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Polystyrene and Polyurethane Foam Insulation Products in U.S. Building and Construction

The U.S. market for polyurethane and polystyrene foam used for building and construction has grown steadily since 2002. Professional contractors and consumers increasingly purchased foam-based insulation products for a multitude of energy-saving renovation projects that could offset the rising cost of heating commercial and residential properties. But by mid-2007 as the price of oil rose and construction slowed, the demand for the plastic foam began to weaken. The detrimental effects of the down economy have extended to manufacturers of foam products used for purposes other than building and construction.

This Specialists in Business Information (SBI) report contains data and analysis describing the U.S. market for polystyrene and polyurethane foam products, with a specific focus on building and construction. The report examines the state of the U.S. industry for polyurethane and polystyrene foam construction products and how manufacturers are coping with a rapidly changing market in which consumers increasingly crave offerings that are environmentally friendly, innovative, and durable.

The report explores economic factors affecting polystyrene and polyurethane foam products The report covers shipments, imports and exports, as well as the economic and market trends driving the industry. It identifies key market trends and dynamics, and profiles major market players, outlining their strategies to maximize growth and profitability.

SBI’s research methodology for this report involved aggregating, synthesizing, and analyzing data from several sources, including the U.S. government and several third-party market research syndicated data suppliers. Historical data relating to the manufacturing and distribution of foam products in the U.S are culled from the U.S. Department of Commerce, the U.S. Census Bureau, and the Bureau of Labor Statistics. Analysis of these data, including market-level shipments, imports and exports, provide the foundation for our projections of overall market size and growth during the next five years. Our projections also take into account data that indirectly affects the growth of the polystyrene and polyurethane foam market, such as information provided by the National Association of Home Builders, Energy Information Association, and the Home Improvement Research Institute. Simmons Market Research Bureau is our primary source of data covering consumer trends in plastic foam products.

The shipment value has been used to indicate the market supply. Shipment statistics are derived from the U.S. Census of Manufacturers and the Annual Survey of Manufacturers, and are estimated and projected by SBI. We provide historical data for 2002 through 2007 (all 2007 shipments are estimates), with forecast data from 2008 to 2012.


