CHEMICALS
Paints and Coating
World's Most Productive Companies
Competing Through Innovation in Paints & Coatings
The Paints and Coatings group encompasses manufacturers of decorative and industrial coatings, paints, sealants, and adhesives. Processes include resin formulation, pigment dispersion, rheology control, and packaging for retail and OEM channels. The sector is closely tied to construction, infrastructure spending, automotive manufacturing, and general industrial activity such as specialty protective coatings. Companies have seen a rollercoaster of demand from 2019 to 2024. COVID-19 shutdowns spiked DIY projects and paint sales, while factory shutdowns and maintenance cycles plummeted industrial and automotive coating demand. The demand in 2021 and 2022 was strong across the automotive and industrial segments, while the housing market recovered and renovation activities increased. As companies faced sharp increases in raw material costs and supply chain shortages, rising inflation and interest rates in 2023 led to a softening of the housing and renovation boom, which in turn affected paint demand, while the automotive rebound continued.
The competitive environment comprises a mix of global players and regional specialists, heavily influenced by raw material prices (such as petrochemical solvents, pigments, and resins) and environmental regulations (for VOC emissions and heavy metals), which has led to a shift toward water-based or high-solids formulations.
Top 100 World's Most Productive Companies - Paints and Coating
Productivity Snapshot
The Paint & Coating segment followed the typical post-COVID arc—strong in 2021–2022, followed by a slight contraction thereafter. Longer-term trends were among the worst in the Chemical industry, as productivity declined by 18.7% from 2004 to 2024.
- The last six years resulted in an average drop of 9.1% across this peer group.
- From 2020 to 2022, growth has been essentially flat, with productivity dropping 3.3%.
- Last year, four out of seven companies experienced a decline in productivity of 0.6% on average.
- Sherwin-Williams Co. earned its position within the LNS 2025 World’s Most Productive Companies with a 4.4% productivity loss compared to the 50.8% productivity drop its peers experienced over six years. The company’s operating model ensured a culture of continuous improvement and strong value chain integration, optimizing operations, batch processes, logistics, and retail stores. Investing in strategic alignment, workforce planning, and data-driven decision-making allowed the company to adjust quickly to shifting DIY demand and industry downturns with scaled agile demand sensing, improved inventory management, and increased waste reduction.
