Adhesives, Sealants, and Other Related Products: 2004/2005 Market Outlook (With Long-Term Forecasts Through 2013)

TABLE OF CONTENTS

SECTION I: EXECUTIVE OVERVIEW

Analysis and Summary:

The Market Environment 1

Industry Consolidation 1

U.S. Manufacturers'  Sales 2

The End-Use Factor 2

Growth in Foreign Markets 3

Tables:

U.S. Manufacturers'  Sales of Adhesives, Sealants, and Related Products 4

U.S. Manufacturers'  Sales of Adhesives, Sealants, and Related Products, by Major Product Category 5

Projected Sales Growth in the Market for Adhesives, Sealants, and Related Products, by Major Product Category (Graph) 6

Distribution of End-Use Markets for Adhesives, Sealants, and Related Products (Graph) 7

SECTION II: THE MARKET FOR ADHESIVES AND SEALANTS

Analysis and Summary: 

Overview 8

Leading Categories 8

Help Through a Coalition 9

Outlook 10

Tables:

U.S. Manufacturers'  Sales of Adhesives and Sealants: Total 11

By Type 12

Product Mix 13

Sales Growth in the Adhesives and Sealants Market, by Type 14

Projected Sales Growth in the Adhesives and Sealants Market, by Type (Graph) 15

U.S. Manufacturers'  Sales of Synthetic Resin and Rubber Adhesives: Total 16

By Type 17

Product Mix 18

U.S. Manufacturers'  Sales of Nonstructural and Structural Caulking Compounds and Sealants: Total 19

By Type 20

Product Mix 21

U.S. Manufacturers'  Sales of Natural-Base Glues and Adhesives: Total 22

By Type 23

Product Mix 24

SECTION III: THE MARKET FOR PRESSURE-SENSITIVE AND GUMMED PRODUCTS

Analysis and Summary:

 Overview 25

Pressure-Sensitive Products 26

Gummed Products 26

Outlook 27

Tables:

U.S. Manufacturers'  Sales of Pressure-Sensitive and Gummed Products 28

U.S. Manufacturers'  Sales: Pressure-Sensitive vs. Gummed Products 29

Product Mix of U.S. Manufacturers'  Sales: Pressure Sensitive vs. Gummed Products 30

Sales Forecasts for the Pressure-Sensitive and Gummed Products Market (Graph) 31

U.S. Manufacturers'  Sales of Pressure-Sensitive and Gummed Products: By Type 32

Product Mix 33

SECTION IV: NEW PRODUCT INTRODUCTIONS

Introduction 34

Selected New Product Introductions in the Market for Adhesives, Sealants,  and Related Products 35

SECTION V: PRICING TRENDS FOR ADHESIVES, SEALANTS, AND RELATED PRODUCTS

Analysis and Summary:

Overview 38

Adhesive and Sealant Prices 39

Selected Raw Material Prices 40

Tables:

Producer Price Trends:

Adhesives and Sealants 41

Synthetic Resin and Rubber Adhesives 42

Synthetic Resin and Rubber Adhesives, by Type 43

Caulking Compounds and Sealants 45

Natural-Base Glues and Adhesives 46

Pressure-Sensitive Products 47

Major Raw Materials, by Type 48

SECTION VI: END-USE MARKETS FOR ADHESIVES, SEALANTS, AND RELATED PRODUCTS

Part A: Overview

Analysis and Summary:

Major End-Use Markets 50

New Technologies for Established Markets 50

The Domestic Economy 51

Tables:

U.S. Gross Domestic Product 52

U.S. Gross Private Domestic Investment 53

U.S. Industrial Production Index 54

U.S. Disposable Personal Income 55

U.S. Per Capita Disposable Personal Income 56

U.S. Personal Consumption Expenditures 57

U.S. Per Capita Personal Consumption Expenditures 58

Consumer Confidence Index 59

Part B: Demand in the Packaging Sector

Analysis and Summary:

Overview 60

Food and Beverage Containers 60

New Technologies for Packaging Adhesives 61

Tables:

U.S. Manufacturers'  Sales:

Metal Food and Beverage Cans 64

Glass Food and Beverage Containers 65

Rigid Plastic Food and Beverage Containers 66

Paperboard Food and Beverage Containers 67

Corrugated and Solid Fiber Boxes 68

Set-Up Paperboard Boxes 69

Fiber Cans and Drums 70

Paper and Plastic Bags 71

Coated and Laminated Packaging Papers and Films 72

Part C: Demand in the Construction Sector

Analysis and Summary:

