Sherwin-Williams Industry Analysis Essay - 903 Words

Introduction to Sherwin-Williams Two young entrepreneurs and a lot of dedication and drive. That’s how it all began. Henry Sherwin, a native of Cleveland OH and graduate of Western Reserve College, weighed all of his career options and decided to go into business for himself. He pulled all of his resources and bought a stake in Truman, Dunham and Co, a firm that sold painter’s pigments, linseed oil, colors, brushes and other finishing and decorating products. Although this was not high on his list of choices, he saw potential in the industry. It was the post civil war era and Cleveland was experiencing an economic boom. His plan was to develop the market for paint and coatings to not only corporate America, but to the untapped consumer†¦show more content†¦Sherwin-Williams surpassed the $6 billion in sales for the first time in history. Three of their four operating segments grew their sales and operating profits. Sherwin-Williams faced rising raw material costs but still declared a 20 percent increase in quarterly dividends payable to shareholders in 2004. In 2004, annualized yearly raw material costs for the industry increased more than any time in the last decade. This resulted in pressure on their consolidated gross margin. Sherwin-Williams has put forth efforts to offset raw material cost increases through manufacturing efficiencies, higher fixed cost absorption, alternative technologies, tight expense control, and measured price increases. nbsp;nbsp;nbsp;nbsp;nbsp; There were an increased number of contractor sales and architectural paints along with related supplies. An increase in Do-It-Yourself customers has also helped with strong sales growth. The increase in the Do-It-Yourself market resulted in higher sales of paints, wood care products and aerosol products. The services of professional painting contractors were in high demand, and those customers shop at Sherwin-Williams paint stores. These customers continue to shop at the paint stores because of Sherwin-Williams quality products and services which have made their business more successful. Net sales for their Paint Stores segment increased by 14.6 percentShow MoreRelatedThe Sherwin Williams Company, One Of The World s Largest Paint Companies Essay1942 Words   |  8 PagesThe Sherwin-Williams Company is one of the world’s largest paint companies. It is third behind PPG Industries and AkzoNobel in the Fortune 500 list. Some of Sherwin-Williams strengths are relatively high profitability, they have a very strong brand name, they also have a wide area of distribution, as well as creating the reputation of being of high quality and reliable. 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