| Show BUSINESS M s. s FURTHER GROWTH AHEAD FOR PAINT INDUSTRY Paint sales are able to resist downturns In the construction industry better than sales of most other building products largely because much of the spending on paint is for maintenance and renovation of older structures Nevertheless any marked decline in general industrial activity is bound to restrict paint consumption to some degree Hence last years year's slump Inthe in inthe inthe the national economy played a large part in restricting paint shipments to about the same level as that seen in 1973 With economic recovery expected during the latter half of this year however demand for paint should pick up from such markets as housing furniture and appliances with prospects for paint manufacturers manufacturers generally favorable beyond the near term Over the years the industry has shown quite steady if unspectacular growth Trade vs Industrial Sales There are two broad ca categories for paint sales trade and industrial The first consists consists consists con con- of paint sold to consumers contractors and professional painters for new construction and for repainting refinishing and maintenance The second industrial consists of coatings sold to manufacturers for application application application ap ap- ap- ap during the stages of producing finished articles Until recently trade sales had been more important in the industry's growth but just about half of the 35 billion of total U. U S S. S paint sales is now accounted for by industrial sales Experts feel that in the future volume of industrial coatings will surpass that of consumer paints New Methods Concern over the effects of oC ingredients on human health has helped change paint technology A federal law was enacted in 1973 limiting the amount of lead in new paint Also the paint industry has been under mounting pressure to change formulations in such sucha a way as to lessen the pollution problems stemming from traditional paint manufacture Solvent-based Solvent paints have been mostly changed to water water- based in sales to consumers for homes and apartments but according to the National Paint and Coatings Association more than 90 percent of industrial finishes are traditional polluting formulations In the future more industrial finishes are expected to be water-based water providing greater safety in manufacture and in ap ap- ap- ap Alternatives To Painting Another reason that new paint technologies are being stepped up is the increasing use of building materials such as aluminum asbestos and vinyl siding plus other products requiring little or no finishing The term long-term impact of such replacement materials on the sale of paints is a matter of deep concern for the paint manufacturers For the present however since far more paint is used to repaint old houses than in new construction construction construction con con- substitute materials will have only a limited impact on paint sales Many Paint Producing Companies There are more than 1500 firms involved in the manufacture of paint but five corporations Sherwin Sherwin- Williams du Pont Industries industries Industries In In- Corporation and Celanese Corporation probably account for 50 percent of total volume The Research Department of Babson's Dabson's Reports recommends the common stock of pt Industries Industries In In- for purchase at this thus time is well known for its line of Pittsburgh paints and it is also one of the nations nation's largest makers of float and sheet glass Its chemical division is an important producer of heavy chemicals such as chlorine and Further is the leading supplier of nt fiber glass cord conI to the tire industry The company's com corn pany's future futuro earnings base has been considerably enlarged in recent years through an aggressive capital spending program and prospects for the long term are bright Readers interested in a free detailed report on Industries Industries Industries In In- may write to Babson's Reports Wellesley Hills Mass |
