NAICS 325510 Quarterly Industry Report
Paint and Coating Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325510Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325510 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the paint and coating manufacturing sector, drawing on data from the U.S. Census Bureau[5] and EPA[8] volatile organic compound regulatory statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325510 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the paint and coating manufacturing industry.
Industry Definition & Overview
Paint and Coating Manufacturing (NAICS 325510) encompasses establishments primarily engaged in mixing pigments, solvents, and binders into paints and other coatings such as stains, varnishes, lacquers, enamels, shellacs, and water-repellent coatings, as well as manufacturing allied paint products including putties, paint removers, and brush cleaners. According to the U.S. Census Bureau[5], approximately 964 businesses operate across 1,131 establishments, employing nearly 39,500 workers with annual revenue exceeding $27 billion in manufacturing facilities that produce architectural, industrial, and specialty coating products for construction, automotive, aerospace, and general industrial end markets.
Product categories include architectural paints and stains for residential and commercial buildings representing the largest market segment, original equipment manufacturer coatings for automotive and industrial products, industrial maintenance coatings, powder coatings, specialty high-performance coatings for aerospace and marine applications, and wood finishes. The Bureau of Labor Statistics[6] identifies production roles including batch mixing operators managing dispersion mills and blending tanks, color matching technicians using spectrophotometric analysis, quality control chemists performing viscosity and adhesion testing, coating scientists developing new formulations, and packaging line operators filling containers across multiple size formats.
Per the SBA Office of Advocacy[7], the industry includes large multinational paint companies operating national distribution networks alongside hundreds of smaller regional and specialty coating manufacturers serving niche markets. Small and mid-sized producers compete through custom formulation capabilities, technical service expertise, and regional distribution advantages in markets where large national brands may not provide the specialized product support that industrial and commercial customers require.
What's Included in This Industry
- Valuation multiples benchmarked to paint and coating manufacturing operations
- Revenue and EBITDA trends for domestic paint and coatings production
- SBA lending data and financing terms for NAICS 325510 businesses
- Comparable transaction data from recent paint company and coating manufacturer acquisitions
- Industry risk factors including raw material costs, VOC regulations, and housing cycle exposure
- Workforce composition and labor cost benchmarks for coating manufacturing operations
- Regional market analysis covering major paint production and distribution markets
- Capital expenditure benchmarks for dispersion equipment and filling line automation
- Growth projections tied to construction activity and sustainable coating technology adoption
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Paint, Coating, and Adhesive Manufacturing | 3255 |
| NAICS Industry | Paint and Coating Manufacturing | 32551 |
| National Industry | Paint and Coating Manufacturing | 325510 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers producing solvents, plasticizers, and chemical intermediates consumed as raw material inputs in paint and coating formulation processes |
| 325211 | Plastics Material and Resin Manufacturing | Plastics resin manufacturers producing acrylic, alkyd, epoxy, and polyurethane binder resins that serve as primary film-forming components in coating formulations |
| 424950 | Paint, Varnish, and Supplies Merchant Wholesalers | Paint, varnish, and supplies merchant wholesalers distributing manufactured paint and coating products to retail outlets and professional painting contractors |
| 332812 | Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers | Metal coating and nonprecious engraving service providers applying industrial coatings to metal substrates using products manufactured by coating producers |
| 236220 | Commercial and Institutional Building Construction | Commercial and institutional building construction projects consuming architectural paints and specialty coatings for interior and exterior building finishing work |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.4% | 141 |
| 2 | Texas | 9.1% | 103 |
| 3 | Illinois | 6.5% | 74 |
| 4 | Ohio | 6.0% | 68 |
| 5 | Florida | 5.7% | 65 |
| 6 | Pennsylvania | 4.7% | 53 |
| 7 | Michigan | 4.0% | 45 |
| 8 | Wisconsin | 3.7% | 42 |
| 9 | Georgia | 3.6% | 41 |
| 10 | North Carolina | 3.4% | 39 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
88
Total SBA Loans
$59.0M
Total Loan Volume
$671K
Average Loan Size
11 yrs
Average Loan Term
10.09%
Average Interest Rate
496
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Paint and coating manufacturers evaluating SBA financing must consider qualification under the SBA size standards[10] for NAICS 325510, which set the threshold at 1,000 employees for small business classification. The SBA 7(a) loan program[11] supports smaller regional paint manufacturers and specialty coating producers acquiring businesses or financing working capital for raw material inventory, while the CDC/504 loan program[12] provides long-term fixed-rate financing for dispersion mills, tinting systems, filling lines, and warehouse facilities. Lenders evaluate customer diversification across architectural and industrial segments, raw material supplier relationships, and distribution channel stability when structuring paint manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 8 | $28.5M | $3.6M |
| 2 | UMB Bank, National Association | 8 | $10.3M | $1.3M |
| 3 | Dogwood State Bank | 8 | $8.0M | $999K |
| 4 | Citizens Bank | 8 | $3.3M | $418K |
| 5 | The Huntington National Bank | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a paint manufacturer?
Paint and coating manufacturers typically trade at 6x to 10x EBITDA, with branded architectural paint companies commanding higher multiples than commodity industrial coating producers. Per U.S. Census Bureau[5] data, the industry's 964 firms range from large national paint brands to small regional manufacturers valued on customer relationships and distribution networks.
What SBA loan options are available for paint manufacturing businesses?
The SBA[10] sets the small business threshold at 1,000 employees for NAICS 325510. Most regional and specialty paint manufacturers qualify for SBA financing, with 7(a) loans supporting acquisitions and 504 loans financing manufacturing and distribution facility investments.
How do raw material costs affect paint manufacturer profitability?
Titanium dioxide pigment, resin binders, and solvents represent 55% to 65% of manufacturing costs, with titanium dioxide pricing particularly volatile. Per the International Trade Administration[13], global TiO2 supply-demand dynamics and petrochemical-linked resin pricing directly affect paint manufacturer margins.
What environmental regulations affect paint manufacturers?
The EPA[8] regulates paint manufacturing under Clean Air Act VOC emission standards, with increasingly stringent limits driving reformulation from solvent-based to waterborne and high-solids coating technologies. State air quality regulations in California and the Northeast impose additional restrictions on coating VOC content.
What are the growth drivers for paint and coating manufacturing?
Residential and commercial construction activity drives architectural paint demand, while industrial output and automotive production support OEM and maintenance coating consumption. Per the U.S. Census Bureau[5], housing starts and existing home sales serve as leading indicators of architectural paint market demand.
How is technology changing the coatings industry?
Waterborne coatings, UV-curable systems, and powder coatings continue gaining market share as manufacturers respond to VOC reduction requirements. According to the EPA[8], low-VOC and zero-VOC formulations now dominate the architectural paint segment, while industrial markets increasingly adopt powder and radiation-curable coating technologies.
What workforce challenges do paint manufacturers face?
The Bureau of Labor Statistics[6] reports that coating scientists, formulation chemists, and batch manufacturing operators are in demand across the paint industry. Competition from specialty chemical and adhesive manufacturers for trained chemists creates recruitment challenges in the coating formulation sector.
How does consolidation affect the paint industry?
Large paint companies have actively acquired regional manufacturers to expand geographic coverage and product portfolios. Per the U.S. Census Bureau[5], industry concentration has increased through strategic acquisitions, though hundreds of smaller specialty producers continue to compete on custom formulation capabilities and technical service.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]EPA epa.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]International Trade Administration trade.gov
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