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U.S. Construction, Paper and Film, and Transportation Adhesive Markets
Frost & Sullivan, July 2001
End User Demand Sustains Growth Despite New Industry Challenges
U.S. adhesive markets are facing a range of challenges, from environmental pressures to move toward solvent-free formulations to rising raw material costs. Nevertheless, commercial demand for adhesives will remain strong and revenues will continue to multiply. New technologies will be a ket factor in triggering growth over the forecast period. The development of smart adhesives, which have specific performance criteria beyond bonding, will stimulate interest and sales among customers.
This study examines the markets for adhesives in three of its major end-user industries: construction, paper and film, and transportation. By evaluating drivers and restraints, identifying challenges and opportunities, and providing expert revenue forecasts for each segment, this analysis gives its users an essential tool for staying ahead of the competition.
Flexible Pricing Solutions Necessary for Market Leaders
Profit margins are being squeezed by rising raw material costs and higher operating expenses, says the author. The adhesive industry has been significantly impacted with climbing prices for petrochemicals and olefin-related raw materials, such as vinyl acetate and polypropylene. In the past, adhesives firms have either absorbed price increases or passed them along to the consumer. However, in an increasingly concentrated supply chain environment, it will be more difficult to shift price increases to buyers. This challenge affects both small and large adhesive participants, states the author. Smaller adhesive firms may have an advantage in overcoming this obstacle because they have greater flexibility in pricing decisions. This analysis tracks pricing trends and the impact of changes in raw material segments on this industry, helping you anticipate and overcome hurdles that may lay ahead.
Environmental Regulations Require Manufacturers to Develop New Formulations
Environmental and safety concerns have led to stringent regulations to reduce emissions from volatile organic compounds (VOCs), says the author. Several laws, including the Clean Air Act and the Toxic Substances Control Act, will spur adhesives manufacturers to adjust their product formulations and change the processes in which they dispose of waste materials. With its in-depth discussions of environmental issues and the effects they will have on the adhesive industry, this report enables participants to develop a plan that complies with requirements and maximizes market profitability.
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