Business Plan For Recycled
Paint Workgroup
June 29 and 30, 2004
Washington D.C.
Team Members













Heidi Sanborn, Facilitator PSI
Scott Cassel, PSI
Lorraine Segala, Amazon Environmental
Kathy Marsh, CIWMB
Roberta Kunisaki, CIWMB
Dave Darling, NPCA
Dan Burgoyne, CA DGS
Robert Wendoll, Dunn-Edwards
Wayne Gjerde, MN Office of Environmental Assistance
Walter LeClerc, Kelly Moore
Robert Stetson, Kelly Moore
Dave Nightingale, WA Dept. of Ecology/Northwest P.S. Council
Jim Quinn, Metro Regional Government, OR
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
2
Elements of Business Plan

1.
2.
3.
Draft Business Plan for Recycled Paint that
Makes Product Mainstream
Develop performance specifications by application
(hiding power, wear resistance).
Review composition of recycled paint and propose
maximum levels of metals, VOCs, and prohibited
materials, and minimum post-consumer content.
Develop marketing plan for both latex and oil based
paints:



Identify possible export markets
Develop brand identity
Develop model state procurement policy
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
3
Group Research





Reviewed outline of Business Plan (SBA)
Reviewed existing procurement specifications
Reviewed composition of recycled paint and
VOC limits
Reviewed existing markets
Call with U.S. EPA and Office of the Federal
Environmental Executive (OFEE) regarding
procurement
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
4
What Have We Learned?




Business Plans are for a specific business, not
an industry, and include financial data.
What we really want is a Recycled Paint
Performance and Marketing Plan.
There is difference between testing for paint
characteristics and setting standards for them.
More research needed to determine whether
standards necessary to market paint.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
5
What Have We Learned?




Recycled paint can also be low in VOCs.
Different opinions of VOC limit that should be
set for recycled paint.
Increasing federal procurement of recycled
paint will be a labor intensive marketing
project.
There may be a different approach needed to
market recycled paint to federal and state
agencies.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
6
Elements of Recycled Paint
Performance and Marketing Plan


Proving recycled paint performance.
Marketing recycled paint in five major
markets:
1.
2.
3.
4.
5.
Do-it-yourselfers (DIYers)
Government (state and federal)
Contractors
Export
Non-Profits
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
7
Key Assumptions
of Recycled Paint to be Marketed




Marketing latex paint only.
Minimum 50% post-consumer recycled
content.
Products will be top-coat and primer.
Products will be interior and exterior.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
8
Key Assumptions
of Recycled Paint to be Marketed



Products meet certain ASTM or other
standards.
Branding is important to market recycled
paint.
Consider all possible markets.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
9
Marketing to DIYers and Contractors

Nationally, 60% of latex paint is applied to
residences.





2/3 by DIYers
1/3 by Contractors
DIYer/Contractor primary motivation is price.
Quality is important but specifications are not
what homeowners look for.
Providing performance testing results and
providing testimonials of those who have used it
are effective.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
10
Marketing to DIYers/Contractors
continued….



Professional labels and brochures
convey the impression of quality.
Provide information on the recycling
process – breeds confidence in product.
Highlight attributes of recycled paint.

High solids content, versatile, and low
VOCs from off-gassing.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
11
Marketing to Government







Assuming 5% of latex sales is to govt. and
50% of latex sold to govt. could be recycled
paint, market potential is (in gallons/year):
1.5 million
CA govt
220,000
MN govt
290,000
MA govt
Total State Market = 12.8 million
Total Federal Market = 5.3 million
Total Potential Govt. Market = 18 mill
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
12
Marketing to State Government





Model state procurement policy.
Boiler plate contract language that specifies
recycled paint.
Improve dissemination of government bids
for recycled paint.
Training of government procurement officials.
Training of government contract managers on
contract enforcement.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
13
Marketing to State Government



Reporting paint purchases by agency
annually.
How to find recycled paint producers.
Inclusion of green procurement (e.g.,
paint) in job descriptions.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
14
Marketing to Federal Government







Thousands of buying points – trend to outsource.
Centralized purchasing, enforcement, or tracking is
impossible.
Dissemination of information across the federal
government is difficult.
Contractors want to buy paint as they need it at local
stores.
Even with specs in contracts, GSA is not overseeing
contractors – no enforcement.
Feds primarily concerned with indoor air quality - buying
low VOC paint supercedes buy recycled requirement.
Most important way to increase sales to feds is to increase
availability at local outlets.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
15
Marketing to Federal Government

Suggestions from Fed. Govt. Reps.






Call meeting with GSA to discuss 100% acrylic latex
requirement, model contract language, enforcement of
existing rules.
Develop centralized list of sellers of recycled paint by state,
region, city.
Ensure recycled paint producers put information on
websites as to where contractors can buy it.
Focus marketing to major GSA regions.
Hold meetings with individual agencies.
Focus on largest purchasers in federal government
(Navy, Army Corp. of Engineers)
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
16
Marketing to Export and
Non-Profits

Exports



Some anecdotal information but did not pursue
due to lack of resources
Determined that large quantities must be available
for export to be viable.
Non-Profits


Could be contacted directly via usual marketing
channels
Put on-hold due to lack of resources and low
volumes.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
17
Branding

Why Brand?






Consumers need a way to quickly identify recycled paint no
matter who makes it.
Brand and quality are intertwined.
If brand name is recommended, it would be
voluntary.
Customers have brand loyalty.
Possible Brand Names: Renaissance Paint, Tough
Paint, Rough & Tough Paint.
Possible pilot project – Hold focus groups to
determine accurately what name would increase
product sales.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
18
Proposed Next Steps

Recycled Paint Performance and
Marketing Plan



Develop annotated table of contents.
Develop work plan, timeline, and
budget.
Determine process for hiring
contractor to develop Plan.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
19
Proposed Next Steps
Hold meeting with GSA for Federal Paint
Procurement






Ask about 100% acrylic latex requirement.
Ask about model contract/bid language.
Ask about specifications on VOCs.
Meetings with federal agencies on how
to market recycled paint.
Develop list of recycled paint
manufacturers and post on websites.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
20
Proposed Next Steps

Summarize research conducted on
state procurement specifications
and policies.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
21
Draft Federal Guide for Green
Construction Specifications


Released for 60-day public comment period
http://www.wbdg.org/design/greenspec
Provides guidance for federal building
project managers to meet various mandates
as established by statute and Executive
Orders, as well as LEED, EPA, and DOE
program recommendations.
PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
22
Draft Federal Guide
“Generally prohibit recycled content for
interior paints and primers” (although
this is just a guide and unenforceable)
 “Generally call for use of low VOC
paints”
Question: Does the Dialogue want to
provide comments as a whole or from
the business plan subgroup?

PSI Paint Product Stewardship Dialogue
Washington DC July 29-30, 2004
23