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Spray Foam 2013 Hyatt Regency, Jacksonville, FL Angela Austin, Editor - PU Magazine International

Review of the Global Spray Foam Industry. Spray Foam 2013 Hyatt Regency, Jacksonville, FL Angela Austin, Editor - PU Magazine International. International Headlines for 2012. SPF grows only 2.3 % globally due to lower construction activity and use in China

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Spray Foam 2013 Hyatt Regency, Jacksonville, FL Angela Austin, Editor - PU Magazine International

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  1. Review of the Global Spray Foam Industry Spray Foam 2013 Hyatt Regency, Jacksonville, FL Angela Austin, Editor - PU Magazine International Dr. Gupta Verlag

  2. International Headlines for 2012 • SPF grows only 2.3 % globally due to lower construction activity and use in China • Global construction spending stalls in Europe, but recovers in Asia, Middle East & Africa • Chinese SPF construction drops sharply but recovery expected in 2013 • SPF installation standards become a more global issue Dr. Gupta Verlag

  3. NAFTA Headlines for 2012 • NAFTA PU production up 6.2 % to 6.9Bn lbs • NAFTA SPF grows 6.6 % to reach 517 MMlbs • US construction forecasts very positive • Growth spurred on by shale gas effect • US housing starts up • US manufacturing up 34 months in a row Dr. Gupta Verlag

  4. Estimated Global PU Production by Region ( MMlbs) 2010-2012 Dr. Gupta Verlag

  5. GDP Growth for Major Economies 2010-14 (F) (%) Source UN

  6. Estimated Global PU Raw Material Demand ( MMlbs) 2012 Dr. Gupta Verlag

  7. Market Drivers for the Global Construction Industry • Greater globalisation needing higher living standards • Increased urbanisation • A shortage of talent • More energy efficient buildings • Greater use of new technologies • Higher demand for sustainable living Source: Accenture

  8. Growth in Construction Spending 2010/2011 vs 2012-2013 (%) IHS Global Insight

  9. Continued Decline in Western European Construction Markets 2011-2013 (%) Dr. Gupta Verlag

  10. US Construction Outlook • House sales remain lower than pre crisis but the foreclosure pipeline is emptying • A significant improvement in housing starts- mainly multiple family • Non-residential construction started to pickup especially repair and retrofit. • House prices on the rise in some States • Government has initiate house purchase programmes in some States • Energy security remains a key driver

  11. US Construction Spending Growth Forecasts 2011-2016 (%) IHS Insight

  12. US Housing Activity 2008-2012 (‘000 units) Source: US Census Bureau

  13. Housing starts in Canada 2006-2012 Source: CMHC

  14. Canadian Construction Industry • Household debt to income ratio reached 152% in 2012 - spending slowdown • Property market still buoyant due to overseas investment • Housing starts remain below historical average and are forecast to fall 9-10% • Federal regulations to drive public construction spending Dr. Gupta Verlag

  15. Mexican Construction Industry • Grew by 3.1 % to USD 86 million in 2012 • Government initiatives increased housing starts by 8 % in 2012 • A slight trend to more eco- friendly buildings • Currently there are 5 LEED certified buildings but over 80 are “ in the process” of qualification Dr. Gupta Verlag

  16. Global Trends in SPF Production • Global: Demand growth up by 2.3 % • Western Europe: Growth for underfloor heating , weatherisation and wall insulation continues to develop due to EU legislation. • Eastern Europe: existing housing badly needs insulation, SPF offers a solution • Middle East & Africa: new energy efficiency regulations introduced, new markets open • China interim ban lifted in December • Asia Pacific: Energy prices and rebuilding after natural disasters create opportunities

  17. ISOPA – Passive House in Belgium Dr. Gupta Verlag

  18. SPF Growth in Europe • Underfloor heating market booms in France & Benelux • More energy efficiency required to reach • 202020 EU initiative • Europe learns from the US…”one example being the adoption here of the US HSE package developed by for the spray foam industry”. Dr Frank, ISOPA Dr. Gupta Verlag

  19. UK Green Deal – benefits for SPF? • Government backed loan of up to £10 K paid back from savings in household fuel bills • Includes insulation, windows and furnaces • UK SPF market is 5-6Mlbs only • 2 major system houses Dr. Gupta Verlag

  20. Challenges for SPF & Green Deal • Not enough qualified assessors • Small sized housing & building density makes access difficult. • SPF is relatively unknown vs competition • SPF contractors NEED training • …….however, small rooms become even smaller when insulated with “ Earth Wool” • Most UK houses have a “ cavity wall” void suitable for filling with PU foam. Dr. Gupta Verlag

  21. Waterproof your roof in Thailand! “Spray foam…makes your roof WATERPROOF! And Protects Against Heat.”. Bangkok Post Dr. Gupta Verlag

  22. Security Features of SPF in South Africa Dr. Gupta Verlag

  23. Emergency shelters for Turkish earthquake c 1960 – Future potential BayerMaterialScience Archives

  24. Global Production Trends in SPF 2009-2012( MMlbs) PU Magazine

  25. Leading SPF Producing Countries 2011 & 2012 ( MMlbs) Source Gupta Verlag

  26. Ban on PU in China’s buildings lifted • With effect from December 2012 the use of the use of Class A materials is not mandatory. • Class B3 ( easily combustible materials remain banned and Class B2 are limited, meaning Class A & B1 are now preferred • Insulation material will be included in the Fire Safety Supervision Process meaning stricter examination and implementation of codes • Local fire safety codes are required in 50 major cities requiring all insulation to be B1 or better Source: Chinese Media

  27. Mobile SPF “ Bao house” in China Dot architects China

  28. Estimated SPF Production – NAFTA2009-2012 (MMlbs) Source: PU Magazine/ CPI/ IAL

  29. Estimated Production of ccSPF & ocSPF 2011 & 2012 ( MMlbs) Gupta Verlag

  30. US Market Drivers for SPF • Commercial wall insulation grows • New promotion and financing options offered to homeowner to grow demand • US “exports” health & safety “know-how” to European SPF industry • New housing starts increasing

  31. US SPF Industry Overcomes Problems • Overspray – dry fall technology • Fire risks - thermal and fire resistant barriers • Health & Safety issues – certification and training • Environmental issues – 4 G blowing agents, low VOC, recycled and renewable content Dr. Gupta Verlag

  32. Canadian Growth Slows • CUFCA continues to develop brand and best practices • No of certified installers has increased by 56% since 2002 • No. of SPF suppliers has more than doubled to 12 in 2012 • Problems of “ unique specifiers” • Stagnation in market due to fewer tax incentives and greater competition Dr. Gupta Verlag

  33. SPF Market in Mexico • Reputation of contractors still a problem • PU boardstock takes market share from SPF in food industry & agriculture due to cleanliness and efficient installation • Residential market continues to grow due to Government incentives to insulate homes Dr. Gupta Verlag

  34. Future challenges • Class actions, homeowner complaints and contractor problems • Proposal for contractor licensing • Volatile raw material costs • Increased competition due to higher number of system suppliers • New technologies such as fiber glass with air sealants Dr. Gupta Verlag

  35. Future opportunities • Government stimulus for more energy efficiency • Growth in the housing market • Extension of tax credits for insulation • Rising standards of installation and better communication with customers and home owners • SPF remains a great problem solver! Dr. Gupta Verlag

  36. Download slides www.pu-magazine.com Dr. Gupta Verlag

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