Demand to reach 2.5 billion pounds in 2006
Demand for sealants and caulks in the US is forecast to increase 3.5 percent per year to 2.5 billion pounds in 2006. The market will benefit from a moderately favorable outlook in the key durable goods sector, where shipments are forecast to recover from their recessionary 2001 base, offset by a slower outlook for the US construction industry. Gains in value demand will benefit from solid volume demand, as well as a continued shift in product mix to higher performance sealants and caulks, such as silicones, polyurethanes and urethane acrylic formulations.
Construction markets to remain dominant
In the motor vehicle market, sealant usage will get a boost from an acceleration in passenger car production, as well as design trends featuring more glass per vehicle, since sealants are an integral component of glass installation.
Accelerated defense spending will provide opportunities for sealants and caulks in the manufacture of military equipment. Demand for sealants and caulks in the industrial sector will benefit from a stronger capital spending environment as companies invest more heavily in new plants and equipment. Although durable goods markets will see the most rapid gains, the construction industry will remain the largest outlet for sealants and caulks, accounting for more than half of total demand in 2006. Though a slowdown is expected in new building construction activity, continuing architectural trends toward more luxurious and energy efficient homes will partially offset a deceleration in the number of new homes built by raising per unit consumption of sealants.
In addition, nonbuilding construction markets, which were quite weak for most of the 1990s, will be boosted by the Transportation Equity Act for the 21st Century (TEA-21), which authorizes federal spending programs for highways, bridges and mass transit projects through 2003. This piece of legislation should provide opportu- nities for sealants and caulks in the short-term, primarily in applications such as sealing expansion and horizontal joints in bridges, parking garages, playgrounds, sidewalks and aircraft terminals, plus sealing cracks in pavement and asphalt.
Study coverage
Details on these and other findings are available in Sealants & Caulks, a new Freedonia study. It presents historical data through 2001 plus forecasts to 2006 and 2011 for demand in pounds and current US dollars by major type and market. Market share is also presented for key suppliers, and profiles are provided for 33 producers and raw material suppliers.
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