The slow recovery from the historic downturn in residential construction continues in 2016. In the mid-2000s, increasing prices and easy credit led to a rush of investment in residential construction. At the end of 2005, new residential investment accounted for an unsustainable 6.5% of GDP above its long-term rate.
The ChemQuest Group estimates the global adhesive and sealant industry to be approximately $53 billion at the end of 2015, comprised of $46.3 million in adhesives and $6.5 billion in sealants. This figure represents an increase of 3.5% in 2015.
Coming into 2015, the U.S. adhesives industry looks to continue its recent trend of lower-than-normal volume growth. Historically, adhesives and sealants have been growing about 1½ times of the gross domestic product (GDP) in the U.S.
The outlook for the U.S. adhesives and sealants industry at the mid-point of 2014 has slightly improved over 2013. After growing just 1.9% in 2013, most economists are predicting the U.S. gross domestic product (GDP) will grow 3% for 2014.
On a daily basis, television, newspaper, and radio fill their programming with “experts” who are all too eager to prognosticate where the stock market will be in 12 months, how quickly the sea will rise in the next 100 years, or who will win the Super Bowl and why.
Current government austerity policies in the U.S. and Europe appear to be lowering GDP through reduced government spending and increased taxes. At the same time, central banks in developed countries around the world continue efforts to boost economic growth with unprecedented accommodative monetary policies.
In August 2012, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) issued a joint final rule for Corporate Average Fuel Economy (CAFE) standards for 2017-2025.