Up against the wall: Industry revenue declines as downstream demand dries out

The Paint and Coatings Manufacturing industry is a key component of Australia's broader chemical manufacturing sector. The industry includes major players with strong national and global brand names across 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.The industry's performance over the past five years has been constrained by cyclical variations in Australia's housing market and the gradual structural decline of local printing firms and motor vehicle manufacturers. Industry revenue is expected to contract at an annualised 3.4% over the five years through 2018-19, to $2.7 billion. This includes an anticipated fall of 3.7%...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Structural changes in Australia’s industrial economy are influencing the industry’s performance
  • Many industry firms have focused on customer service and have started offering more premium goods
  • A shift to capital-intensive production methods is forecast to cause industry employment to fall
  • Industry Report - Industry Analysis Chapter

    The Paint and Coatings Manufacturing industry’s performance has been volatile over the past five years. After a mild recovery between 2013-14 and 2015-16, industry revenue has slumped in subsequent years. Overall, industry revenue is expected to fall at an annualised 3.4% over the five years through 2018-19, to $2.7 billion. This includes an anticipated decline of 3.7% in the current year, due to subdued demand from most major market segments. In particular, a downturn in the Australian housing market is expected to adversely affect demand for architectural and decorative (A&D) paints in the current year.Profit pressuresSeveral important downstream markets have exhibited limited demand over the past five years. For...purchase to read more.

    Additional Insights for the Paint and Coatings Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Paint and Coatings Manufacturing are:

  • Ability to accommodate environmental requirements
  • Production of premium goods and services
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from painting and decorating services and Demand from printing and printing support services in the Paint and Coatings Manufacturing industry impact industry performance..

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    What's in this report

    What is the Paint and Coatings Manufacturing Industry?

    Industry firms primarily mix pigments, solvents and binders into paints and coatings. Operators also manufacture allied paint products such as putties, caulking compounds, varnish removers and rubbing compounds. Companies that manufacture inks and toners are also included in the industry.

    Industry Products
  • Architectural and decorative paints
  • Inks
  • Industrial, automotive & marine coatings
  • Wood-care and other products
  • Fillers, putty and caulking compounds
  • Industry Activities
  • Paint
  • Paint or varnish removers
  • Enamels, lacquers, stains and shellac
  • Ink including carbon, drawing, printing, writing and silk screen ink
  • Toner
  • Fillers, putty and rubbing compound
  • Water repellent coatings (for concrete and masonry)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from painting and decorating services
  • Demand from printing and printing support services
  • World price of crude oil
  • Demand from motor vehicle manufacturing

  • Current Performance
  • Profit pressures
  • Participation
  • Changing market trends
  • Environmental gains
  • Chart: Revenue Growth

  • Industry Outlook
  • Contracting base
  • Green coatings
  • Table: Paint and Coatings Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Paint and Coatings Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Printing
  • Plastic Bag and Film Manufacturing
  • Motor Vehicle Manufacturing
  • House Construction
  • Painting and Decorating Services
  • Hardware and Building Supplies Retailing
  • Hardware Wholesaling

  • Key Selling Industries
  • Adhesive Manufacturing
  • Basic Inorganic Chemical Manufacturing
  • Basic Organic Chemical Manufacturing

  • Products & Services
  • Architectural and decorative paints
  • Industrial, automotive & marine coatings
  • Inks
  • Wood-care and other products
  • Fillers, putty and caulking compounds
  • Chart: Paint and Coatings Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households and tradespeople
  • Industrial users
  • Packaging industries
  • Export markets
  • Printing and publishing companies
  • Chart: Major Market Segmentation for the Paint and Coatings Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Paint and Coatings Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paint and Coatings Manufacturing Industry

  • Industry Globalization
    DuluxGroup Limited, PPG Industries Australia Pty Ltd, Sherwin-Williams (Australia) Pty Ltd, Akzo Nobel Coatings (Holdings) Pty Limited,
  • Table: DuluxGroup Limited - financial performance
  • Table: PPG Industries Australia Pty Ltd - financial performance
  • Table: Sherwin-Williams (Australia) Pty Ltd - financial performance
  • Table: Akzo Nobel Coatings (Holdings) Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Paint and Coatings Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Paint and Coatings Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Architectural And Decorative (A&D) Paints
  • Paints that are aimed specifically at the domestic market, including all clear and pigmented coatings for use on both interior and exterior surfaces for decorative and protective purposes.
  • Flexographic Inks
  • Flexographic inks are inks transferred by flexography that are commonly used in the printing of packaging materials.
  • Gravure Inks
  • Gravure inks are often used in the commercial printing of magazines, wallpaper, and in a growing number of flexible packaging applications. They often compete against flexographic inks.
  • Industrial Coatings
  • Paints and coatings used or applied in the manufacturing of other products.
  • Letterpress Inks
  • Letterpress inks were traditionally used by printing establishments. A revival in letterpress publishing as part of the small press movement has helped sustain demand for some letterpress inks.
  • Offset Inks
  • Offset inks are oil-based paste inks with a relatively high pigment concentration. They are used in conjunction with offset printing processes to produce letterpress or lithography prints.
  • Varnish
  • A transparent, hard, protective finish or film. It is predominantly used to finish wood but it can also be used on other materials.
  • Volatile Organic Compounds (Vocs)
  • Paints and coatings often use man-made volatile organic compounds, which can be dangerous to human health and cause environmental harm.
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    Why buy this report?

    IBISWorld’s Paint and Coatings Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Paint and Coatings Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Paint and Coatings Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Paint and Coatings Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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