume increased 1.5% and shipment value increased a whopping 16.2%! For 2007 YTD, shipment volume increased 5.0% and value increased 7.9%. Not only is shipment volume increasing, but the value is increasing at a greater rate. The latter is partially due to the pass through of raw material price increases. Both imports and exports have remained lower than in the previous year. Exports for the quarter were 8.2% of shipment value and Imports amounted to 1.5% of the shipment value for the industry. Edward W. Bourguignon is president of Posintel, Inc. You can reach him at 216/249.6756, or by e-mail at ebourguignon@sbcglobal.net. Product OEM Coatings This segment had a slow third quarter with shipment Table 1 | Coatings - third quarter, 2007, including 2006 and 2005 years and quarters (quantity in million gallons and value in $ millions). Quarter & Year Year-to-date Total Quantity 1,004.2 Total Value 15,639.7 Architectural Quantity 553.9 Architectural Value 7,640.4 Product OEM Quantity 277.7 Product OEM Value 4,399.1 Special Purpose Quantity 172.6 Special Purpose Value 3,600.2 2007 3rd quarter 2nd quarter 1st quarter Total Year 347.8 367.9 288.5 1,343.2 5,454.6 5711.5 4,473.7 19,353.5 187.3 205.8 160.8 748.7 2,625.2 2,853.5 2,161.7 8,931.1 98.3 99.3 80.1 387.3 1,506.5 1,521.7 1,370.9 6,094.2 62.2 62.8 47.6 207.2 1,322.9 1,336.3 941.0 4,328.2 4th quarter 3rd quarter 2nd quarter 1st quarter Total Year 288.5 357.0 378.8 319.0.0 1,380.6 4,298.4 5,040.5 5,399.0 4,6615.7 18,538.0 154.6 195.7 210.4 187.9 759.8 1,879.8 2,349.7 2,473.4 2,228.3 8,485.8 91.0 100.0 101.0 95.3 410.1 1,428.0 1,552.2 1,616.9 1,497.1 6,032.0 42.9 61.2 67.3 35.8 211.1 990.6 1,138.6 1,308.7 890.3 4,020.1 2006 4th quarter 3rd quarter 2nd quarter 1st quarter 313.5 365.5 396.8 304.8 4,254.9 4,953.6 5,268.4 4,061.1 166.5 203.1 223.2 166.5 1,844.6 2,277.3 2,530.3 1,833.6 100.8 103.9 109.4 96.0 1,495.9 1,574.6 1,590.5 1,371.1 46.2 58.4 64.2 42.3 914.4 1,101.7 1,147.6 856.4 Source: U.S. Census Bureau, Current Industrial Report; MQ325F(07)-3, and previous reports. Totals may vary due to rounding. By Edward W. Bourguignon | Posintel, Inc. 28 MARCH 2008 | W W W . P C I M A G . C O M 2005 http://WWW.PCIMAG.COM

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Viewpoint Industry News Calendar of Events Company News Mergers and Acquisitions Names in the News Marketplace Quarterly Stock Watch Reaching Strict VOC Requirements With Outstanding Durability for Industrial Maintenance and Marine Coatings A Unique Fungicide for Wood-Filled Plastic deSigns of the Times: Slacking Off! From Rocks to Nanos Shear-Free Dispersion Process Fluorinated Oxetane Oligomers as Versatile Intermediates for Polymer Modification The Effects of TPO Composition on Adhesion and Proposed Chemical Mechanism Supplier Showcase Color Management Materials Watch Products Classifieds Advertiser Index

Paint & Coatings Industry - March 2008

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