Abstract
Demand to grow more than 3% annually through 2011
US demand for wood protection coatings and preservatives is forecast to increase 3.1 percent per year to $3.2 billion in 2011, despite a challenging market environment. Continued weakness in the key siding market is prompting coating and preservative manufacturers to place greater emphasis on growing applications such as flooring and cabinets. In addition, demand will benefit from a shift in the product mix to higher value items, steady production of pressure treated lumber and solid levels of construction-related repair and improvement spending. Nevertheless, a decline in housing starts and deceleration in residential building spending will limit aggregate gains.
In markets such as siding, and windows and doors, wood has sustained substantial losses to alternative materials, in particular plastics, due to a range of factors, including relatively frequent maintenance requirements and environmental concerns over the products used in the wood preservation process. However, opportunities for growth still exist based in part on the favorable qualities of wood (e.g., high aesthetic and insulating value), and protective coatings and preservatives will play an important role in future market success.
Environmental concerns impact shift in product mix
A shift in product mix to higher value formulations will occur in both coatings and preservatives, mainly due to environmental issues. Concerns over the release Reliable analysis from Freedonia China team; details at www.freedoniagroup.com of VOCs during the coating process have initiated a gradual switch to more environmentally friendly formulations. Concerns over the environmental impact of certain preservative raw materials -- arsenic, for example -- spurred producers of chromated copper arsenate (CCA), the dominant preservative in treated lumber, to voluntarily withdraw their product from decking and other residential uses as of December 2003. Alkaline copper quaternary and copper azole are the successors to CCA, both of which maintain a higher pricing structure than CCA. However, third generation wood preservatives, primarily centered around all-organic formulations that do not contain arsenic, chromium or copper, are beginning to surface on the marketplace. In addition to all-organic preservatives, borates and organometallics will also likely post favorable gains through 2011.
Study coverage
It presents historical demand data for 1996, 2001 and 2006 as well as forecasts for 2011 and 2016 by wood protection product, application and market. This study also reviews trends, treatments and materials in the wood industry, considers market environment factors, evaluates company market shares and profiles 36 US industry competitors.
Table of Contents
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
- General
- Macroeconomic Environment
- Demographic Trends
- Population
- Household Formation
- Consumer Income & Spending
- Construction Trends
- Construction Expenditures
- Construction Stock
- Building Construction
- Residential Building Construction
- Housing Outlook
- Housing Stock
- Residential Floor Space
- Improvement & Repair
- Nonresidential Building Construction
- Improvement & Repair
- Residential Building Construction
- Nonbuilding Construction
- Manufacturing Outlook
- Market Trends
- Pricing Trends
- Regulatory & Environmental Issues
- Volatile Organic Compounds
- CCA
- Timber Harvesting & Other Environmental Issues
- Solid Waste Recycling
- International Activity
III. WOOD INDUSTRY OVERVIEW
- General
- Lumber
- Wood Product Trends
- Wood Treatment Trends
- Competitive Materials
- Plastics
- Other Materials
IV. PRODUCTS
- General
- Coatings
- Demand by Application & End Use
- Demand by Type
- Stains
- Paints
- Sealers
- Primers
- Other Wood Coatings
- Preservatives
- Demand by Application
- Demand by Type
- Metallic Compounds
- Alkaline Copper Quaternary
- Chromated Copper Arsenate
- Copper Azole
- Organometallic
- Other Metallic Compounds
- Nonmetallic Compounds
- Creosote
- Pentachlorophenol
- Other Nonmetallic Compounds
- Metallic Compounds
V. APPLICATIONS
- General
- New Demand
- Maintenance Demand
- Siding
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Residential
- Nonresidential
- Decking
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Residential
- Nonbuilding
- Nonresidential
- Furniture
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Windows & Doors
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Flooring
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Fencing
