Benjamin Moore CEO on the housing market and consumer demand

Summary

Benjamin Moore CEO Dan Calkins discusses housing market headwinds, rising raw material costs due to oil prices, and consumer trading down in mid-tier paint. He outlines cost containment measures and cautious optimism for the second half of the year.

• Housing churn is a key driver of Benjamin Moore's demand and is currently strained by affordability and mortgage rates.
• 70% of mortgages are below 6%, discouraging homeowners from moving.
• Oil prices are impacting raw material costs, though Benjamin Moore has contracts providing some protection.
• The company is seeing force majeure notices from suppliers and is managing costs internally.
• Consumers are trading down within the mid-tier product range due to less discretionary income.
• Benjamin Moore is pulling back on discretionary spending, capital spend, and pausing some initiatives.
• The CEO hopes the administration is right that the pressure is a blip, but worries if it persists.