The market is unforgiving now and excuses for not meeting growth targets are less tolerated. The common American belief has been that high-growth industries deliver superior performance to mature industries, like paints and coatings. But this belief may be misguided. As our industry learns to take full advantage of digital technologies, paint companies will have an equal chance to create superior value for their shareholders. Since new technologies are creating additional business opportunities for everyone, it is likely that performance levels will improve in mature industries.
Technology is a growth enabler.
In addition to technological advances, acquisitions are an important growth tool for paint companies. Each of these approaches has been popular. Exceptional revenue and margin growth in the mature paints and coatings industry is within reach for strategically focused companies. The private and public capital markets will take particular note of those peak performers in the industry in light of their recent disappointment with tech stocks. During the past few years, investors have seen some remarkable swings in returns on their investments.