Jones Blair

I. Situation Analysis

Industry

• Architectural Paint Coatings Industry

• Regional paint manufacturer that focuses on high quality paint in the Dallas-Fort Worth area and the surrounding 11 counties

• Architectural coatings are considered to be a mature market with long-term sales growth projected in the range of 1 to 2 percent per year ( see appendices )

• Industry sources estimated U.S. sales of architectural paint coatings and sundries (brushes, rollers, paint removers, and thinners, etc.) to be $12 billion-plus in 2004. (see appendices exhibit b) NEED FINANCE INFO HERE

• The U.S. paint industry is divided into three broad segments

• 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 (DIY) consumers, painting contractors, and professional painters. Account for 43% of total industry dollar sales.

• Original equipment manufacturing (OEM)….formulated to the industrial buyer specifications and are applied to original equipment during manufacturing. These coatings are used for durable goods such as automobiles, trucks, transportation equipment, appliances, furniture & fixtures, metal containers & building products, and industrial machinery & equipment. Account for 35% or total industry dollar sales.

• Special-purpose coatings….formulated for special applications or environmental conditions, such as extreme temperatures, exposure to chemicals, or corrosive conditions. These coatings are use for automotive & machinery refinishing, industrial construction & maintenance (factories, equipment, utilities, and railroads), bridges, marine applications, off-shore oil rigs, highway & traffic markings, aerosol and metallic paints, and roof paints. Account for 22% of total industry dollars.

Company: Jones * Blair

• Is a privately held corporation that produces...