Increased Demand for Adhesives Projected to Stick Around
Apr-18-2013 | Comments: 0 | Posted In: | Posted By: Abbe Raabe
Looks like adhesives manufacturers have good reason to remain optimistic about the economy. As reported on Adhesives and Sealants Industry’s adhesivesmag.com, recent research from IBISWorld – billed as the world’s largest independent publisher of U.S. industry research – increased demand for adhesives continues. The increase follows a five-year decline, during which industry revenue fell at an estimated annualized rate of 0.9% to $10 billion as the recession decreased demand from downstream customers, notably, in construction, aircraft manufacturing, packaging and consumer goods manufacturing.
According to the IBSWorld report, adhesives manufactures do continue to face increased raw material costs and stricter government regulations. However, in spite of this, revenue in 2012 increased 1.5%, with a profit of about 7.4% of revenue (a decrease from 7.8% of revenue in 2007). The report contends that production levels within primary markets will increase and that foreign companies will bolster revenue increase as a weaker dollar reduces the cost of U.S. goods.
Franklin Adhesives & Polymers is poised to meet domestic and foreign demand for adhesives in the many markets we serve, around the world. We spent significant time during the recession in the laboratory, with the goal to strengthen our long-term ability to provide cost-effective solutions to each of our customers. In addition, our broad offering of water-based adhesives positions us to help customers easily meet strict environmental regulations.
Throughout the downtown, we also continued to build our global network (including adding a new plant in China specifically to serve the Pacific Rim more efficiently) and stand ready to meet the adhesives needs of customers in primary markets around the world.