United States. According to IBISWorld, there is a considerable reduction in profits in the wood varnish manufacturing industry, from an average range of 1.1% to 3.3% recorded in 2007. However, experts expect the profits of this sector to increase in the next five years.
One of the causes of the possible increase in the figures has to do with the growing demand from sectors such as construction and manufacturing.
Due to growth in commodity prices, profit margins have been limited. The increase in the price of resin was followed by high crude oil prices that presented an annualized rate of 3.9% over the last five years.
IBISWorld predicts that in 2012 margins are shrinking to 8.4%, following a decline of 9.6% in 2007. The decline in profit accounts for the consolidation of certain industries, such as the number of companies reduced to an annualized rate of 4.2% in five years to 2012.
According to the study, this market in the United States has a group of major players (Sherwin-Williams, PPG Industries, Masco Corporation, RPM Industries and Valspar), which own 43% of the industry's revenue. The growth in the revenues of these companies foresees a much more positive outlook for the wood varnish sector.
