Industry Analysis & Industry Trends
The first commercial production of paint in Australia dates back to the 1850s. Over the past century, the Paint and Coatings Manufacturing industry recorded strong growth in line with Australia's industrial development, before entering a slower growth phase as the industry matured. Despite now being in a decline phase, it remains a relatively important component of Australia's broader chemical segment.
One of the defining characteristics of the industry is the dominant position of a few major players that have a strong stable of national and global brand names within different pricepoints and product segments. These major players are vertically integrated, so competition occurs across the supply chain rather than just at the manufacturing level... purchase to read more
Industry Report - Industry Investment Chapter
The industry is characterised by a low level of capital intensity, reflecting the use of only semi-automated production process operated by most industry participants. In 2014-15, the industry will spend $9.21 on wages for every dollar spent on capital.
In the ink product segment, the labour-to-capital ratio is higher for smaller manufacturers producing specialty inks and whose operations tend to be more labour-intensive. However, it tends to be lower for the larger manufacturers involved in the production of general commodity inks.
Over the five years through 2014-15, companies have been forced to adopt various efficiency-improving measures in the face of a highly competitive environment... purchase to read more