Overview 73

Housing Market Benefits from Falling Mortgage Rates 74

Consumer Demand 74

New Formula for Installation Adhesives 75

Brand Familiarity of Caulks and Sealants 75

Tables:

Interest Rates Charged by U.S. Banks 77

Privately Owned Housing Starts:

By Type 78

Distribution, by Type 80

By Region 81

Distribution, by Region 83

Privately Owned Housing Units Completed:

By Type 84

By Region 86

Average Sale Prices of New Houses Sold in the U.S., by Region 88

Average Square Feet of Floor Area in New Privately Owned One-Family Housing, by Region 89

Number of Bedrooms in New Single-Unit Housing in the U.S.:

U.S. 91

Northeast 92

Midwest 93

South 94

West 95

Sales of New vs. Existing Single-Family Homes 96

New Single-Family Home Sales, by Region 97

Existing Single-Family Home Sales, by Region 98

Number of Completed Multifamily Buildings 99

Existing Apartment, Condo, and Co-Op Sales, by Region 100

New Manufactured Homes, by Region 101

Total Improvement Expenditures for All Residential Properties, by Region 102

Value of New Construction in the U.S.:

Total 103

By Type 104

Private Construction, by Type 105

Private Residential Building Construction, by Type 106

Private Nonresidential Building Construction, by Type 107

Public Construction, by Type 109

Public Building Construction, by Type 111

U.S. Manufacturers'  Sales of Softwood Plywood 113

U.S. Manufacturers'  Sales of Hardwood Plywood 114

U.S. Manufacturers'  Sales of Particleboard 115

U.S. Manufacturers'  Sales of Ceramic Floor and Wall Tile 116

Brand Familiarity of Caulks and Sealants, by Region 117

Part D: Demand in the Transportation Sector

Analysis and Summary:

Overview 118

The Practical Alternative 119

Adhesives in the Aerospace Industry 120

Tables:

U.S. Motor Vehicle Production 121

Material Consumption in a Typical Family Vehicle, by Type 122

Industry Sales of Complete U.S. Aircraft, by Type 123

Net New Orders, Net Sales, and Backlog Orders for Aerospace Companies 124

U.S. Manufacturers'  Sales of Railroad Equipment 125

Part E: Demand in the Manufacturing Sector

Analysis and Summary:

Overview 126

Electronic Computing Equipment 126

Furniture 127

Disposable Diapers 127

Tables:

U.S. Manufacturers'  Sales:

Electronic Computing Equipment, by Type 128

Wood Household Furniture 129

Wood Office Furniture 130

Envelopes 131

Disposable Paper Diapers 132

U.S. Production of Nonrubber Footwear 133

Part F: Demand in the Consumer Market

Analysis and Summary:

Overview 134

Home Improvement Expenditures 134

Consumer Demographics 135

Tables:

Distribution of Expenditures on Owner-Occupied Properties:

Maintenance and Repairs (Graph) 137

Interior Additions (Graph) 138

Interior Alterations (Graph) 139

Outside Additions and Alterations (Graph) 140

Replacements (Graph) 141

Average Annual Consumer Expenditures on Maintenance and Repair Services and Commodities:

By Region 142

By Age 143

By Occupation 144

SECTION VII: MEDIA AND ADVERTISING

Analysis and Summary:

Overview 146

Media Expenditures 146

New Post-it Notes 147

Online Catalogs 147

Tables:

Total Media Expenditures for Adhesives, Sealants, and Related Products 149

Media Expenditures for Adhesives, Sealants, and Related Products, by Company and Brand 150

SECTION VIII: FOREIGN TRADE

Analysis and Summary:

Overview 151

U.S. Imports 151

U.S. Exports 152

Developing Markets 153

Tables:

Foreign Exchange Rates 154

Fixed Euro Conversion Rates 155

U.S. Apparent Consumption of Adhesives, Sealants, and Related Products 156

U.S. Balance of Trade for Adhesives, Sealants, and Related Products 157

U.S. Imports of Adhesives, Sealants, and Related Products, by Major Product Category 158

Product Mix of U.S. Imports of Adhesives, Sealants, and Related Products, by Major Product Category (Graph) 159

U.S. Imports of Adhesives and Sealants:

By Type 160

Product Mix 161

U.S. Imports of Pressure-Sensitive and Gummed Products:

By Type 162

Product Mix 163

Top 20 U.S. Import Sources for Adhesives, Sealants, and Related Products 164

Dollar Market Shares of the Top 20 U.S. Import Sources for Adhesives, Sealants, and Related Products 165

Leading U.S. Import Sources for Adhesives, Sealants, and Related Products (Graph) 166

U.S. Imports of Adhesives, Sealants, and Related Products, by Country of Origin:

