Polystyrene and Polyurethane Foam Products in U.S. Building and Construction

Polystyrene and Polyurethane Foam Products in U.S. Building and Construction

The U.S. market for polyurethane and polystyrene foam used for building and construction has grown steadily since 2002. Professional contractors and consumers increasingly purchased foam-based insulation products for a multitude of energy-saving renovation projects that could offset the rising cost of heating commercial and residential properties. But by mid-2007 as the price of oil rose and construction slowed, the demand for the plastic foam began to weaken. The detrimental effects of the down economy have extended to manufacturers of foam products used for purposes other than building and construction.

This Specialists in Business Information (SBI) report contains data and analysis describing the U.S. market for polystyrene and polyurethane foam products, with a specific focus on building and construction. The report examines the state of the U.S. industry for polyurethane and polystyrene foam construction products and how manufacturers are coping with a rapidly changing market in which consumers increasingly crave offerings that are environmentally friendly, innovative, and durable.

The report explores economic factors affecting polystyrene and polyurethane foam products The report covers shipments, imports and exports, as well as the economic and market trends driving the industry. It identifies key market trends and dynamics, and profiles major market players, outlining their strategies to maximize growth and profitability.

SBI’s research methodology for this report involved aggregating, synthesizing, and analyzing data from several sources, including the U.S. government and several third-party market research syndicated data suppliers. Historical data relating to the manufacturing and distribution of foam products in the U.S are culled from the U.S. Department of Commerce, the U.S. Census Bureau, and the Bureau of Labor Statistics. Analysis of these data, including market-level shipments, imports and exports, provide the foundation for our projections of overall market size and growth during the next five years. Our projections also take into account data that indirectly affects the growth of the polystyrene and polyurethane foam market, such as information provided by the National Association of Home Builders, Energy Information Association, and the Home Improvement Research Institute. Simmons Market Research Bureau is our primary source of data covering consumer trends in plastic foam products.

The shipment value has been used to indicate the market supply. Shipment statistics are derived from the U.S. Census of Manufacturers and the Annual Survey of Manufacturers, and are estimated and projected by SBI. We provide historical data for 2002 through 2007 (all 2007 shipments are estimates), with forecast data from 2008 to 2012.  
 

Polystyrene and Polyuerthan Foam Products in U.S. Building and Construction

Table of Contents

Executive Summary

Polystyrene Foam Market Is Worth $7.2 Billion

Table 1-1 U.S. Market for Polystyrene Foam by Shipment and Import-

Export Values, 2002-2007 (in million $)

Canada is Largest Exporter

Consumer Products Comprise Half Polystyrene Foam Market

Polyurethane Foam Market Is Valued at $6.4B

Table 1-2 U.S. Market for Polyurethane Foam by Shipment and Import-

Export Values, 2002-2007 (in million $)

Germany is Largest Import Source

Canada Has Highest Exports Value

Building and Construction Foam Comprises 8% of the Total Market

Figure 1-1 Total U.S. Market for Polyurethane Building and Construction

Foam 2002-2007 (in million $)

Total Building and Construction Foam Market Valued at $1.7B

Table 1-3 U.S. Market for Polyurethane and Polystyrene Foam for

Building and Construction 2002-2007 (in million $)

Insulation Shipments

Total Market Growth Due to Three Factors

Energy Costs Skyrocket

The Products

Polyurethane Foam Products

Producer Prices Rise

Insulation Market Opportunities

Thermal Insulation Products for the Construction Industry

Foam Market at a Critical Juncture

Controlling Greenhouse Gas

Regulatory Control Measures Proposed

USGBC and the LEED Program

Implications for Sellers of Green Insulation

Communicating Green Initiatives with Customers

Market Value to Reach $18.7B by 2012

Chapter 2: Market Size and Growth

Report Scope

Methodology

The U.S. Market

Polystyrene Foam Market Is Worth $7.2 Billion

Table 2-1 U.S. Market for Polystyrene Foam by Shipment and Import-

Export Values, 2002-2007 (in million $)

Figure 2-1 Imports and Exports of Polystyrene Foam, Expressed as Percent of the Total Market, 2002-2007 (in million $)

Figure 2-2 Total U.S. Market for Polystyrene Foam, 2002-2007 (in million $)

Canada is Largest Exporter

Table 2-2 U.S. Imports of Polystyrene Foam, by Country of Shipment

Origin, 2002-2007 (in million $)

Table 2-3 U.S. Exports of Polystyrene Foam, by Country of Destination,

2002-2007 (in million $)

Figure 2-3 Share of Total Market for U.S. Imports of Polystyrene Foam,

by Country of Shipment Origin, 2002-2007 (in million $)

