Coatings update: Trends and economic progress in the coatings industry Available to Purchase

Marketing is the name of the game for any manufacturing industry, for it is marketing and sales that make the greatest contribution to “the bottom line”. Thus, the coatings literature abounds with articles on this subject. An interesting one by Willner [Modern Paint and Coatings, 66, June (1976) p. 39] makes the point that new end uses are difficult to come by and, accordingly, growth for a paint company must come either by taking sales away from competitors or by the acquisition of other companies. Willner then proceeds to demonstrate by means of profit and loss statements and balance sheets what the pros and cons are of these alternatives, analysing the results, finally, in terms of a “rewards‐versus‐costs” ratio. All such analyses are, of course, based on certain assumptions. If one is going to acquire a company, it is possible perhaps to make more valid assumptions than it is of the strategy calls for developing a new product to gain market share; for inherent in the technology required for the new products are many variables which frequently cannot be handled quantitatively. Even so, what Willner proposes is an excellent exercise that well‐deserves the attention of managers of coatings companies.