A Report on Wood Varnish Manufacturing in the US Industry

Published on January 18, 2012 at 5:02 AM

By Cameron Chai

According to IBISWorld, there was a considerable reduction in the revenue for the Wood Varnish Manufacturing industry, at a yearly average rate of 1.1% to $3.3 B in 2007.

In five years from now, the revenue for the Wood Varnish Manufacturing industr,y is expected to increase. The marketing of wood varnish is supported and encouraged by the high demand from the construction and manufacturing sectors.

In view of the increasing price of raw materials, profit margins are constrained. Increase in the price of resin was followed by high crude oil prices, at an annualized rate of 3.9% throughout the previous five years. IBISWorld predicts that margins are being reduced to 8.4% in 2012, following decline by 9.6% in 2007. Decrease in profit accounts for the consolidation of certain some industry, as the number of firms reduces at an annualized rate of 4.2% to 109 in the five years to 2012.

There is an average market share concentration within the Wood Varnish Manufacturing industry. Altogether, the four key players possess approximately 43% of industry revenue. Marketing of the key players have an accelerated increase compared to revenue. Major players include Sherwin-Williams, PPG Industries and Masco Corporation. RPM Industries and Valspar also experience significant market shares. The revenue growth has been maintained as these companies possess popular brand names, thereby increasing their industry presence. Major players account for higher market shares due to consolidation within the industry. Considerable demand has been taken over by large manufacturers and suppliers as weak manufacturers quit the industry.

Source: http://www.ibisworld.com/

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