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Cabinets
- Industry Outlook
- Wood Protection Coatings & Preservatives Demand
- Other Applications
- Landscaping Products
- Railroad Products
- Utility Poles
- All Other
VI. MARKETS
- General
- Building Construction
- Residential Construction
- Nonresidential Construction
- Nonbuilding Construction
- Other Markets
VII. INDUSTRY STRUCTURE
- General
- Market Share
- Coatings
- Sherwin-Williams
- Imperial Chemical Industries
- Valspar
- Azko Nobel
- Benjamin Moore
- RPM
- Masco
- Preservatives
- Chemical Specialties
- Arch Chemicals
- KMG Chemicals
- Osmose
- Koppers
- Coatings
- Competitive Strategies
- Mergers & Acquisitions
- Cooperative Agreements
- Marketing & Distribution
- Research & Development
- COMPANY PROFILES
- Akzo Nobel NV
- Albemarle Corporation
- Arch Chemicals Incorporated
- BASF AG
- Becker (Wilhelm) AB
- Behr Process Corporation, see Masco Corporation
- Benjamin Moore & Company, see Berkshire Hathaway
- Berkshire Hathaway Incorporated
- Bruder (MA) & Sons Incorporated, see Sherwin-Williams
- California Products Corporation
- Chemcraft International Incorporated
- Chemical Coatings Incorporated, see RPM International
- Chemical Specialties Incorporated, see Rockwood Specialties Group Incorporated
- Color Wheel Paint Manufacturing Company Incorporated, see Professional Paint Incorporated
- Deft Incorporated
- Duckback Products Incorporated, see Professional Paint
- DuPont (EI) de Nemours
- Duron Paints and Wallcoverings, see Sherwin-Williams
- Dutch Boy Group, see Sherwin-Williams Company
- Flecto Company Incorporated, see RPM International
- Flex Bon Paints, see Sherwin-Williams Company
- Flood Company, see Akzo Nobel NV
- Frazee Industries Incorporated, see Professional Paint
- Fuller (HB) Company
- Gemini Coatings Incorporated
- General Paint Limited, see Professional Paint
- Guardian Protection Products Incorporated, see RPM International Incorporated
- Huarun Paints Holdings Company Limited, see Valspar
- ICD Coatings SA, see Chemcraft International
- ICI Paints North America, see Imperial Chemical Industries plc
- Imperial Chemical Industries plc
- Insl-x Products Corporation
- IVM srl
- Johnson (SC) & Son Incorporated
- Kelly-Moore Paint Company Incorporated
- KMG Chemicals Incorporated
- Kop-Coat Incorporated, see RPM International
- Koppers Arch Wood Protection Limited, see Arch Chemicals Incorporated
- Koppers Holdings Incorporated
- Kwal-Howells Incorporated, see Professional Paint
- Lonza Group Limited
- Lubrizol Corporation
- Martin Senour Company, see Sherwin-Williams Company
- Masco Corporation
- Masterchem Industries LLC, see Masco Corporation
- Mautz Paint Company, see Sherwin-Williams Company
- Merichem Chemicals & Refinery Services, see Merichem
- Merichem Company
- Minwax Company, see Sherwin-Williams Company
- Modern Masters Incorporated, see RPM International
- Mohawk Finishing Products, see RPM International
- Monarch Paint Company, see PPG Industries
- Osmose Holdings Incorporated
- Paint America, see Kelly-Moore Paint Company Incorporated and Sherwin-Williams Company
- Parker Paint Manufacturing Company Incorporated, see Professional Paint Incorporated
- Porter Paints, see PPG Industries Incorporated
- PPG Industries Incorporated
- Pratt & Lambert Paints, see Sherwin-Williams Company
- Professional Paint Incorporated
- Reilly Industries Incorporated, see Vertellus Specialties
- Rio Tinto Group
- Rockwood Specialties Group Incorporated
- Rohm and Haas Company
- Royal DSM NV
- RPM International Incorporated
- Sartomer Company Incorporated, see Total SA
- Sherwin-Williams Company
- Sico Incorporated, see Akzo Nobel NV
- Spectra-Tone Paint Corporation, see PPG Industries
- Thompson' s Company, see Sherwin-Williams Company
- Timber Treatment Chemicals, see Rockwood Specialties Group Incorporated
- Total SA
- Tremco Incorporated, see RPM International
- US Borax Incorporated, see Rio Tinto Group
- Valspar Corporation
- Vertellus Specialties Incorporated
- Viance LLC, see Rockwood Specialties Group Incorporated and Rohm and Haas Company
- Westfield Coatings Corporation, see RPM International
- Wood Protection Company, see Osmose Holdings
- Zinsser Company Incorporated, see RPM International
- Other Companies in the Wood Protection Industry
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
- Summary Table
SECTION II -- MARKET ENVIRONMENT
- 1 Macroeconomic Indicators
- 2 Residential Population
- 3 Personal Consumption Expenditures
- 4 Construction Expenditures
- 5 Construction Stock
- 6 Building Construction Expenditures
- 7 Residential Building Construction Expenditures
