Consolidation in the Paint Distribution (Jobber) Industry

Editor’s Note: Brad is at NACE this week. This is an excerpt of his article originally published in Aftermarket Business World. Next week Brad will return to discuss the role of private equity in the collision industry.

The paint jobber industry is undergoing significant change. Increasing customer concentration in the collision industry is putting pricing pressure on the entire refinish materials supply chain.

A second round of jobber consolidation is now underway adding competitive pressure within the industry. Adding to these pressures, paint manufacturers are placing ever more start up, technical and back office requirements on jobbers in an attempt to drive efficiency and lower costs. Combined, the result is a jobber industry that is undergoing and will continue to undergo significant change.

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