Polystyrene and Polyuerthan Foam Products in U.S. Building and Construction
Table of Contents
Executive Summary
Polystyrene Foam Market Is Worth $7.2 Billion
Table 1-1 U.S. Market for Polystyrene Foam by Shipment and Import-
Export Values, 2002-2007 (in million $)
Canada is Largest Exporter
Consumer Products Comprise Half Polystyrene Foam Market
Polyurethane Foam Market Is Valued at $6.4B
Table 1-2 U.S. Market for Polyurethane Foam by Shipment and Import-
Export Values, 2002-2007 (in million $)
Germany is Largest Import Source
Canada Has Highest Exports Value
Building and Construction Foam Comprises 8% of the Total Market
Figure 1-1 Total U.S. Market for Polyurethane Building and Construction
Foam 2002-2007 (in million $)
Total Building and Construction Foam Market Valued at $1.7B
Table 1-3 U.S. Market for Polyurethane and Polystyrene Foam for
Building and Construction 2002-2007 (in million $)
Insulation Shipments
Total Market Growth Due to Three Factors
Energy Costs Skyrocket
The Products
Polyurethane Foam Products
Producer Prices Rise
Insulation Market Opportunities
Thermal Insulation Products for the Construction Industry
Foam Market at a Critical Juncture
Controlling Greenhouse Gas
Regulatory Control Measures Proposed
USGBC and the LEED Program
Implications for Sellers of Green Insulation
Communicating Green Initiatives with Customers
Market Value to Reach $18.7B by 2012
Chapter 2: Market Size and Growth
Report Scope
Methodology
The U.S. Market
Polystyrene Foam Market Is Worth $7.2 Billion
Table 2-1 U.S. Market for Polystyrene Foam by Shipment and Import-
Export Values, 2002-2007 (in million $)
Figure 2-1 Imports and Exports of Polystyrene Foam, Expressed as Percent of the Total Market, 2002-2007 (in million $)
Figure 2-2 Total U.S. Market for Polystyrene Foam, 2002-2007 (in million $)
Canada is Largest Exporter
Table 2-2 U.S. Imports of Polystyrene Foam, by Country of Shipment
Origin, 2002-2007 (in million $)
Table 2-3 U.S. Exports of Polystyrene Foam, by Country of Destination,
2002-2007 (in million $)
Figure 2-3 Share of Total Market for U.S. Imports of Polystyrene Foam,
by Country of Shipment Origin, 2002-2007 (in million $)
Consumer Products Comprise Half Polystyrene Foam Market
Table 2-4 U.S. Shipments of Polystyrene Foam, by Type of Product,
2002-2007 (in million $)
Building and Construction Polystyrene Foam Market Worth $1.2B
Table 2-5 U.S. Market for Polystyrene Building and Construction Foam
by Shipment and Import-Export Values, 2002-2007 (in million $)
Figure 2-4 Total U.S. Market for Polystyrene Foam Used for Building and
Construction, 2002-2007 (in million $)
Illinois is Largest Producer of Polystyrene Foam for Construction
Table 2-6 U.S. Shipments of Polystyrene Building & Construction Foam,
by State, 2002-2007 (in billion $)
Polyurethane Foam Market Is Valued at $6.4B
Table 2-7 U.S. Market for Polyurethane Foam by Shipment and Import-
Export Values, 2002-2007 (in million $)
Table 2-8 Total Value of the U.S. Market for Polyurethane Foam, 2002-
2007 (in million $)
Germany is Largest Import Source
Canada Has Highest Exports Value
Table 2-9 U.S. Imports of Polyurethane Foam, by Country of Origin,
2002-2007 (in million $)
Table 2-10 U.S. Exports of Polyurethane Foam, by Country of
Destination, 2002-2007 (in million $)
Figure 2-4 U.S. Imports of Polyurethane Foam, by Country of Origin,
2002-2007 (in million $)
Building and Construction Foam Comprises 8% of the Total Market
Table 2-11 U.S. Shipments for Polyurethane Foam by Product Category,
2002-2007 (in million $)
Table 2-12 U.S. Market for Polyurethane Building and Construction Foam
by Shipment and Import-Export Values, 2002-2007 (in million $)
Polyurethane Foam for Construction Worth $492M
Figure 2-5 Total U.S. Market for Polyurethane Building and Construction
Foam 2002-2007 (in million $)
Total Building and Construction Foam Market Valued at $1.7B
Table 2-13 U.S. Market for Polyurethane and Polystyrene Foam for Building and Construction 2002-2007 (in million $)
Insulation Shipments
Table 2-14 U.S. Market for Foam Insulation Compared to Other Foam
Products for Building and Construction, 2002-2012 (in million $)
Figure 2-6 U.S. Market Share of Plastic Foam Insulation and Other Foam
Products, 2002, 2007, and 2012
Factors Influencing the Market
Manufacturing Sectors Grow
Table 2-15 Growth in U.S. Manufacturing Sectors, 1Q2007 vs. 1Q200830
Energy Consumption Affects Insulation Market
Growth in HVAC and Water Heating Systems
Total Market Growth Due to Three Factors
Energy Costs Skyrocket
Housing and Commercial Building Construction Slows
Table 2-16 Annual U.S. New Home Sales and Average Annual New
Sales Price, 2000-2006
Home Renovation Market Declining
Table 2-17 U.S. Home Improvement Market, 2007-2012
Figure 2-7 U.S. Housing Market Index, by Region, 2007 to
January 2008
Housing Starts and Home Sales Rebounding in 2009
Table 2-18 U.S. Housing Activity and Forecast, 2004-2009 (in
thousands)
Construction Spending
Table 2-19 U.S. Construction Spending: Total, Private, Public,
Residential and Nonresidential, March 2007 vs. March 2008 (seasonally
adjusted and annualized in million $)
