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Home > News > Others

Building and construction foam market with great potential, says SBI report

Source： Date ：2008-08-14 Editor ：(ACH)
Weakened by a down economy, the nearly US$14 billion market for polystyrene and polyurethane foam may see its resurrection in the move toward sustainable and green construction products, according to a study provided by research reports publisher SBI.

US shipments of all polystyrene foam products were valued at an estimated US$7.2 billion in 2007, and grew at a compound annual growth rate of 2.8% between 2002 and 2007, the report found. Shipments of all products manufactured with polyurethane foam totaled an estimated US$6.4 billion in 2007, a CAGR of 2.4% for the 2002-2007 period. During these years, consumers and professional contractors increasingly purchased foam-based products primarily for insulation to reduce the skyrocketing energy costs for heating. But by mid-2007 as new construction slowed during the start of the sub-prime mortgage crisis, and the price of oil climbed to record heights, the demand for the plastic foam began to dwindle.

"The US plastic foam market is at a critical juncture, where manufacturers must grapple with escalating production costs and reduced demand from end-users coping with construction and remodeling stoppages from the economic slowdown," notes Don Montuori, vice president of publishing for SBI. "Several dynamics are in place that will affect the marketing and distribution of plastic foams used for construction, allowing manufacturers to stay afloat as the industry shifts toward ‘greener’ pastures."


Currently, the primary audience for green building materials is architects, designers and spec writers on whom builders rely for materials specifications. This may shift toward home builders and consumers as residential green markets grow.
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Source： Date ：2008-08-14 Editor ：(ACH)
Weakened by a down economy, the nearly US$14 billion market for polystyrene and polyurethane foam may see its resurrection in the move toward sustainable and green construction products, according to a study provided by research reports publisher SBI.

US shipments of all polystyrene foam products were valued at an estimated US$7.2 billion in 2007, and grew at a compound annual growth rate of 2.8% between 2002 and 2007, the report found. Shipments of all products manufactured with polyurethane foam totaled an estimated US$6.4 billion in 2007, a CAGR of 2.4% for the 2002-2007 period. During these years, consumers and professional contractors increasingly purchased foam-based products primarily for insulation to reduce the skyrocketing energy costs for heating. But by mid-2007 as new construction slowed during the start of the sub-prime mortgage crisis, and the price of oil climbed to record heights, the demand for the plastic foam began to dwindle.

"The US plastic foam market is at a critical juncture, where manufacturers must grapple with escalating production costs and reduced demand from end-users coping with construction and remodeling stoppages from the economic slowdown," notes Don Montuori, vice president of publishing for SBI. "Several dynamics are in place that will affect the marketing and distribution of plastic foams used for construction, allowing manufacturers to stay afloat as the industry shifts toward ‘greener’ pastures."


Currently, the primary audience for green building materials is architects, designers and spec writers on whom builders rely for materials specifications. This may shift toward home builders and consumers as residential green markets grow.
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Building and construction foam market with great potential, says SBI report

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