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Janmar Coatings

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Janmar Coatings
Janmar Coatings, Inc.

I. Summary of Facts A) Market – Paint coatings industry 1) Three broad segments a) Architectural coatings: general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures. Purchased by do-it-yourselfers and is commonly called shelf goods. Accounts for 43 percent of industry market. b) Original equipment manufacturing (OEM) coatings: formulated to industrial buyer specifications and applied to original equipment during manufacturing. Used for automobiles, trucks transportation equipment, appliances, furniture and fixtures, metal containers and building products and industrial machinery and equipment. Represents 35% of the total industry market. c) Special-purpose coatings: formulated for special applications or environmental conditions, such as extreme temperatures, exposure to chemicals, or corrosive conditions. Used for automotive and machinery refinishing, industrial construction and maintenance, bridges, marine applications, highway and traffic markings, aerosol and metallic paints, and roof paints. Makes up 22 percent of total industry dollars. 2) Primary markets a) 50% of architectural coatings are sold under private, controlled, or store brands such as Sears, Lowe’s, Wal-Mart, Home Depot and hardware stores such as True Value and Ace hardware. Patronized by do-it-yourself painters. b) Specialty paint stores, lumberyards, and hardware outlets have also been able to compete in the paint business despite competition from mass merchandisers. Specialty paint stores account for 36 percent of paint and sundry sales while hardware stores and lumberyards account for 14 percent. Non-metropolitan areas have outdistanced mass merchandisers. Patronized mostly by professional painters. 3) Janmar Coatings, Inc. a) Privately held corporation that produces and markets architectural paint. Also produces a full line of architectural coatings and

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