Regional Variation in the Architectural Coatings Market - It Is Not One Market!
The United States Census Bureau identifies four macro regions (see Figure 1). These are the Northeast, South, Midwest and West. Recent studies by Orr & Boss, a Plymouth, MI-based consulting firm for the coatings industry, have revealed that there is significant variation in both customer segmentation and channel of distribution preferences across the census regions. Furthermore, these studies reveal that demographic, economic and end-use factors drive this variation.
The South and the West lead the U.S. in the amount of architectural painting performed by professionals, with nearly 70% of all architectural coatings revenues derived from professional painters. The Midwest, conversely, has the highest percentage of revenues from DIY customers. This variation in customer distribution is driven by demographic and economic factors. The U.S. as a whole is growing much more rapidly in the South and West (see Figure 4). The rapid growth in these regions fuels new construction of residential and commercial properties. By and large, the DIY customer is not involved in new construction. It is the professional painter who services this end-use segment.