Boom in Global Demand Creates Growing Need for Chemicals, Coatings & Plastics 7-16-2007
The businesses of chemicals, coatings and plastics are closely linked, and those sectors, in turn, are closely linked with the oil and gas industry. Plastics comprise a branch of petrochemicals-that is, chemicals refined from petroleum. Total world consumption of oil for industrial uses is about 30 million barrels daily-mostly for use in chemical processes. Chemicals products include pharmaceuticals, fertilizers, dyes, fibers, packaging, adhesives and explosives, among many, many others. While the chemicals industry can be cyclical, gaining and losing ground with changes in the global economy, many trends in the world today point to rapidly increasing demand for many types of chemical products. Some examples include:
- Building Boom Boosts Demand for Plastics in the U.S.
Commercial construction spending is at record levels. The impact of this increase on the plastics industry is profound. Vinyl windows, particularly, are seeing intense growth in demand. As an alternative to wood or aluminum windows, vinyl is cheaper and is proving to be sturdy and resistant to water infiltration. It is also energy-efficient.
- New Technology in Plastics and Coatings Impacts the Automotive Industry.
According to a market analysis study by Robert W. Baird & Co., the automotive industry has increased its use of plastics in vehicle construction from an average of 60 pounds in 1970 to over 360 pounds in 2003. Put another way, the weight of plastic in a mid-size sedan grew from 6% of the total weight in 1975 to 13% in 2004. German chemical manufacturer BASF anticipates the share of plastics to rise as high as 18% in 2007.
- Polymers Enable New Display Technologies with PLEDs (Polymer Light Emitting Diodes).
On a groundbreaking day at Cambridge University, researchers discovered that organic LEDs (OLEDs) could be manufactured using polymers. The plastic substance known as PPV (polyphenylenevinylene) emits light when layered between electrodes. The resulting product is referred to as a PLED (polymer light emitting diode).
To find out more about these exciting trends and others, check out Plunkett's Chemicals, Coatings & Plastics Industry Almanac 2008, or go to www.plunkettresearch.com and sign up for a subscription to Plunkett's completely up-to-date online database!
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