Consumer Products Comprise Half Polystyrene Foam Market

Table 2-4 U.S. Shipments of Polystyrene Foam, by Type of Product,

2002-2007 (in million $)

Building and Construction Polystyrene Foam Market Worth $1.2B

Table 2-5 U.S. Market for Polystyrene Building and Construction Foam

by Shipment and Import-Export Values, 2002-2007 (in million $)

Figure 2-4 Total U.S. Market for Polystyrene Foam Used for Building and

Construction, 2002-2007 (in million $)

Illinois is Largest Producer of Polystyrene Foam for Construction

Table 2-6 U.S. Shipments of Polystyrene Building & Construction Foam,

by State, 2002-2007 (in billion $)

Polyurethane Foam Market Is Valued at $6.4B

Table 2-7 U.S. Market for Polyurethane Foam by Shipment and Import-

Export Values, 2002-2007 (in million $)

Table 2-8 Total Value of the U.S. Market for Polyurethane Foam, 2002-

2007 (in million $)

Germany is Largest Import Source

Canada Has Highest Exports Value

Table 2-9 U.S. Imports of Polyurethane Foam, by Country of Origin,

2002-2007 (in million $)

Table 2-10 U.S. Exports of Polyurethane Foam, by Country of

Destination, 2002-2007 (in million $)

Figure 2-4 U.S. Imports of Polyurethane Foam, by Country of Origin,

2002-2007 (in million $)

Building and Construction Foam Comprises 8% of the Total Market

Table 2-11 U.S. Shipments for Polyurethane Foam by Product Category,

2002-2007 (in million $)

Table 2-12 U.S. Market for Polyurethane Building and Construction Foam

by Shipment and Import-Export Values, 2002-2007 (in million $)

Polyurethane Foam for Construction Worth $492M

Figure 2-5 Total U.S. Market for Polyurethane Building and Construction

Foam 2002-2007 (in million $)

Total Building and Construction Foam Market Valued at $1.7B

Table 2-13 U.S. Market for Polyurethane and Polystyrene Foam for Building and Construction 2002-2007 (in million $)

Insulation Shipments

Table 2-14 U.S. Market for Foam Insulation Compared to Other Foam

Products for Building and Construction, 2002-2012 (in million $)

Figure 2-6 U.S. Market Share of Plastic Foam Insulation and Other Foam

Products, 2002, 2007, and 2012

Factors Influencing the Market

Manufacturing Sectors Grow

Table 2-15 Growth in U.S. Manufacturing Sectors, 1Q2007 vs. 1Q200830

Energy Consumption Affects Insulation Market

Growth in HVAC and Water Heating Systems

Total Market Growth Due to Three Factors

Energy Costs Skyrocket

Housing and Commercial Building Construction Slows

Table 2-16 Annual U.S. New Home Sales and Average Annual New

Sales Price, 2000-2006

Home Renovation Market Declining

Table 2-17 U.S. Home Improvement Market, 2007-2012

Figure 2-7 U.S. Housing Market Index, by Region, 2007 to

January 2008

Housing Starts and Home Sales Rebounding in 2009

Table 2-18 U.S. Housing Activity and Forecast, 2004-2009 (in

thousands)

Construction Spending

Table 2-19 U.S. Construction Spending: Total, Private, Public,

Residential and Nonresidential, March 2007 vs. March 2008 (seasonally

adjusted and annualized in million $)

Construction Industry Labor Force Will Grow

Chemical Manufacturing Employment Will Decline

Insulation Contractor Employment Will Grow

Table 2-20 U.S. Employment Outlook for Insulation Contractors, 2006 vs. 2016

Market Value to Reach $18.7B by 2012

Table 2-21 Projected U.S. Shipments for Polystyrene and Polyurethane

Foam, by Category (2007 to 2012, in million $)

Figure 2-8 Projected Market Share of U.S. Shipments of Polystyrene and

Polyurethane Foam, by Category, 2012

Table 2-22 Projected U.S. Shipments for Polystyrene and Polyurethane

Building and Construction Foam, by Category (2007 to 2012 in million $)

Figure 2-9 Total U.S. Market for Polystyrene and Polyurethane Foam, (2007 to 2012 in million $)

Chapter 3: Market Dynamics and Product Innovation

The Products

Polystyrene Foam

Structural Insulated Panels Compete with ICF Market

Table 3-1 Comparison of Labor Hours and Cost of Labor for SIP-Built

and 2” x 4” Batt Insulation

Polyurethane Foam Products

Producer Prices Rise

Figure 3-1 PPI for Polyurethane Construction Foam is Higher than

Packaging Foam

Figure 3-2 Producer Price Index of Polyurethane Foams Used for

Packaging and Building & Construction, 2006 vs. 2007

Insulation Market Opportunities

Table 3-2 R-Value of Thermal Insulation Materials (Higher R Value

Translates into Better Insulation)