Casein Glues 167

Fish Glues 169

Inedible Gelatin and Animal Glues Valued at Less Than $0.88/kg 171

Inedible Gelatin and Animal Glues Valued at $0.88/kg or More 173

Other Glues of Animal Origin (Except Casein), Not Elsewhere Specified or Included 175

Glues Based on Starches 177

Products for Use as Glues or Adhesives for Retail Sale, Net Weight 1kg or Less, Not Elsewhere Specified or Included:

Animal and Casein Glues (Except Fish) 179

Other Products for Use as Glue 181

Adhesives Based on Rubber or Plastics 183

Other Products for Use as Adhesives 185

Self-Adhesive Flat Shapes, Rolls 20cm Wide or Less:

Pavement-Marking Tape 187

Tapes with Light-Reflecting Surfaces 189

Filament-Reinforced Tape 191

Electrical Tape 193

Transparent Tape, Not Over 55m x 5cm 195

Transparent Tape, Not Over 55m Long, Not Elsewhere Specified or Included 197

Other Flat Shapes, Not Elsewhere Specified or Included 199

Self-Adhesive Flat Shapes, Rolls Over 20cm Wide:

Light-Reflecting Flat Shapes 201

Reflectorized Sheeting 203

Filament-Reinforced Tape 205

Electrical Tape 207

Transparent Tape 209

Other Flat Shapes, Not Elsewhere Specified or Included 211

Gummed or Adhesive Paper and Paperboard:

Pressure-Sensitive 213

Not Pressure-Sensitive 214

Pressure-Sensitive Paper and Paperboard Labels, Unprinted 215

Gummed or Adhesive Paper (Except Labels):

Pressure-Sensitive 217

Not Pressure-Sensitive 218

Adhesive Tape, Not Over 20cm Wide, Rubberized Textile Fabrics 220

U.S. Exports of Adhesives, Sealants, and Related Products, by Major Product Category 222

Product Mix of U.S. Exports of Adhesives, Sealants, and Related Products, by Major Product Category (Graph) 223

U.S. Exports of Adhesives and Sealants:

By Type 224

Product Mix 225

U.S. Exports of Pressure-Sensitive and Gummed Products:

By Type 226

Product Mix 227

Top 20 U.S. Export Destinations for Adhesives, Sealants, and Related Products 228

Dollar Market Shares of the Top 20 U.S. Export Destinations for Adhesives, Sealants, and Related Products 229

Leading U.S. Export Destinations for Adhesives, Sealants, and Related Products (Graph) 230

U.S. Exports of Adhesives, Sealants, and Related Products, by Country of Destination:

Casein Glues 231

Other Glues of Animal Origin, Not Elsewhere Specified or Included 233

Glues Based on Starches 235

Products for Use as Glues or Adhesives for Retail Sale, Net Weight 1kg or Less, Not Elsewhere Specified or Included:

Other Products for Use as Glues or Adhesives 237

Adhesives Based on Rubber or Plastics 239

Other Products for Use as Adhesives 241

Self-Adhesive Flat Shapes, Rolls 20cm Wide or Less:

Light-Reflecting Flat Shapes 243

Filament-Reinforced Tape 244

Electrical Tape 246

Transparent Tape, Not Over 55m x 5cm 248

Transparent Tape, Not Over 55m Long, Not Elsewhere Specified or Included 250

Other Flat Shapes, Not Elsewhere Specified or Included 252

Self-Adhesive Flat Shapes, Rolls Over 20cm Wide:

Materials with Light-Reflecting Surfaces 254

Reflectorized Sheeting 256

Filament-Reinforced Tape 258

Electrical Tape 260

Transparent Tape 262

Other Flat Shapes, Not Elsewhere Specified or Included 264

Gummed or Adhesive Paper and Paperboard:

Pressure-Sensitive 266

Not Pressure-Sensitive 267

Pressure-Sensitive Paper and Paperboard Labels, Unprinted 268

Gummed or Adhesive Paper (Except Labels):

Pressure-Sensitive 270

Not Pressure-Sensitive 271

Adhesive Tape, Not Over 20cm Wide, Rubberized Textile Fabrics 273

SECTION IX: INDUSTRY STRUCTURE AND ECONOMICS

Analysis and Summary:

Overview 275

Industry Economics 275

Employment Trends 276

Capital Expenditures 277

Manufacturing Facilities 277

Pressure-Sensitive Products 278

Gummed Products 278

Explanation of Terms 280

Tables:

The Adhesives and Sealants Industry:

