STATE OF THE ADHESIVES AND SEALANTS INDUSTRY: A Recovery is in Sight
As 2004 came to an end, one couldn't help but wonder whether adhesive and sealant manufacturers let out a sigh of relief and collectively expressed their "good riddance" to one of the most challenging years in recent history. While top-line growth confirmed our economic recovery, the bottom line crumbled under the pressure of rapidly escalating raw materials. Will 2005 offer hope and prosperity?
Capacity utilization in manufacturing is on the rise from 20-year lows - at approximately 75% - but is well below the pre-recession levels of mid-80 percentiles. Manufacturing production is somewhat sluggish and is expected to remain weak for the next several months. If oil prices continue their decline, stronger growth should resume in late 2005.