Table 3-3 Thermal Insulation Levels for Homes Recommended by the U.S. Department of Energy

Table 3-4 Summary of Energy Prices, 2006 to 2009

Table 3-5 Historic Trends of Energy Consumption by Type of Fuel, 2002 to Jan. 2008

Figure 3-3 Annual Consumption of Energy Sources in the U.S. (quadrillion BTUs), 2002 to 2012

Thermal Insulation Products for the Construction Industry

Thermal Concrete Insulation

Insulation Innovations Rapidly Emerging

Insulated Vinyl Siding

Chapter 4: Marketing and Distribution

Foaming at the Mouth

Polyurethane Foam Manufacturers Cope with Negative Publicity

XPS Marketing Efforts Have been Slow

Controlling Greenhouse Gas

Regulatory Control Measures Proposed

Table 4-1 Annual Energy Savings and Greenhouse Gases Reduced from Using Foam Sheathing on External House Walls

Manufacturers Increase Green Output

USGBC and the LEED Program

Other Green Building Tools Emerge

LEED Project Trends

Table 4-2 LEED-Certified Projects, 2000-2007 (number and percent)

Implications for Sellers of Green Insulation

Figure 4-2 Estimated Growth of U.S. Green Insulation Market Revenues, 2002-2007 (in $ millions)

Communicating Green Initiatives With Customers

Retailers On Board - Lowe’s and Home Depot Test Their Strategies

Eco Options Branding

Lowe’s Leaves Product Claims to Third Parties

Direct Sales Teams

Distributors/Retailers

Dealer and Builder Programs

Websites

Chapter 5: Manufacturer Profiles

BASF

Figure 5-1 Share of BASF Sales by Business Segment, 2007

Table 5-1 BASF Sales and Year-Over-Year Percent Growth, 2004-2007 (in billion $)

Dow Chemical

Table 5-2 Dow Chemical and Year-Over-Year Percent Growth, 2004- 2007 (in billion $)

Dow Acquires Polyurethane Manufacturer

Table 5-3 Dow Chemical Insulation Product Line

Bayer MaterialScience

Figure 5-2 Bayer Group Share of Company Revenue by Business Unit 83

Table 5-4 Bayer MaterialScience Revenues and Year-Over-Year Growth, 2004 to 2007 ($ billions)

Chevron Phillips Chemical Co

Table 5-5 Chevron Phillips Chemical Revenues and Year-Over-Year Growth, 2004 to 2007 ($billions)

Owens Corning

Table 5-6 Owens Corning Revenues and Year-Over-Year Growth, 2004 to 2007 ($ billions)

Table 5-7 Brand Portfolio of Owens Corning Company for Thermal Insulation

Carlisle Companies

Table 5-8 Carlisle Companies Revenues and Year-Over-Year Growth, 2004 to 2007 ($billions)

Table 5-9 Brand Portfolio of Carlisle Companies Incorporated for Thermal Insulation

Johns Manville Corporation

Table 5-10 Brand Portfolio of Johns Manville Corporation for Thermal Insulation

Chapter 6: End Users

Housing Construction Activity Affects Foam Purchases

Table 6-1 Total Spending on Construction in the U.S., April 2008 vs. April 2007 ($ millions)

Type of Construction

Table 6-2 U.S. Consumer Spending on Household Improvements, Maintenance and Repairs ($ billions), 2003 to 2007

Home Improvement Project Spending Will Grow

Figure 6-1 Quarterly Spending in Homeowner Remodeling ($ billions) and Year-Over-Year Growth, 2005 to 2008 (e)

Table 6-3 Projects Involving Interior and Exterior Replacements

Remodeling Activity Increased In Early 2008

Figure 6-2 National Association of Home Builders Remodeling Market Index of Additions and Alterations, 2002 to 2007

Figure 6-3 National Association of Home Builders Remodeling Market Index by Region, 2001 to 2007

Consumer Interest Increases in Energy-Efficiency Remodeling

Table 6-4 Types of Equipment or Fuel Used to Heat U.S. Homes, 1995 to 2005

Owners of Older Homes More Vulnerable to Energy Cost Increases

Table 6-5 Amount Spent on Insulation Remodeling Improvements, by Age Group and Gender (past 12 months)

Spending on Remodeling Projects Will Grow Through 2015

Rising Demand of “Green” Products

Consumer Spending On Green Will Double, Reach $500 Billion In 2008

Appendix