The U.S. is the world’s largest specialty chemicals market, estimated at $208 billion.1 As a subsector of this market, the coatings, adhesives, sealants and elastomers (CASE) markets accounted for over half, or $107 billion, in 2014.2 Industry performance since 2010 has largely been driven by a recovering macroeconomic environment. Improving trends in industrial production, consumer spending, and residential and commercial construction have driven increased demand since the Great Recession for CASE products; this higher level of activity is expected to continue through 2016.
In addition to revenue and volume growth, the industry is experiencing record lows in input costs. Petrochemicals are still among the most critical raw material, and industry profit margins have widened, impacted by the decline in oil and natural gas prices this year. What’s more, with no signs of production slowing, oil-derived raw material prices should remain low through 2016.