Enso uses a new resin technology that allows for a harder
surface than that of many low odor products, and it achieves
this hardness without using organic solvents. It is easy to
apply and has excellent flow and leveling for a smooth finish.
It also offers great hide, so fewer coats are needed, and provides excellent washability. Enso is available in a primer and
in flat, eggshell and semi-gloss finishes. Enso also comes in a
full range of light to dark colors. In other company news,
effective January 1, Dunn-Edwards’ line of premium interior
and exterior paints will be getting new names, a new look,
and new gloss levels. All of the premium interior paints will
fall under the umbrella name Suprema and the premium
exterior paints will be named Evershield. Suprema will be
available in flat, velvet, eggshell, low sheen and semi-gloss.
Evershield will be available in flat, eggshell, low sheen, semi-gloss and gloss. Dunn-Edwards has made a significant investment in re-packaging these products. New metallic gold
labels were designed to give them a distinctive, high-end look
that differentiates them from other brands of paint.
CW: How did the interior decorative coatings market
perform in 2009 in the U.S.? How does this compare
to 2008? What is your forecast for this market in the
U.S. in 2010 and beyond? What is driving the market,
or hindering it?
O’Neil, Kelly-Moore: In the regions that the Kelly-Moore Paint
Company markets its products, we have realized a reduction in
sales of interior decorative coatings as compared to the same
period 2008. There is no question that the decrease in sales was
a result of the economic climate we have all experienced during the year of 2009, but more specific, new housing starts of
were dramatically down, the high rate of foreclosures and how
the credit crisis affected residential or commercial restoration
and/or remolding projects. As far as forecasting the market for
the year of 2010, the economic indicators affecting our industry
are still showing little change.
Weller, Rodda: As with most companies we felt a distinct
change in outlook—and some sales—in 2009 but started
identifying opportunities, protecting investments and shift-
ing our focus early on resulting in a less devastating out-
come. We continue to work closely with various market seg-
ments in accessing needs, services, products and potential
opportunities as well as timelines into production. Since
late October this year we have seen and heard a brighter
tone in the forecast for the coming year. As we watch com-
petitors consolidating and competition heating up we also
see the effects of more of our customers vying for fewer jobs
and diversifying into more market segments to compen-
sate. Rodda has taken steps in the last couple of years to
work on this diversification with trainings, product reviews
and consolidations while keeping our employees working
smart, strong and at our elevated service levels. 2010 will
be another challenge and those that have made the shift in
their paradigms will continue to see improvements and we
plan on being in that group.
CW: What will be the greatest challenge for 2010?
O’Neil, Kelly-Moore: Kelly-Moore’s single greatest challenge for
2010 is the health of our national and regional economies. Our
sales growth and/or product demand will increase as the economy recovers from the current recession. I also believe this to
be true of any of our competitors.
Weller, Rodda: As we see the consolidation of competition, the
lone standout is value—more directly price. We have already
seen it on the contractor end with more companies bidding for
fewer jobs. The manufacturing end of the industry is trimming
the fat and being overly aggressive on quotes.
Autenrieth, Benjamin Moore: The economy will pose the greatest challenge in 2010. If jobs and consumer confidence do not
pick up, it will continue to put downward pressure on the
industry, especially for contractors.
CW: How is the ongoing recession affecting business? How will this year be different from last?
O’Neil, Kelly-Moore: In general, the ongoing recession has negatively affected the health of any company that manufacturers
and distributes products to the construction industry. The year
of 2010 will mirror the difficulties we have all experienced during the year of 2009 unless the credit crisis is alleviated, foreclosures drop dramatically, and the residence housing and commercial building markets rebound significantly.
Weller, Rodda: 2010 looks to be slightly better than 2009 mostly looking towards the end of the year. With one year under our
belts and already tighter than recent memory it will be a time
to focus on efficiencies, consolidate products and rotate inventories to their maximum potential.
Autenrieth, Benjamin Moore: There are signs that things have
bottomed out so we believe 2010 should see the beginning of
industry wide expansion. As our Gennex portfolio of Green
Promise designated products continues to expand and the
focus on environmentally friendly products gains more traction, it ideally positions Benjamin Moore to capture a larger
share of the market as it recovers.
CW: In addition to the negative impact of the recession, are climbing raw material and energy prices
impacting the market? Will this trend continue?
O’Neil, Kelly-Moore: Increases in the cost of raw materials
and energy is the second greatest challenge that the Kelly-Moore Paint Company will face moving into the future. I
would challenge domestic and world producers of raw materials that are utilized by the paint and coatings industry and
the producers of the energy that we all use to manufacture
