CLEVELAND – Demand for sealants and caulk in the United States is projected to increase 2.9 percent annually to more than two billion pounds in 2012, valued at almost $4 billion. This represents an improvement over the gains posted in the 2002-2007 period, reflecting strengthening end-use market fundamentals. In the critical construction market, which accounted for 60 percent of total demand in 2007, consumption of sealants and caulk will benefit from expected recoveries in residential building and nonbuilding construction such as roads, highways and utilities. Prospects are also expected to improve in the motor vehicle and aerospace markets. These and other trends are presented in a new study from The Freedonia Group Inc., a Cleveland-based industry research firm.

Demand for sealants and caulk in construction markets will benefit from a recovery in the key single-family-home building market, advancing from a weak 2007 base. In addition, the nonbuilding construction segment will show renewed strength through 2012, reflecting an increased emphasis on upgrading the nation’s transportation and utility infrastructure. Although new construction will record greater growth through 2012, the improvement and repair segment will also post a stable gain.

In the motor vehicle market, demand will benefit from increasing motor vehicle production through 2012. Gains will be concentrated in automobiles and heavy trucks and buses, which will account for the majority of demand. All motor vehicles require the use of sealants and caulk in window glazing and sealing, sound and vibration deadening, and corrosion protection. However, the trend toward larger passenger vehicles, such as sport utility vehicles, is expected to shift in favor of smaller cars, which would moderate gains in demand on a per-vehicle basis. Consumption of sealants and caulk in motor vehicle markets is projected to increase 2.2 percent annually to 245 million pounds in 2012.

For further information about this study, visit www.freedoniagroup.com.