Coatings World - September 2013

U.S. demand for paint and coatings is forecast to rise 4.2 percent annually to 1.5 billion gallons in 2017, valued at $30.6 billion. This will be a notable improvement over the volume declines recorded during the 2007-2012 period, supported by an improving economic outlook and increased consumer confidence. In particular, advances will be driven by a strong rebound in construction activity, which will propel demand for architectural paint and for metal building component coatings. These and other trends are presented in “Paint & Coatings,” a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The architectural market is the leading outlet for paint and coatings and will grow at an above average pace through the forecast period. The residential segment will offer the best opportunities for growth, as the country recovers from the housing crisis that greatly reduced demand for residential architectural paint, particularly for new housing. Demand for interior paint will grow faster than demand for exterior paint. Increasing environmental awareness and greater consumer concern regarding indoor air quality will spur demand for low- or no-volatile organic compound (VOC) products, especially those that are marketed as having low odor or being odor-free.

Paint and coatings demand in manufacturing markets is expected to expand at a healthy pace through 2017. The metal building components segment is projected to achieve particularly rapid gains, promoted by the increased utilization of prefabricated metal building systems in nonresidential construction applications due to the functionality and labor cost savings these systems provide. Furniture coatings will also account for a sizable share of new demand between 2012 and 2017, benefiting from rapid gains in new housing completions, which will boost demand for home furnishings.

Maintenance and specialty coatings will remain the smallest market through 2017. Demand in the industrial maintenance sector will be supported by expanding nonresidential improvement and repair activity, while growth in the marine coatings segment will stem from increased output of marine equipment and the need to maintain large tankers, ships, and cruise liners, as well as offshore drilling rigs and platforms. In the auto refinish sector, rising motor vehicle sales will provide opportunities, although gains will be held down somewhat by the trend toward fewer vehicle accidents, and the improved quality of OEM (original equipment manufacturer) automotive coatings.

Report on the European
Sealants Market

IAL Consultants published “Overview of
the European Sealants Market.” Taking
into account the 15 countries of Western
Europe and eight countries of Eastern
Europe, the total demand for sealants is
estimated at approximately 533,860 tons
in 2012. The market is relatively stable,
showing a slight growth rate of 1.5 per-
cent p.a. over the forecast period to 2017.
More than half of the market is shared
by silicones and polyurethanes. Silicones
occupy almost 40 percent of the market,
followed by polyurethanes with almost
17 percent share. The third largest prod-
uct group is acrylics with 10 percent of
the total demand.

The market demand for sealants is related directly to the situation in the construction industry. Construction of new buildings and the amount of renovation works are forecast to grow at similar slow rates from 0.3 to 0.6 percent p.a. over the next few years in the regions of both Western and Eastern Europe. The new residential construction is increasing faster than residential renovation, and the situation is reversed for nonresidential construction.

High growth in construction activity has been identified for the Austrian, German, Dutch, Romanian, Russian and Turkish markets. Among the declining markets are the Irish, Italian, Portuguese, Spanish, UK, Czech, Hungarian, Slovakian and Slovenian markets. Other country markets are stable or show little growth.

The situation in the demand for glazing sealants depends largely on the status of the construction industries. One of the main drivers of the market for glazing sealants is new European regulations on creating energy efficiency in buildings (EU Energy Performance of Buildings Directive (EPBD)). The regulations have had a particular impact on renovation and refurbishment projects.

Commonly window manufacturers use butyls as primary sealants, and polysulphides, polyurethanes and silicones as secondary sealants. Percentage-wise, consumption of these technologies var-ies from region to region. All of these technologies are predicted to grow over the forecast period. The highest growing product in this segment is hot-melt butyl sealants.