The US paint industry was in a mature stage of life cycle. During 1999 sales were around $13 billion. The following are three different segments of the US paint industry.
1. Architectural Coatings:used for general purpose which accounts for 43% of total sales, sold through wholesaler and retailer to end consumer.
2. OEM coatings: formulated for industrial purpose which represent 35% of total sales.
3. Special Purpose Coatings: designed for special or environmental conditions which accounts for 22% of total sale.
During 1999, architectural paint coatings and sundries segment generated an approximate sale of $10 billion dollar and is considered to be a mature market with 1-2% of sales growth every year. The two factors which affected the demand of this segment are competition from alternative materials for coating and higher quality of paints in the market, which increased demand for sundries. Due to EPA compliance regulations, paint industry faced a low profit margin. This resulted decline in number of paint industries and fueled the acquisition of smaller companies by bigger companies. The small regional paints which adopted new technology and new formulation method were successful in competing against the big players. About 50% of architectural coatings were sold under private, controlled or store brands. Independent hardware stores and lumberyards accounted for 14% and the balance 36% by specialty brands. The architectural coating behavior highlight that 50% sales contribution is by do-it-yourselfer paints and 25% is accounted by professional painters. It also speaks about the significance of service for the people who are looking for information about the application, color matching and durability.
Jones Blair Company a private organization which produces and sells architectural paint alongside it sells the sundries made by other manufacturers under its brand name. It markets its product in over 50 countries and DFA metropolitan area is