Insulation

Insulation

This comprehensive study examines the US insulation industry by material, market and region. Historic data are provided for 1995, 2000 and 2005 with forecasts for the years 2010 and 2015. “Demand” is defined as being equal to production plus imports minus exports. This is synonymous with terms such as “sales” and “apparent consumption.” Data are presented in millions of pounds, millions of US dollars, and billions of square feet of R-1 value.

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 5
Demographic Trends 8
Resident Population 9
Households 11
Consumer Income & Spending Trends 12
Personal Income & Expenditures 12
Consumer Financing Trends 14
Building Construction Trends 17
Residential Construction 19
Housing Starts 22
Housing Stock 24
Improvements & Repair 25
Nonresidential Construction 26
New Construction 27
Improvements & Repair 29
Manufacturing Outlook 30
Pricing 33
Historical Trends 36
Foreign Trade 39
World Insulation Overview 41

III. OVERVIEW 43
General 43
R-Values 44
Material Variations in Thermal Resistance 45
Environmental & Regulatory Issues 48
Energy Efficiency Considerations 48
Indoor Air Quality Issues 50
Renewable Resources & Recycling Considerations 50
Materials-Based Considerations 53
US Insulation Demand 55

IV. PRODUCTS 57
General 57
Fiberglass 58
Materials 59
R-Values 60
Product Forms 61
Markets 65
Residential Construction 66
Nonresidential Construction 67
Industrial & HVAC Equipment 67
Other Markets 68
Foamed Plastics 69
Materials 69
R-Values 70
Product Forms 70
Markets 71
Resins 73
Urethane Foams 74
Polystyrene 79
Other Foamed Plastics 83
Cellulose 85
Product Forms 86
Markets 87
Mineral Wool 89
Product Forms 91
Markets 93
Reflective Insulation & Radiant Barriers 95
Product Forms 97
Markets 98
Other Insulation Products 101
Materials 102
Perlite 103
Vermiculite 104
Miscellaneous Materials 104
Product Forms 107
Markets 108

V. MARKETS 111
General 111
Demand by Value 112
Demand by Insulation Value 114
Residential Construction 116
Applications 119
New Housing 121
Attic Reinsulation 126
Residential Replacement & Improvements 127
Nonresidential Construction 129
Materials 130
Applications 133
Institutional 135
Office 136
Commercial 136
Industrial 137
Other Nonresidential 137
Industrial & HVAC Equipment 138
Materials 139
Applications 141
Industrial Equipment 142
HVAC Equipment 143
Other Insulation Markets 143
Materials 144
Applications 145
Appliances 146
Transportation Equipment 147
All Other Applications 147

VI. REGIONAL DEMAND 149
General 149
Regional Demographic & Economic Trends 150
Regional Demographic Trends 151
Regional Economic Trends 153
Regional Construction Trends 154
Regional Housing Trends 156
Regional Insulation Demand 158
Northeast 161
New England 163
Middle Atlantic 164
Midwest 165
East North Central 167
West North Central 168
South 169
South Atlantic 172
East South Central 173
West South Central 174
West 175
Mountain 177
Pacific 178

VII. INDUSTRY STRUCTURE 180
General 180
Industry Composition 181
Market Share 186
Industry Leaders 187
Owens Corning 187
Johns Manville 188
CertainTeed 188
Dow Chemical 188
Knauf 189
Atlas Roofing 189
Guardian Industries 189
Manufacturing & New Product Development 190
Competitive Strategies 191
Marketing & Distribution 194
Acquisitions & Divestitures 196
Cooperative Agreements 199
Company Profiles 201
Armacell International GmbH 202
Atlas Roofing Corporation, see Hood
BASF AG 204
Bayer AG 206
BayOne Urethane Systems LLC, see Bayer
Berkshire Hathaway Incorporated 209
Bridgestone Corporation 214
Carlisle Companies Incorporated 216
Carpenter Company 218
CertainTeed Corporation, see Saint-Gobain
CGI/Silvercote Incorporated 219
Covertech Fabricating Incorporated 221
Degussa AG 223
Dow Chemical Company 226
Dryvit Systems Incorporated, see RPM International Incorporated
Dyplast Products LLC 230
Falcon Foam, see Hood
Fi-Foil Company Incorporated 231
Firestone Building Products Company, see Bridgestone
G-I Holdings Incorporated 232
GAF Materials Corporation, see G-I Holdings
Grace (WR) & Company 234
Guardian Industries Corporation 235
Homasote Company 237
Hood Companies 238
Industrial Insulation Group, see Berkshire Hathaway
Innovative Energy Incorporated 240
Innovative Insulation Incorporated 242
Inspec Foams Incorporated, see Degussa
Insulfoam, see Premier Industries
Insulation Solutions Incorporated 243
Johns Manville Corporation, see Berkshire Hathaway
Knauf Gips KG 244
Louisiana-Pacific Corporation 247
Materis Holding Luxembourg SA 249
Owens Corning 251
Pactiv Corporation 255
ParexLahabra Incorporated, see Materis Holding
Pittsburgh Corning Corporation, see PPG Industries
Polyair Inter Pack Incorporated 257
PPG Industries Incorporated 259
Premier Industries Incorporated 260
Reflectix Incorporated, see Sealed Air
Rockwool International A/S 262
Roxul Incorporated, see Rockwool
RPM International Incorporated 264
Saint-Gobain 266
SCA Packaging North America, see Svenska Cellulosa
Sealed Air Corporation 268
Sloss Industries Corporation, see Walter Industries
Sto AG 270
Svenska Cellulosa AB 271
Thermafiber Incorporated 272
US GreenFiber LLC, see Louisiana-Pacific
Walter Industries Incorporated 274
Additional Companies Mentioned in Study 276

