Raw materials used in the manufacturing of adhesives and sealants represent a small yet important part of the global chemical industry. Raw materials constitute a majority of the cost of goods sold (COGS) for adhesives and sealants. The chemical building blocks used to produce adhesives and sealants can also be used to produce a wide array of other chemical compounds.
Use trends, price fluctuations, and availability of raw materials all have important implications for adhesives and sealants formulators and the industry as a whole. Not unexpectedly, key markets are competing for certain raw materials and their precursors, particularly during periods of tight supply. Indeed, volatility in raw material pricing or supply availability have resulted in technology resources being shifted from innovation projects to validating alternate vendors or substitute materials during periods of short supply.