Wood
The
Coatings
Market
Wood coatings manufacturers continue to face a struggling housing market and
economic woes. Will 2012 offer an improvement?
Wood coating manufacturers are reporting that they continue to be challenged by the economic downturn and the resulting housing slump. It is undeniable that
2011 was another tough year for the wood coatings market, but
manufacturers are expressing optimism for the coming year.
“The reality is that the stain business is tied to the economy
and housing market,” said Rob Sheehan, director of stain and
primer segments, Benjamin Moore. “If people aren’t getting loans
to build new decks or redo their house it impacts our sales.”
The exterior stain business is also very dependent on the
weather. A lot of rain hurts the season while a dry season helps.
In spite of some of these odds, Benjamin Moore said it is expe-
riencing a measure of success due to a robust product portfolio
and focused selling efforts.
While stain maker Minwax sees some optimism, not much
has changed since last year. “We see consumers settling into this
‘new normal’ where their home improvement decisions are in-
formed by tepid economic conditions, relatively high unemploy-
ment and a very weak housing market,” said Jacquelyn Ferrara,
director of marketing, Minwax, Sherwin-Williams Wood Care
Products. “They continue to focus on smaller projects that either
give them a sense of aesthetic renewal, or keep their home in
good shape, rather than greatly improving the value of their
home.”
Uptick in smaller DIY projects
While it is true that more people are putting off costly home renovations, consumers are undertaking smaller, more affordable
DIY projects.
“This situation continues to compel consumers to undertake
small- to mid-sized projects, which can bode well for the wood
coatings market; wood can often be refreshed with a new coat-
ing without committing to a huge budget,” Ferrara said. “Con-
struction, especially for new homes, continues to struggle.
Homebuyers are ‘downsizing the dream,’ and buying smaller
homes that require investment, which in turn is creating more
DIYers who can use the ease and low cost of various types of
wood coatings to personalize their homes and spaces.”
Thompson’s Water Seal reported a positive outlook for 2012,
in part because of pent up demand from 2011, which was par-
tially attributed to inclement weather. “If you thought weather
www.coatingsworld.com
February 2012
