To quote the ancient Greek philoso- pher Heraclitus: “There is noth- ing permanent except change.”
Although this statement was made more
than two millenniums ago, it is still strongly
relevant today.
The world of architectural coatings is
no different.
As new changes occur in technology, consumer behaviors and engineering, so do the
resulting product offerings. To stay relevant within the marketplace, paint and coatings professionals need to adapt to these
changes by staying on-trend with advancing product improvements in order to serve the needs of their customers.
Today there are three major changes affecting the architectural
coatings industry: changes in the marketplace landscape, changes
in green technology and changes in product development.
Changes in the Marketplace Landscape
The state of the marketplace is helping to drive some of the latest developments in the architectural coatings industry. With a recent upswing in the economy, consumers are once again buying homes, and
with that comes painting and other do-it-yourself (DIY) projects.
In fact, new residential construction starts in September
2015 were nearly 18 percent higher than new construction
starts one year earlier, according to the U.S. Census Bureau and
the Department of Housing and Urban Development. Home
renovation has also been on the upswing and is expected to con-
tinue rising into 2017, according to the Metrostudy Residential
Remodeling Index (RRI). This has led to more new home and
home remodel projects in the U.S. overall, which typically utilize
various architectural coatings products.
In general, consumers also have more disposable income
compared with previous years, increasing the marketplace’s
overall spending power, according to data from the Bureau of
Economic Analysis and IBISWorld. With more disposable income, consumers and professionals are requesting higher-quali-ty, premium and specialty paint and stain products with higher
price points for both interior and exterior projects.
As housing and commercial indicators call for continued
growth, the architectural coatings industry in turn can also be
positively impacted.
Interestingly enough, the buzzworthy millennial generation
is having a strong impact on the overall marketplace as well.
Today there are 13. 3 million households headed by millennials, which is expected to increase to 21. 6 million by 2018.
Millennials are projected to surpass Baby Boomers in their lifetime in terms of income directly correlating with their expected
purchasing power, as reported by the Harland Clarke Group.
With an increase in home purchases and spending power, the
emerging millennial generation is one that coatings manufacturers have been keeping a pulse on for tailored product developments, marketing opportunities and more.
Changes in Green Technology
As government regulations, green certifications and consumer preferences toward environmentally conscious companies continue to
increase, it is important for today’s professionals to be aware of the
A firsthand look at the trends that are impacting new developments for paints, stains
and more.
Architectural
Coatings:
2016 Product and Industry Trends
Dan Passinault,
Associate Director, Innovation, Products and Execution, PPG Architectural Coatings
Dan Passinault