LIST OF TABLES

TABLE NUMBER PAGE

SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Resident Population & Households 9
3 Personal Income & Expenditures 14
4 Consumer Financing Environment, 1995-2005 17
5 Construction Expenditures 19
6 Residential Construction Expenditures 21
7 Housing Indicators 24
8 Residential Improvement & Repair Expenditures 26
9 Nonresidential Construction Expenditures 29
10 Nonresidential Improvement & Repair Expenditures 30
11 Manufacturers’ Shipments 33
12 Average Insulation Prices 36
13 Insulation Market, 1995-2005 38
14 Insulation Foreign Trade 40

SECTION III -- OVERVIEW
1 Insulation R-Values by Material 47
2 Insulation Demand by Value 56

SECTION IV -- PRODUCTS
1 Insulation Demand 58
2 Fiberglass Insulation Demand by Product Form 64
3 Fiberglass Insulation Demand by Market 65
4 Foamed Plastic Insulation Demand by Market 73
5 Foamed Plastic Insulation Demand by Resin 74
6 Urethane Foam Insulation Demand by Market 76
7 Urethane Foam Insulation Demand by Product 79
8 Polystyrene Foam Insulation Demand By Market 82
9 Polystyrene Insulation Demand By Type 83
10 Other Foamed Plastic Insulation Demand 84
11 Cellulose Insulation Demand by Market 88
12 Mineral Wool Insulation Demand by Material 91
13 Mineral Wool Insulation Demand by Product Form 93
14 Mineral Wool Insulation Demand by Market 95
15 Reflective Insulation & Radiant Barrier Demand By Type 97
16 Reflective Insulation & Radiant Barrier Markets 101
17 Other Insulation Demand by Material 103
18 Other Insulation Demand by Product Form 108
19 Other Insulation Demand by Market 110

SECTION V -- MARKETS
1 Insulation Demand by Market Value 113
2 Insulation Demand by Insulation Value 115
3 Residential Construction Market for Insulation by Material 119
4 Residential Construction Market for Insulation by Application 121
5 New Housing Applications for Insulation 125
6 Residential Attic Reinsulation Applications for Insulation 127
7 Residential Replacement & Improvement Applications
for Insulation 129
8 Nonresidential Construction Market for Insulation by Material 133
9 Nonresidential Construction Market for Insulation
by Application & Type 135
10 Industrial & HVAC Markets for Insulation by Material 141
11 Industrial & HVAC Markets for Insulation by Application 142
12 Other Insulation Markets by Material 145
13 Other Insulation Markets by Application 146

SECTION VI -- REGIONAL DEMAND
1 Population by Region 152
2 Gross Domestic Product by Region 154
3 Construction Expenditures By Region 156
4 Regional Home Sales & New Housing Trends 158
5 Insulation Demand by Region 160
6 Northeast Insulation Demand by Subregion & Market 163
7 Midwest Insulation Demand by Subregion & Market 167
8 South Insulation Demand by Subregion & Market 171
9 West Insulation Demand by Subregion & Market 177

SECTION VII -- INDUSTRY STRUCTURE
1 US Insulation Sales By Company, 2005 184
2 Selected Acquisitions & Divestitures 198
3 Selected Cooperative Agreements 200 LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2005 25
2 Insulation Market, 1995-2005 38

SECTION V -- MARKETS
1 Insulation Demand by Market Value, 2005 114
2 Insulation Demand by Insulation Value, 2005 116

SECTION VI -- REGIONAL DEMAND
1 Insulation Demand by Region, 2005 160

SECTION VII -- INDUSTRY STRUCTURE
1 Insulation Market Share by Company, 2005 187