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
Union Carbide Corporation North Seadrift, Texas
Union Carbide Corporation Texas City, Texas
Union Carbide Corporation Hahnville, Louisiana
Valtris Specialty Chemicals Swedesboro, New Jersey
Valtris Specialty Chemicals Fort Worth, Texas
Valtris Specialty Chemicals Cleveland, Ohio
Valtris Specialty Chemicals Independence, Ohio
Valtris Specialty Chemicals Walton Hills, Ohio
Vanderbilt Minerals LLC Norwalk, Connecticut
Vanderbilt Minerals LLC Bath, South Carolina
Vanderbilt Minerals LLC Murray, Kentucky
Vanderbilt Minerals LLC Bethel, Connecticut
Vanderbilt Minerals LLC Gouverneur, New York
Vanderbilt Minerals LLC Norwalk, Connecticut
Vanderbilt Minerals LLC Pharump, Nevada
Vanderbilt Minerals LLC Robbins, North Carolina
Vanderbilt Minerals LLC Murray, Kentucky
Velsicol Chemical LLC Rosemont, Illinois
Velsicol Chemical LLC Memphis, Tennessee
Vinavil Americas Corporation Deerfield Beach, Florida
Vinavil Americas Corporation West Chicago, Illinois
Wacker Chemie AG Adrian, Michigan
Wacker Chemie AG North Canton, Ohio
Wacker Chemie AG Chino, California
Wacker Chemie AG Calvert City, Kentucky
Weather-Bloc Systems West Allis, Wisconsin
Wedron Silica Company Wedron, Illinois
Westlake Chemical Corporation Lake Charles, Louisiana
Westlake Chemical Corporation Plaquemine, Louisiana
Westlake Chemical Corporation New Martinsville, West Virginia
Westlake Chemical Corporation Houston, Texas
White Lightning Lawrenceville, Georgia
White Lightning Cleveland, Ohio
York Manufacturing Sanford, Maine