Construction Industry Labor Force Will Grow
Chemical Manufacturing Employment Will Decline
Insulation Contractor Employment Will Grow
Table 2-20 U.S. Employment Outlook for Insulation Contractors, 2006 vs. 2016
Market Value to Reach $18.7B by 2012
Table 2-21 Projected U.S. Shipments for Polystyrene and Polyurethane
Foam, by Category (2007 to 2012, in million $)
Figure 2-8 Projected Market Share of U.S. Shipments of Polystyrene and
Polyurethane Foam, by Category, 2012
Table 2-22 Projected U.S. Shipments for Polystyrene and Polyurethane
Building and Construction Foam, by Category (2007 to 2012 in million $)
Figure 2-9 Total U.S. Market for Polystyrene and Polyurethane Foam, (2007 to 2012 in million $)
Chapter 3: Market Dynamics and Product Innovation
The Products
Polystyrene Foam
Structural Insulated Panels Compete with ICF Market
Table 3-1 Comparison of Labor Hours and Cost of Labor for SIP-Built
and 2” x 4” Batt Insulation
Polyurethane Foam Products
Producer Prices Rise
Figure 3-1 PPI for Polyurethane Construction Foam is Higher than
Packaging Foam
Figure 3-2 Producer Price Index of Polyurethane Foams Used for
Packaging and Building & Construction, 2006 vs. 2007
Insulation Market Opportunities
Table 3-2 R-Value of Thermal Insulation Materials (Higher R Value
Translates into Better Insulation)
Table 3-3 Thermal Insulation Levels for Homes Recommended by the U.S. Department of Energy
Table 3-4 Summary of Energy Prices, 2006 to 2009
Table 3-5 Historic Trends of Energy Consumption by Type of Fuel, 2002 to Jan. 2008
Figure 3-3 Annual Consumption of Energy Sources in the U.S. (quadrillion BTUs), 2002 to 2012
Thermal Insulation Products for the Construction Industry
Thermal Concrete Insulation
Insulation Innovations Rapidly Emerging
Insulated Vinyl Siding
Chapter 4: Marketing and Distribution
Foaming at the Mouth
Polyurethane Foam Manufacturers Cope with Negative Publicity
XPS Marketing Efforts Have been Slow
Controlling Greenhouse Gas
Regulatory Control Measures Proposed
Table 4-1 Annual Energy Savings and Greenhouse Gases Reduced from Using Foam Sheathing on External House Walls
Manufacturers Increase Green Output
USGBC and the LEED Program
Other Green Building Tools Emerge
LEED Project Trends
Table 4-2 LEED-Certified Projects, 2000-2007 (number and percent)
Implications for Sellers of Green Insulation
Figure 4-2 Estimated Growth of U.S. Green Insulation Market Revenues, 2002-2007 (in $ millions)
Communicating Green Initiatives With Customers
Retailers On Board - Lowe’s and Home Depot Test Their Strategies
Eco Options Branding
Lowe’s Leaves Product Claims to Third Parties
Direct Sales Teams
Distributors/Retailers
Dealer and Builder Programs
Websites
Chapter 5: Manufacturer Profiles
BASF
Figure 5-1 Share of BASF Sales by Business Segment, 2007
Table 5-1 BASF Sales and Year-Over-Year Percent Growth, 2004-2007 (in billion $)
Dow Chemical
Table 5-2 Dow Chemical and Year-Over-Year Percent Growth, 2004- 2007 (in billion $)
Dow Acquires Polyurethane Manufacturer
Table 5-3 Dow Chemical Insulation Product Line
Bayer MaterialScience
Figure 5-2 Bayer Group Share of Company Revenue by Business Unit 83
Table 5-4 Bayer MaterialScience Revenues and Year-Over-Year Growth, 2004 to 2007 ($ billions)
Chevron Phillips Chemical Co
Table 5-5 Chevron Phillips Chemical Revenues and Year-Over-Year Growth, 2004 to 2007 ($billions)
Owens Corning
Table 5-6 Owens Corning Revenues and Year-Over-Year Growth, 2004 to 2007 ($ billions)
Table 5-7 Brand Portfolio of Owens Corning Company for Thermal Insulation
Carlisle Companies
Table 5-8 Carlisle Companies Revenues and Year-Over-Year Growth, 2004 to 2007 ($billions)
Table 5-9 Brand Portfolio of Carlisle Companies Incorporated for Thermal Insulation
Johns Manville Corporation
Table 5-10 Brand Portfolio of Johns Manville Corporation for Thermal Insulation
Chapter 6: End Users
Housing Construction Activity Affects Foam Purchases
Table 6-1 Total Spending on Construction in the U.S., April 2008 vs. April 2007 ($ millions)
Type of Construction
Table 6-2 U.S. Consumer Spending on Household Improvements, Maintenance and Repairs ($ billions), 2003 to 2007
Home Improvement Project Spending Will Grow
Figure 6-1 Quarterly Spending in Homeowner Remodeling ($ billions) and Year-Over-Year Growth, 2005 to 2008 (e)
Table 6-3 Projects Involving Interior and Exterior Replacements
Remodeling Activity Increased In Early 2008
Figure 6-2 National Association of Home Builders Remodeling Market Index of Additions and Alterations, 2002 to 2007
Figure 6-3 National Association of Home Builders Remodeling Market Index by Region, 2001 to 2007
Consumer Interest Increases in Energy-Efficiency Remodeling
Table 6-4 Types of Equipment or Fuel Used to Heat U.S. Homes, 1995 to 2005
Owners of Older Homes More Vulnerable to Energy Cost Increases
Table 6-5 Amount Spent on Insulation Remodeling Improvements, by Age Group and Gender (past 12 months)
Spending on Remodeling Projects Will Grow Through 2015
Rising Demand of “Green” Products
Consumer Spending On Green Will Double, Reach $500 Billion In 2008
Appendix

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