Gaskets & Seals

US demand to rise 4.6% annually through 2016
US demand for gaskets and seals is forecast to increase at a 4.6 percent annual rate to $9.6 billion in 2016. Rebounds in construction expenditures and motor vehicle production, as well as the positive outlooks for capital spending and machinery shipments, will benefit gasket and seal manufacturers. Increased use of better performing gaskets and seals made from advanced materials, which offer improved lifespans over traditional sealing materials, will also stimulate dollar growth. However, in the longer term this will have a mixed effect on the market, as initial value gains will be somewhat offset by decreased aftermarket sales opportunities.

The gasket and seal industry has become international in scope in recent years. Developing countries are expected to account for increasingly large shares of both exports from and imports to the US. For example, as China has continued to industrialize, local demand for products like gaskets and seals has increased, and domestic manufacturing capacity has also climbed. US exports of gasket and sealing products to China nearly doubled between 2006 and 2011, and US imports from China more than doubled during this span. Nevertheless, the majority of US trade will continue to be with other developed nations.

Compression packings, body seals & graphite gaskets to see best growth
Among all gasket and sealing products, compression packings, body seals, and expanded graphite gaskets will register the strongest growth through 2016. Demand for compression packings will be spurred by increases in machinery output and capital spending. The turnaround in motor vehicle production will be the primary factor driving body seal demand, and expanded graphite gaskets will continue to supplant traditional gasketing materials in a variety of motor vehicle and machinery settings because of their high chemical and temperature resistance and light weight.

Marine & rail market to post most rapid gains
The marine and rail market is projected to post the most rapid growth through 2016 of any of the major gasket and seal markets. Sizable replacement product sales opportunities and the positive outlook for marine and rail equipment shipments will bolster sales gains. However, because of their much larger shares of overall demand, the motor vehicle and machinery industries will record much stronger increases in dollar terms. A rebound in motor vehicle production and a rise in the number of motor vehicles in use will fuel sales of related gasket and sealing products. In addition, the growing use of better performing, higher-priced gaskets and seals will further drive value gains. Increases in machinery gasket and seal demand will be supported by the existence of a large aftermarket, reflecting the harsh operating conditions of many machinery products, and an increase in capital expenditures, which will bolster machinery output levels.

In 2011, original equipment manufacturing (OEM) applications made up over three-fifths of all gasket and seal sales, although this ratio varied on an industryby- industry basis. For instance, aftermarket demand was greater than OEM sales in the machinery market and equal to OEM demand in aerospace applications. In contrast, replacement sales of gaskets and seals in the electric and electronic products market only accounted for 28 percent of the 2011 sales total.

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