Coatings World - November 2014

This market is on the rise thanks to healthy automotive and construction industries.

Catherine Diamond, Associate Editor

The economic downturn of 2008 was notoriously rough on the automotive and construction industries. Plunging sales ;gures and frightening projections were well documented (often). What was less known to the general public, however, was the intrinsic link between these markets and the adhesives and sealants markets. Adhesive and sealant manufacturers suffered alongside Ford and Chrysler, and as such, they are now enjoying a well-deserved, healthy resurgence.

According to Dr. Uwe Bankwitz, Head Corporate Target Market Sealing & Bonding at Swiss company Sika AG, the market for adhesives and sealants grew about 2-4 percent, depending on location.

“Mature markets in North America and Europe grew about 2 percent,” he said. “It grew about 3 to 4 percent in Latin America and about 5 percent in Asia Paci;c. Medium-term, a global growth of about 3 to 4 percent is expected.” Bankwitz said that there are two markets that offer the most opportunity for growth: transportation and construction. “For Sika, transportation (including automotive) and building/construction (new construction, refurbishment, infrastructure improvements) offer the most opportunities for growth, especially after moderate recovery of these markets in North America and Europe. Participation in the stronger growth in emerging markets in Asia and Latin America are of key importance to Sika and are re;ected by investments in new factories.” Henkel, a global provider of adhesives, has also felt the effects of the economic recovery. As such, its Adhesive Technologies business unit posted solid organic sales growth in the second quarter and a very strong increase in adjusted return on sales to 17. 5 percent.