Jones Blair Swot

1. The United States paint industry and the architectural paint coatings industry is a large maturing market. In 2004 US paint industry sales were estimated at slightly over $16 billion dollars with $12 billion of that focuses on architectural pain coatings and sundries. With a growth rate at the approximate rate of inflation expected for 2005. Of the national $12 billion market, Dallas Fort-Worth (DFW) regional sales were estimated at $80 million dollars with Jones Blair capturing $12 million dollars. It is characterized by a slow growth rate that be attributed to a number of things such as the housing market, and the increase in products and materials that don’t require paint (aluminum siding for houses, injection molding plastics). These substitute products reduce the availability of new markets. Additionally the increase in the quality of paint has affected the market as well. The average dollar pain purchase occasion is $74 mainly attributed to the fact that most paints are one coat only. The US Paint industry is divided into three broad segments.

Internal to the Architectural Coatings Division can be broken down like this into three main segments.

Competition on the retail level and the paint manufacturing level is on the rise, although the number of paint companies is presently declining roughly 3% a year. Currently around 600 paint companies exist a number 40% fewer than in 1980, however merger activity has boosted market share for larger companies. Larger private controlled store brands such as Sears or Lowes have entered into the market and have assumed approximately 50% of the market share.
The industry focuses its sales on three main areas. Do it Yourself (DIY, Professional Painters and Governmental, Exports, and Contractors. See chart below for market distribution of architectural coatings dollar sales.

Growth opportunities have a fluctuating demand with the market. When the economy is low, there is an increase in DIY