Paint Maker Behr Rides Fix-Up Wave
By CHRIS CZIBORR
Santa Ana paint maker Behr Process Corp. says it’s seeing the fruits of the refinancing boom as homeowners spend more money fixing up their places.
“With real estate being very strong, people have more equity in their homes,” Behr President Jeff Filley said. “Refinancing is at a peak,people are pulling money out of their homes and renovating.”
As the market has expanded, Filley said Behr has gained on rivals at outlets such as Home Depot Inc.
“Home Depot is doing well because of the nesting trend,” he said.
Behr competes with Cleveland-based Sherwin-Williams Co., Wheeling, Ill.-based Valspar Corp. and London’s Imperial Chemical Industries PLC.
Behr’s growing in part because painting is something most households can afford to do, Filley said.
“The cost of paint is around $20, but the impact and change it can make to one’s house can be pretty dramatic,” he said.
Behr last month opened its sixth Santa Ana production facility: an 80,000-square-foot plant with 60 workers. The company now counts about 600 people in Orange County.
“We’re projecting another 60 to 80 hires in OC over the next year,” Filley said.
Behr doesn’t disclose revenue. Its parent company, Taylor, Mich.-based home improvement products maker Masco Corp., which counted $8 billion in 2001 sales, doesn’t break out Behr revenue. Filley said Behr saw double-digit revenue growth in 2001.
“The (do-it-yourself) business has been resilient both in boom times and during recessionary periods,” Filley said. “When the economy is weak and there are more layoffs, people pick up the paint brush and start changing the look of their homes.”
Masco bought Behr in 1999. From 1947 until then Behr was privately held. Filley said Masco has taken a relatively hands-off approach.
“Masco has been providing support in real estate, legal, accounting and purchasing,” Filley said. “They provide help if we need it.”
There have been management changes: Ronald Lazof resigned as president about a year ago for unspecified reasons and became a Behr consultant. Filley took over the president’s position.
Behr works with Masco’s Antonia, Miss.-based Masterchem Industries Inc. unit, which makes stain block coating products. Behr now is Masco’s biggest operating company and was Masco’s first coatings acquisition,Masco acquired Masterchem in 2000.
