Jones-Blair Case Analysis.docx - MAR4804 Professor Yap Name Danielle Martinez-Gibson Panther ID 3329035 Jones-Blair Case Analysis How might one

Jones-Blair Case Analysis.docx - MAR4804 Professor Yap Name...

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MAR4804 Professor: Yap Name: Danielle Martinez-Gibson Panther ID: 3329035 Jones-Blair Case Analysis How might one characterize the architectural painting coatings industry and Jones Blair's trade area? Architectural painting coatings is the biggest segment in the paint industry earning a 43% total industry dollar sales. Architectural coatings consist of general-purpose paints, varnishes, and lacquers used on residential, commercial, and institutional structures, sold through wholesalers and retailers, and purchased by do-it-yourself consumers, painting contractors, and professional painters. US Sales estimate architectural paint coatings and sundries (brushes, rollers, paint removers and thinners, etc.) to be $12 billion-plus in 2004 with long-term sales growth projected in the range of 1 to 2 percent per year. However, slow sales growth, the necessity for ongoing research and development, and recent compliance with governmental regulations have fueled merger and acquisition activity in the U.S. paint industry which has caused for more mergers and fewer companies in the Architectural Coatings Segment. Presently, the number of paint companies is declining at a rate of 2 to 3 percent per year. In addition to this, the architectural coating segment faces competition from alternative materials, such as aluminum and vinyl siding, interior wall coverings, and wood paneling; as well as higher- quality products developed by paint manufacturers to reduce the amount of paint necessary per application and the frequency of repainting. Due to readily available technology and difference in paint formulations associated with regional climatic needs, a small number of regional paint manufacturers, such as Jones-
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