This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Painting & Coating Industry (PCI) logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Painting & Coating Industry (PCI) logo
  • Magazine
    • Current Issue
    • Digital Edition
      • PCI Digital Editions
      • PCI China
    • Buyers' Guide
    • Coatings Supplier Handbook
    • Editorial Advisory Board
    • How to Submit Editorial
    • Subscribe
  • Topics
    • Additives
    • Distributors/Services
    • Equipment
    • Market Reports
    • Pigments
    • Resins/Polymers
    • Moody’s Coatings Conundrums
    • Powder Coating Kitchen
    • TiO2 Insider
  • Technologies
    • Adhesives
    • Architectural Coatings
    • Industrial Coatings
    • Nanotechnology
    • Powder Coatings
    • Solventborne
    • Special Purpose Coatings
    • UV Coatings
    • Waterborne
  • News
    • Latest News
    • Price Alerts
    • eNewsletter Archive
  • Products
    • New Products
    • Product of the Week
    • Product Spotlight
    • Must See Products and Services
  • Events
    • Calendar of Events
    • Coatings Trends & Technologies
    • Western Coatings Show
    • Powder Coating Summit
  • Resources
    • Additives Guide
    • Blogs
    • Classifieds
    • Global Top 10/ PCI 25
    • Industry Links
    • Online Exclusives
    • PCI Store
    • Student of the Month
    • Supplier Exhibits/Showcases
    • Virtual Supplier Brochures
    • White Papers
    • Sponsor Insights
  • Multimedia
    • Photo Gallery
    • Videos/PCI TV
    • Podcast
    • Webinars
  • Finishing Today
    • Finishing Today
    • Finishing Today Archives
    • Contact Finishing Today
  • EU Today
    • Articles from Europe
    • Calendar of European Events
    • EU Company News
    • EU Industry News
    • EU Names in the News
    • Subscribe for More EU News
  • Contact
    • Contact US
    • Advertise
Home » Marketplace - First Quarter: 2007

Marketplace - First Quarter: 2007

September 1, 2007
Edward Bourguignon
Reprints
No Comments

The Slowdown is Gaining Momentum

The first quarter of 2007 shows a significant decline from the 2006 first quarter. The report for the fourth quarter 2006 indicated a slowdown may be developing.  However, the fourth and first quarters are always the smaller quarters in the year. The extent of the slowdown will become more apparent with the next quarterly results.

The total coatings industry declined 11.3% in volume shipped compared to the 2006 first quarter. Shipment value also declined 3.3%. The slower decline in shipment value indicates that the price of coatings shipped was higher in 2007.

The Architectural Coatings segment declined 14.4% in volume shipped and declined 3.0% in shipment value for the quarter. The downturn in housing starts and resales is having the expected softening of the Architectural segment. Although, by historical standards, the housing market is still operating at a fairly high level, the fact that a downturn has begun should be an early warning sign for the segment.

The Product OEM Coatings segment also showed a sharp decline from the previous year. Shipment volume declined 16.0% and value declined 8.4%. Although this segment is not directly tied to the housing market, it does have ties with the appliance and siding markets where products are precoated for use in and on houses. The slowdown in the automotive industry also impacts the segment directly. With the high cost of fuel, the change in demand for automobiles has caused a sizeable decline in U.S.-manufactured vehicles. The downturn in this segment could be longer lasting than in the Architectural segment.

The Special Purpose Coatings segment is the one positive segment in the industry for the first quarter. Shipment volume increased 32.9% in the quarter while shipment value increased 5.7%. Although this segment is harder to understand than other segments, the results are encouraging (Note: the results for the segment are usually changed when the annual report is published later in the year.) Several factors could account for the increase in this segment’s results; the increase in building repair and maintenance spending, the increase in auto refinish due to the higher number of vehicles on the road and the longer lifespan of cars, plus the increase in highway construction spending. Let’s hope the increase for the first quarter is not reduced in the annual report.

Coatings exports remained at 8.7% of the shipment value, the same as the first quarter in 2006. Imports were considerably lower at 2.2% of shipment value compared to 4.6% last year, a significant reduction in reported imports.

subscribe to pci

Recent Articles by Edward Bourguignon

Stockwatch ― November 2007
Wall Street Stages Rally

StockWatch ― October 2007
No Market Doldrums in August

Marketplace - May 2007
Fourth Quarter and Year - 2006

Third Quarter - 2006
Product OEM Coatings Gather Strength

Edward W. Bourguignon is president of Posintel, Inc. You can reach him at 216/249.6756, or by e-mail at ebourguignon@sbcglobal.net.

Related Articles

Marketplace -- January 2007<br>2006 Second Quarter Sees Continued Growth

Marketplace - May 2007<br>Fourth Quarter and Year - 2006

Marketplace: 2005 - Fourth Quarter and Year End

Third Quarter - 2006<br>Product OEM Coatings Gather Strength

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • eNewsletter
  • Online Registration
  • Subscription Customer Service

More Videos

Sponsored Content What Is Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the PCI audience. All Sponsored Content is supplied by the advertising company. Interested in participating in our Sponsored Content section? Contact your local rep.

Close
Opentime-rheometer
Sponsored By
Clariant

New simple and accessible method successfully tests paint drying behavior

A novel method has been successfully tested to characterize the drying behavior of paint formulas, helping formulators to select the most favourable ingredients to optimize drying behavior of aqueous paints.

Popular Stories

pci1119Hexion-480919874.jpg

Novel 1K and 2K Moisture Curing Vinyl Alkoxysilane Technology

DistributorsServices-126217275.jpg

Palmer Holland Adds Industry Veterans to CASE Sales Team

pci0819-Wab-Lead-900.jpg

A New Agitator Bead Mill You Can Trust

automotive coatings manufacturers

Axalta Releases Automotive Color Popularity Report

IndustryNews-493850587.jpg

Porcupinefish Inspires Superhydrophobic Material

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

PCI Magazine

Which of the following formats have you accessed information on paints and coatings in the last 12 months?
View Results Poll Archive

Products

Increasing the Durability of Paint and Varnish Coatings in Building Products and Construction 1st Edition

Increasing the Durability of Paint and Varnish Coatings in Building Products and Construction 1st Edition

See More Products

PCI holiday card challenge

PCI Magazine

pci december 2019

2019 December

December is our annual Buyers’ Guide, with listings by Product category, as well as by Supplier or Distributor name.

View More Create Account
  • More
    • Reprints
    • List Rental
    • Online Exclusives
    • Coatings Bookstore
    • Blog
    • Market Research
    • Custom Content & Marketing Solutions
    • Want More?
    • Connect
    • Manufacturing Group
    • Privacy Policy
    • Subscribe
    • Survey And Sample

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing