Adhesives and Sealants Market Update - As the economic downturn continues, demand for adhesives and sealants remains soft

As the years approaches the end, the adhesives and sealants industry in the USA has endured and experienced another very tough and challenging year. The three major industries and markets where adhesives and sealant are mainly used are industrial sectors, the automotive industry and the housing market. As these markets continue to struggle during the economic down turn, many manufacturers of adhesives and sealants are reporting very soft demand for their products.

There is also significant overcapacity in the industries concerned, from suppliers to manufacturers to customers, so things will remain fiercely competitive even during a recovery.

To make the situation worse, the global reduction in manufacturing output among major industrial customers in particular in Western Europe and North America significantly impacted the development of the specialty adhesives and surface treatment segment. This is particularly so in the case of the automotive and electronics sectors, and also the metals industry, with the associated markets having shrunken by up to 20%.

Similar negative impact on the manufacture of adhesives and sealants has been the housing market and as a result, the slow sale of existing homes has curtailed professional activity in the use of adhesives and sealants due to a slowdown in the turnover of homes.

On the brighter side, during tough economic times, many consumers often put off hiring contractors for projects and opt instead to save money and to undertake these projects themselves. Hence the DIY segment offers the most opportunity in this type of market.

As regards the future, a recently published study shows U.S. demand for specialty adhesives to be projected to expand 4.4% annually to $3 billion in 2013, with volume reaching 705 million pounds. Although specialty adhesives are a small component of the overall adhesive industry in terms of volume, representing approximately five percent of U.S. adhesive demand in 2008 they are more significant with respect to market value due to their relatively high prices.

Among specialty adhesive product types, cyanoacrylates and similar adhesives are expected to achieve the fastest gains in market value through 2013, mainly due to rapid growth in the medical applications.