Sector: Sealants

Market Overview: Strong growth rates in the construction industry, specifically the residential housing market, along with worldwide legislation on solvent emissions will continue driving global demand for construction sealants. In the United States, demand is expected to grow at a rate of 2.8% yearly and by 2019 equate to a $12.8 billion dollar industry. 

Demand for sealants is expected to outpace that for adhesives in the near term, enhancing both OEM production levels and associated supply opportunities.

Sealant use in construction continues to steadily increase due to its importance in forming ever critical air/water barriers. The barriers not only are energy efficient, but also serve to improve occupants’ health by blocking out pests and pollution. As public interest in green building grows, so does the use of sealants.

More than 75 percent of sealants used in all construction are silicone based partially because of its inherent low VOC’s (volatile organic compounds) and subsequent qualification for LEED credits from the U.S. Green Building Council toward certification of a structure as a green entity. 

Water based sealants are dominating the market with the concern over toxins from solvents.  Additionally, manufacturers are moving to develop renewable alternatives for the petrochemical base of sealants. Vegetable oils are one base currently in use.

Within the sealant market, raw materials continue to be the single largest cost factor representing some 53 to 63 percent of costs of goods sold. However, manufacturers are seeing increased profit margins thanks to the declines in oil and gas prices.

Large multinational companies—both domestic and foreign—dominate the market with Henkel, 3M, H.B. Fuller and Dow together having nearly 50 percent market share. Mergers and acquisitions in the sealant and chemical industries continue at a rapid pace. This can lead to some disruption in production as supplier product lists are consolidated and OEM manufacturers have to reformulate. 

Transnational corporations also tailor compositions to local market conditions, reflecting regulations on content. Restrictions on the use of toxic substances vary greatly between states, countries and content.

Many smaller companies have been purchased by private equity firms, and third-party manufacturers in Europe and Asia are supplying brand-name sealants companies in North America.

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Company Location
LyondellBasell Alvin, Texas
LyondellBasell Westlake, Louisiana
LyondellBasell Bay City, Texas
Mallard Creek Polymers Inc. Charlotte, North Carolina
Mallard Creek Polymers Inc. Charlotte, North Carolina
Malvern Minerals Company Hot Springs, Arkansas
Manus Products Inc. Naples, Florida
Manus Products Inc. Waconia, Minnesota
Milwhite Inc. Brownsville, Texas
Momentive Performance Materials Inc. Chino, California
Momentive Performance Materials Inc. Huntersville, North Carolina
Momentive Performance Materials Inc. New Smyrna Beach, Florida
Momentive Performance Materials Inc. Sistersville, West Virginia
Momentive Performance Materials Inc. Garrett, Indiana
Momentive Performance Materials Inc. Waterford, New York
Munzig North America Bloomfield, New Jersey
Munzig North America Clover, South Carolina
Neville Chemical Company Pittsburgh, Pennsylvania
Nouryon Augusta, Georgia
Nouryon Marietta, Georgia
Nouryon Green Bay, Wisconsin
Novagard Solutions Cleveland, Ohio
NPC Colored Sealants Westchester, Illinois
NYCO Minerals Inc. Willsboro, New York
Omega Products International Inc. Sacramento, California
Omega Products International Inc. Commerce City, Colorado
Omega Products International Inc. Las Vegas, Nevada
Omega Products International Inc. Bakersfield, California
Omega Products International Inc. Corona, California
Omya Inc. Cincinnati, Ohio
Omya Inc. Sylacauga, Alabama
Omya Inc. Lucerne Valley, California
Omya Inc. Florence, Vermont
Ona Polymers Garland, Texas
OSI LaGrange, Georgia
OSI Mentor, Ohio
Owens Corning Rockford, Illinois
Owens Corning Toledo, Ohio
Owens Corning Tallmadge, Ohio
Owens Corning Gresham, Oregon
Pecora Corporation Harleysville, Pennsylvania
Permatite Manufacturing Lakeville, Minnesota
Permatite Manufacturing Minneapolis, Minnesota
Permatite Manufacturing Pequot Lakes, Minnesota
Permatite Manufacturing Burnsville, Minnesota
Phenomenal Brands Baltimore, Maryland
Polymer Adhesives Sealant Systems Inc. Mineral Wells, Texas
Polymeric Systems Inc. Elverson, Pennsylvania
PPG Industries Inc. Temple, Texas
Premier Building Solutions Massillon, Ohio