NewsAdhesives and Sealants TopicsAdhesives & Sealants HeadlinesFinished Adhesives and SealantsRaw Materials and Chemicals

ASC Survey Reports Pricing Pressure and Rising Costs Top Industry Concerns

Photo of hands on a laptop — Kaitlyn Baker

According to The Adhesive and Sealant Council’s Q2 Industry Pulse survey, adhesive and sealant manufacturers, raw material suppliers, and distributors are reporting increased pricing pressure and rising costs as the top business challenges facing them in the second quarter. Uncertainty due to tariffs and the Middle East conflict is driving up raw material and energy costs. Volatility within the industry continued in the second quarter, impacting supply chains, price management, and cost controls.

Despite the challenging environment, positive sentiment about the current state of the industry rose to 56%, up from 44% reported in the first quarter. Optimism is highest among manufacturers and distributors, with 64% and 67% respectively saying they are very positive or somewhat positive compared to only 40% of raw materials suppliers who say the same thing.

The Adhesive and Sealant Council (ASC) launched the Industry Pulse survey in the first quarter of 2026 to give its members timely, actionable market intelligence on a regular basis. It captures quarter-over-quarter performance across key business metrics, including company revenue, bottom-line profits, shipment volumes, employment levels, and product demand among other areas. The survey also allows members to track their company’s performance against the industry average.

“While the industry continues to report slight to moderate revenue growth year-over-year, demand across segments remains uneven,” said ASC President Bill Allmond. “Furthermore, with so much uncertainty and price pressure, especially within the industry’s top markets, the adhesive and sealant value chain is anticipating 1% to 5% revenue growth over the next 12 months.”

The council reports that the results underscore the need to advance policies that reduce or eliminate unnecessarily burdensome regulation, especially at the state level, and enable the adhesive and sealant industry, one of the most innovative manufacturing sectors, to unleash its full potential in North America.

Full results are available exclusively to ASC members. For more information on how to participate in the third-quarter survey or to view the second-quarter 2026 results, visit ascouncil.org/asc-industry-pulse.