Specialist
Former VP at The Sherwin-Williams Co
Agenda
- Sherwin-Williams’ (NYSE: SHW) competitive landscape outlook
- Key end markets and strategic expansion forecast, focusing on aftermarket autos and positioning vs PPG (NYSE: PPG) and Axalta (NYSE: AXTA)
- Product and strategy differentiation, highlighting technology gains and geographic developments through 2017 Valspar acquisition
- Outlook – competitive threats and leadership assessment, highlighting strategic priorities
Questions
1.
Could you summarise the demand environment, challenges and opportunities for paints and coatings providers?
2.
What do you think is driving the lag in coatings relative to paints?
3.
How is Sherwin-Williams positioned? What are its overall strengths and weaknesses?
4.
Previous Interviews indicate Sherwin has emerged as a key competitor to Axalta and PPG in aftermarket autos [see Axalta – Coatings & Refinish Outlook – 7 December 2021]. Could you break down the company’s positioning here?
5.
You highlighted Sherwin’s distribution strategy and some of its advantages. You also suggested there’s potential for a more D2C model via its existing geographic footprint. How does that differentiate from Axalta and PPG, and why would that be advantageous?
6.
Let’s assume Sherwin retains no appetite to enter the OEM [original equipment manufacturer] segment. How can it make up for that? Is that where paint-mixing technology comes into play, and if so, how is Sherwin positioned in that regard?
7.
Could you elaborate on your characterisation of PPG and Axalta’s go-to-customer models as historically being a bit clunky?
8.
I don’t think Sherwin has historically used large consolidators as an aftermarket autos distribution network. Are there associated challenges, or should that integrate fairly seamlessly with its distribution strategy in architectural paint shops and similar areas?
9.
How can Sherwin build the aftermarket autos business further? Does it have a foot in the door due to pricing with the large distributors such as Service King?
10.
Do you think Sherwin will mainly steal share from Axalta and PPG as it grows the aftermarket autos business?
11.
Could you elaborate on the value brands that Sherwin brought over via its Valspar acquisition in 2017?
12.
Would you like to share any additional thoughts on aftermarket autos?
13.
Pre-pandemic, there was chatter around a potential PPG acquisition of Axalta. What are your thoughts on that possibility, now things have settled a bit? Could PPG hypothetically re-engage?
14.
Could you break down the likely strategic rationale for Sherwin’s exclusive partnership with Lowe’s?
15.
You referenced the Valspar acquisition putting Sherwin in Europe and Asia. Could you elaborate on the opportunities there?
16.
How would you grade packaged coatings’ attractiveness relative to other segments? How does it compare on profitability or organic growth?
17.
What do you think were Sherwin’s biggest technology gains with the Valspar acquisition?
18.
Are there any further key topics you’d like to raise on Sherwin’s positioning or competitive threats?
19.
Having covered PPG historically, the architectural side isn’t necessarily a point that comes up often. Do you think there’s less strategic focus on the architectural side, and hence CAPEX and innovation dollars are going to other places?
20.
What are your thoughts on Sherwin’s leadership team, based on your experience? What are their strengths, weaknesses and key focuses?