- 8 Housing Indicators
- 9 Housing Stock by Age & Exterior Type
- 10 Existing Floor Space
- 11 Residential Improvement & Repair Activity
- 12 Nonresidential Building Construction Expenditures
- 13 Nonresidential Construction Improvement & Repair Expenditures
- 14 Nonbuilding Construction Expenditures
- 15 Manufacturers' Shipments
- 16 Wood Protection Coatings & Preservatives Market, 1996-2006
- 17 Wood Protection Coatings & Preservatives Pricing
SECTION III -- WOOD INDUSTRY OVERVIEW
- 1 Lumber Supply & Demand
- 2 Wood Product Shipments
- 3 Wood Preservation Revenues
SECTION IV -- PRODUCTS
- 1 Wood Protection Coatings & Preservatives Demand
- 2 Wood Coatings Demand by Formulation
- 3 Wood Coatings Demand by Application & End Use
- 4 Wood Coatings Demand by Type
- 5 Wood Stain Demand by Application & End Use
- 6 Wood Paint Demand by Application & End Use
- 7 Wood Sealer Demand by Application & End Use
- 8 Wood Primer Demand by Application & End Use
- 9 Other Wood Coating Demand by Application & End Use
- 10 Wood Preservatives Demand by Formulation
- 11 Wood Preservatives Demand by Application
- 12 Wood Preservatives Demand by Type
- 13 Metallic Compound Demand by Type & Application
- 14 Alkaline Copper Quaternary Demand by Application
- 15 Chromated Copper Arsenate Demand by Application
- 16 Copper Azole Demand by Application
- 17 Organometallic Demand by Type & Application
- 18 Other Metallic Compound Demand by Type & Application
- 19 Nonmetallic Compound Demand by Type & Application
- 20 Creosote Demand by Application
- 21 Pentachlorophenol Demand by Application
- 22 Other Nonmetallic Compound Demand by Type & Application
SECTION V -- APPLICATIONS
- 1 Wood Protection Coatings & Preservatives Demand by Application & End Use
- 2 New Demand for Wood Protection Coatings & Preservatives
- 3 Maintenance Demand for Wood Protection Coatings & Preservatives
- 4 Siding Demand by Material
- 5 Siding Applications for Wood Protection Coatings & Preservatives
- 6 Residential Siding Applications for Wood Protection Coatings & Preservatives
- 7 Nonresidential Siding Applications for Wood Protection Coatings & Preservatives
- 8 Decking Demand by Material
- 9 Decking Applications for Wood Protection Coatings & Preservatives
- 10 Furniture Shipments
- 11 Furniture Applications for Wood Protection Coatings & Preservatives
- 12 Window & Door Indicators
- 13 Window & Door Applications for Wood Protection Coatings & Preservatives
- 14 Hard Surface Flooring Shipments by Material
- 15 Flooring Applications for Wood Protection Coatings & Preservatives
- 16 Fencing Supply & Demand
- 17 Fencing Applications for Wood Protection Coatings & Preservatives
- 18 Cabinet Shipments & Materials
- 19 Cabinet Applications for Wood Protection Coatings & Preservatives
- 20 Other Applications for Wood Protection Coatings & Preservatives
SECTION VI -- MARKETS
- 1 Wood Protection Coatings & Preservatives Demand by Market
- 2 Building Construction Market for Wood Protection Coatings & Preservatives by Application, End Use & Sector
- 3 Residential Building Construction Market for Wood Protection Coatings & Preservatives by End Use
- 4 Nonresidential Building Construction Market for Wood Protection Coatings & Preservatives by End Use
- 5 Nonbuilding Construction Market for Wood Protection Coatings & Preservatives by Application & End Use
- 6 Other Markets for Wood Protection Coatings & Preservatives by Application & End Use
SECTION VII -- INDUSTRY STRUCTURE
- 1 US Wood Coatings & Preservatives Sales by Company, 2006
- 2 Selected Acquisitions & Divestitures
- 3 Selected Cooperative Agreements
LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
- 1 New Housing Units by Exterior Type
- 2 Year of Construction of Housing Stock, 2006
- 3 Housing Stock by Exterior Type
- 4 Wood Protection Coatings & Preservatives Market, 1996-2006
- 5 World Wood Protection Coatings & Preservatives Demand, 2006
SECTION IV -- PRODUCTS
- 1 Wood Coatings Demand by Application, 2006
- 2 Wood Coatings Demand by Type, 2006
- 3 Wood Preservatives Demand by Application, 2006
SECTION V -- APPLICATIONS
- 1 Wood Protection Coatings & Preservatives Demand by Application, 2006
- 2 New Demand for Wood Protection Coatings & Preservatives, 2006
- 3 Maintenance Demand for Wood Protection Coatings & Preservatives, 2006
SECTION VI -- MARKETS
- 1 Wood Protection Coatings & Preservatives Demand by Market, 2006
SECTION VII -- INDUSTRY STRUCTURE
- 1 US Wood Coatings & Preservatives Market Share, 2006
- 2 US Wood Coatings Market Share, 2006
- 3 US Wood Preservatives Market Share, 2006