Operating Structure 286

Gross Operating Margin 287

Value Added by Manufacture 288

Vertical Integration Index 289

Employment Structure 290

Total Labor Costs 291

Average Hourly Earnings of Production Workers 292

Cost of Living Index for Production Workers 293

Labor Productivity 294

Indexes of Real Labor Productivity 295

New Capital Expenditures 296

Plant vs. Equipment Expenditures 297

Ending Inventories 298

Materials Consumed, by Type 299

Total Number of Establishments 300

Total Number of Establishments (Graph) 301

Number of Employees, Payroll, and Number of Establishments, by Employment Size Class and by State 302

Number of Establishments, by Employment Size Class (Graph) 304

The Pressure-Sensitive Products Industry:

Operating Structure 305

Employment Structure 306

The Gummed Products Industry:

Operating Structure 307

Employment Structure 308

The Plant Manager' s Workbook:

How to Use This Section 309

Gathering Your Data 310

Developing Your Ratios 311

How Does Your Plant Stack Up? 312

SECTION X: COMPANY PROFILES

Introduction 317

Significant Acquisitions in the Adhesives, Sealants, and Related Products Industry 318

Financial Profile of Adhesives and Sealants Manufacturers:

Total 319

Sorted by Sales 320

Sorted by Assets 321

3M Company:

Overview 322

Products 322

Manufacturing 323

New Post-it Notes 323

Outlook 324

Financial Summary and Analysis 325

Applied Extrusion Technologies, Inc.:

Overview 326

Products 326

Manufacturing 327

Two-Phase Growth Strategy 328

Financial Summary and Analysis 329

Avery Dennison Corporation:

Overview 330

Pressure-Sensitive Adhesives and Materials 330

Consumer and Converted Products 331

Manufacturing 331

News 332

Outlook 332

Financial Summary and Analysis 333

Bemis Company, Inc.:

Overview 334

Flexible Packaging 334

Pressure-Sensitive Materials 335

Distribution 335

Manufacturing 336

Restructuring 336

Expansion of Adhesives Subsidiary 337

Outlook 337

Financial Summary and Analysis 338

Borden Chemical, Inc.:

Overview 339

North American Forest Products 339

North American Performance Resins Group 340

International 340

Distribution 340

Manufacturing 341

News 341

Outlook 342

Financial Summary and Analysis 343

The Dow Chemical Company:

Overview 344

Dow Automotive 344

Polyurethanes and Polyurethane Systems 345

Distribution and Manufacturing 345

Outlook 346

Financial Summary and Analysis 347

Elmer' s Products, Inc. 348

H.B. Fuller Company:

Overview 349

Global Adhesives 349

Full-Valu/Specialty 350

Manufacturing 350

Outlook 351

Financial Summary and Analysis 352

Henkel Loctite Corporation:

Overview 353

The Henkel Group 353

Global Acquisitions Expand Adhesive Business 354

Hercules Incorporated:

Overview 355

Performance Products 355

Engineered Materials and Additives 356

Manufacturing 357

Outlook 357

Financial Summary and Analysis 358

ITW Devcon:

Overview 359

Products 359

Illinois Tool Works 360

Financial Summary and Analysis 361

Nashua Corporation:

Overview 362

Specialty Paper Products 362

Label Products 363

Manufacturing and Distribution 363

Outlook 364

Financial Summary and Analysis 365

National Starch and Chemical Company:

Overview 366

Products 366

Manufacturing 367

News 367

Outlook 367

Imperial Chemical Industries PLC 368

Nordson Corporation:

Overview 369

Products 369

Manufacturing 370

News 370

Outlook 371

Financial Summary and Analysis 372

Pacer Technology:

Overview 373

Distribution 373

Anchor-Tite Wins Again 374

Outlook 374

Financial Summary and Analysis 375

PPG Industries, Inc.:

Overview 376

Coatings 376

Outlook 377

Financial Summary and Analysis 378

Red Devil, Inc. 379

Rohm and Haas Company:

Overview 380

Adhesives and Sealants 380

Distribution 381

Manufacturing 381

Outlook 382

Financial Summary and Analysis 383

Tyco Plastics and Adhesives:

Overview 384

Adhesive Products 385

Outlook 385

Tyco International Ltd. 385

Financial Summary and Analysis 387

W.F. Taylor Company, Inc. 388

APPENDIX I: ASC' S "BUILDING THE INDUSTRY"  PROGRAM

Overview 389

Accomplishments 389

Outlook 390

APPENDIX II: DIRECTORY OF SELECTED U.S. MANUFACTURERS OF ADHESIVES, SEALANTS, AND RELATED PRODUCTS

Introduction 392

Directory of Selected U.S. Manufacturers of Adhesives, Sealants, and  Related Products 393