Columns

Editor’s Memo
Predicted Growth in Chemicals Supported by Adhesives

April 17, 2003
/ Print / Reprints /
ShareMore
/ Text Size+
This year’s Material Handbook has been updated and expanded with 75 new categories and their definitions, and a large increase in supplier listings.

A substantial amount of space in this issue is devoted to the second annual edition of our Materials Handbook. This year’s handbook has been updated and expanded with 75 new categories and their definitions, and a large increase in supplier listings. While there may be several reasons for the increased size of the handbook, certainly a recent report on the positive outlook for chemicals in 2003 plays a role.

According to a recent analysis by Consulting Resources Corp. (CRC), Lexington, Mass., a leading consulting firm specializing in the chemical process industries, sales in the U.S. chemical industry will grow by as much as $9 billion in 2003.

Robust housing and auto industries have propped up certain specialty chemicals, such as those used to manufacture adhesives and coatings, as well as a number of commodities. In fact, this has been the first recession in at least half a century that has not been coupled with a drop in housing starts, according to the CRC analysis.

“By the second half of 2003, the uncertain near-term outlook for the U.S. chemical industry will be very clearly positive,” says Roger Shamel, CRC’s president, “with several segments leading the pack.” Basic organics, as well as plastics that rely on a recovery in business spending, will also show marked improvement in 2003, averaging at least a three-percent increase in sales for the year, the company says.

“Despite the somewhat mixed message now being heard, we expect the U.S. chemical industry to reward patient investors with at least a two-percent growth in sales by the end of 2003,” Shamel concludes.

The increased revenues in chemical sales may be due in part to increased prices since the overall costs of raw materials have been steadily rising as shown in our price tables (see Company News) and e-mail newsletter, ASI E-News. However, increases in sales may not be all profit taking for materials manufacturers.

The price of natural gas has almost tripled compared to what it was a year ago. The higher costs are being passed along to chemical manufacturers as higher feedstock prices from their petrochemical suppliers. The higher energy costs also increase chemical production costs.

To help offset losses in margins, raw materials suppliers have taken steps to reduce fixed costs and debt. When this isn’t enough, the companies find that they need to increase prices.

Materials suppliers who serve our industry are taking the necessary steps to work with manufacturers and formulators of adhesives products through this interim period for everyone’s mutual benefit.

For more information:

Consulting Resources Corporation is an international management-consulting firm that provides professional advisory and strategic services to executives concerned with change and opportunity. Further information may be obtained by contacting Consulting Resources Corp., Six Northbrook Park, Lexington, MA 02420; phone 781-863-1222 or e-mail crc@consultingresources.net.

See ASI’s Web site http://www.adhesivesmag.com to subscribe to ASI E-News.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

Recent Articles by Karen Kramer

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI Sept 2014 cover

2014 September

Our September issue features articles focusing on high-tech applications and raw materials, as well as a preview of the ASC Fall Convention and Expo. Check it out today!

Table Of Contents Subscribe

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px