Supplement to Commerce Reports

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INTRODUCTION

The almost total absence of paint-manufacturing establishments in the West Indies makes the territory an excellent market for imported materials. That the American manufacturers and exporters of paints, pigments, and varnishes realize the importance of the field is evidenced by the fact that one-eighth of their foreign shipments during 1923 were destined to this region. The total value of these products exported in that year to the West Indies and Bermuda amounted to $2,542,876.

It is believed that this report, discussing as it does the preferences of the various markets and the extent to which they use paint materials, will be of assistance to American manufacturers who desire to increase their sales in or enter the West Indian markets.

MAY, 1925.

JULIUS KLEIN, Director,

Bureau of Foreign and Domestic Commerce.

(I)

PAINTS. PIGMENTS, AND VARNISHES IN THE WEST INDIES

A world-wide distribution has been established by American exporters of paints, pigments, and varnishes. Shipments were made during 1923 to 100 of the 115 geographical sections of the world, each section representing an individual country, colony, or group. Individual items ranged from as low as $5 to Bulgaria to $2,517,662 for Canada, with a total for all of $16,551,725.

The importance of the West Indies as a market for these materials is evidenced by the fact that one-eighth of the total American shipments was destined to this small group of islands, the total area of which is about twice that of the State of Pennsylvania. Carbon and lampblack, which are included in the above total exports. do not have an extensive sale in the West Indies; therefore, omitting these items and our Canadian trade, which is generally considered as domestic, it is interesting to note that the group of islands took 21 per cent of the remainder. It should be borne in mind that this compilation does not include shipments to Porto Rico, which is a customs district of the United States. Shipments to that island are in excess of $400,000 annually.

The favorable growth of the American paint trade in the West Indies since 1913 is pictured in the following table:

VALUE OF EXPORTS OF PAINTS, PIGMENTS, AND VARNISHES FROM THE UNITED STATES TO WEST INDIES AND BERMUDA

From the foregoing table it is seen that the trade of the United States in some of the markets is exceedingly small. However, these lesser markets are included in this report in order that American manufacturers may thoroughly understand the situation and not commit themselves to too great an outlay in markets where, such expenditures are unwarranted. At the same time greater sales

efforts, together with educational advertising, would undoubtedly result in winning a larger share of the existing trade.

Although brief reference is made in the text to advertising methods, many American firms have not been very keen in the matter of foreign advertising, but have been inclined, rather, to place greater dependency upon salesmen, demonstrators, and other direct agencies. It would not be profitable in some of the smaller places to expect a sales representative to devote his entire efforts to a paint line, but, on the other hand, it might be possible to secure good results from a sales representative also handling hardware and construction materials.

Trade lists frequently include the names of agents who are already representing manufacturers. The manufacturer who intends to enter the export field must therefore use prudence and for obvious reasons not present his entire proposition in detail to those who might properly be termed his competitors. It is advisable to subject prospective representatives to trials of accomplishment, for the successful introduction and sale will be largely dependent on the initiative, ingenuity, and activity of the selling agent or distributer. Caution must also be taken to pick representatives with the highest possible standing, making use in this respect of the credit reports of recognized credit agencies and banks.

Paints are used in the West Indies as much for protection as for appearance. The need for protection against natural deterioration is greater in this region than in most parts of the United States because of such climatic conditions as extreme heat, copious rains, salt air, etc. In addition there are the ravages of insects and fungus growths to contend with.

These conditions require special compositions in some sections and several American manufacturers have developed suitable materials upon which they have built up an excellent trade. Other manufac turers have attained good results by concentrating their efforts on the marketing of a few of their specialties. It therefore behooves manufacturers to study their markets carefully and push the sale of the products that they know will render service to the consumer.

The United States supplies a large share of the paint requirements of some of the islands, while in others the competition of Canadian and British manufacturers is severely felt. The preferential tariff in the British possessions in favor of British and Canadian goods is a handicap to American exporters. However, the natural advantage of a shorter haul is an important factor in our favor, frequently permitting lower transportation charges as well as a saving in the time required for delivery of an order. This time saving enables the merchant to carry a minimum stock and at the same time know that he can quickly replace it.

The division of foreign tariffs of the bureau has supplied the current tariff rates on paint materials used throughout the text. These rates are, of course, subject to change.

CUBA

The Republic of Cuba, composed of Cuba proper and adjacent islands, has an area of 44,164 square miles, length about 780 miles, average width 50 to 60 miles. At the nearest point to the United States Cuba is about 90 nautical miles from Key West, Fla. The island