Adhesives Mag logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEW PRODUCTS
  • NEWS
  • TOPICS
  • COLUMNS
  • TOP 20
  • MULTIMEDIA
  • EXPLORE
  • DIRECTORIES
  • EMAGAZINE
  • SIGN UP!
cart
facebook twitter linkedin youtube
  • NEWS
  • Adhesives & Sealants Headlines
  • Mergers/Acquisitions
  • Events Calendar
  • Market Trends
  • TOPICS
  • Finished Adhesives and Sealants
  • Pressure-Sensitive Adhesives (PSAs)
  • Coatings
  • Raw Materials and Chemicals
  • Materials Handling/Processing
  • Meter/Mix/Dispense
  • Curing
  • Testing/Quality Control
  • Packaging of Adhesives & Sealants
  • Converting/Packaging
  • Composites
  • Sustainability
  • COLUMNS
  • European Perspectives
  • Strategic Solutions
  • Supply Chain Strategies
  • Tape Talk
  • MULTIMEDIA
  • Videos
  • Podcasts
  • Webinars
  • eBooks
  • EXPLORE
  • Adhesives in Action
  • Blog
  • ASI Store
  • Industry Links
  • Market Research
  • Classifieds
  • DIRECTORIES
  • Buyers' Guide
  • Global Adhesives & Sealants Directory
  • Raw Materials, Chemicals, Polymers and Additives Handbook
  • Equipment Handbook
  • Distributor Directory
  • EMAGAZINE
  • EMAGAZINE
  • ARCHIVE ISSUES
  • ADVERTISE
  • CONTACT
  • ADVERTISE
  • Custom Content & Marketing Services
Adhesives Mag logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Adhesives Mag logo
  • NEW PRODUCTS
  • NEWS
    • Adhesives & Sealants Headlines
    • Mergers/Acquisitions
    • Events Calendar
    • Market Trends
  • TOPICS
    • Finished Adhesives and Sealants
    • Pressure-Sensitive Adhesives (PSAs)
    • Coatings
    • Raw Materials and Chemicals
    • Materials Handling/Processing
    • Meter/Mix/Dispense
    • Curing
    • Testing/Quality Control
    • Packaging of Adhesives & Sealants
    • Converting/Packaging
    • Composites
    • Sustainability
  • COLUMNS
    • European Perspectives
    • Strategic Solutions
    • Supply Chain Strategies
    • Tape Talk
  • TOP 20
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Webinars
    • eBooks
  • EXPLORE
    • Adhesives in Action
    • Blog
    • ASI Store
    • Industry Links
    • Market Research
    • Classifieds
  • DIRECTORIES
    • Buyers' Guide
    • Global Adhesives & Sealants Directory
    • Raw Materials, Chemicals, Polymers and Additives Handbook
    • Equipment Handbook
    • Distributor Directory
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • ADVERTISE
      • Custom Content & Marketing Services
    • CONTACT
  • SIGN UP!
Finished Adhesives and SealantsEnd User FeaturesInfo for Construction

Strategic Solutions

State of the U.S. Construction Market

Total construction spending has been growing at a robust 8.1% over the last five years.

By A. Todd Muhleman
Figure 1
Figure 1. U.S. adhesives market by end use.
Figure 2
Figure 2. Construction spending.
Figure 3
Figure 3. Residential fixed investment.
Figure 4
Figure 4. Residential construction.
Figure 5
Figure 5. Homeowner improvements.
Figure 1
Figure 2
Figure 3
Figure 4
Figure 5
September 1, 2017

The U.S. adhesives market reached $15.8 billion in 2016; sealants grew to $2.4 billion. Volume growth in each appears to be less than 2% from our interviews of industry participants. Figure 1 shows a breakdown of the U.S. market by end use in terms of value.

Construction-related end uses make up 28% of the market for adhesives and sealants in the U.S., and even more globally—over 40%. In terms of a breakdown between residential and non-residential construction, the split is 60/40, with non-residential representing the larger of the two components. The average growth in total construction spending has been a robust 8.1% over the last five years.

Non-Residential Construction Spending

Non-residential construction spending continued to increase, albeit at a slower pace (4.1%) in 2016, according to the U.S. Census Bureau. Construction markets showing double-digit year-over-year increases include lodging, office, and commercial. Sectors that declined in 2016 were mainly in public spending, including water supply, sewage treatment and public safety. The outlook for the next five years is an average growth rate of ~ 4.5% per year, according to consensus estimates, slightly lower than the 5.5% per year seen over the previous five years.

Residential Spending

Before the recession of 2007, U.S. residential fixed investment historically accounted for about 5% of GDP; it dropped to a low of 2.6% in 2010. It is currently is averaging 3.5% of GDP over the last three years.

The recovery from the historic downturn in residential construction continues in 2017, but the sector remains at only 75% of its peak in 2006. Both single- and multi-family housing starts have recovered from their lows of 550,000 per year at the end of 2008 to a forecasted 1.35 million for 2017. In 2016, existing home sales were 3.8% higher than 2015, with 5.45 million units sold. New home sales were up even more 12% in 2016 with 561,000 units sold. Employment gains, continuing low interest rates and low inventory of existing homes (especially starter homes) for sale continue to be supportive of the new home market.

Nevertheless, other factors continue to limit growth, including price appreciation (up 5.5% year-over-year as of April 2017), low inventory and more stringent loan criteria. In addition, demographic changes among buyers and their preferences are changing the market.

Home ownership rates have stabilized but are still low, particularly for those under the age of 45, compared to their historical average. Currently, the number of Americans owning their own house is at 63.9%, up from its lowest level since the mid-1960s but well below the peak of 69% in 2005. Those under 45 years old owning homes now are about 7% less than the historical norms, but that has begun to improve as well. The demographic shift toward renting led to an increase in the construction of multi-family units for rent in recent years. Homebuilders have responded to the demand for starter homes by building smaller, new single-family homes to meet a lower price point to compete with renting.

The unemployment rate for the construction industry was at 4.5% in June 2016, slightly lower than the current overall rate of 4.9%. Labor costs for builders are climbing due to many skilled workers leaving during the extended downturn in construction, offsetting lower costs of raw materials.

The residential remodeling market continues to flourish. Remodeling includes both improvements and maintenance/repairs. Historically, spending is traditionally split 80/20 in favor of improvements vs. maintenance.

Although remodeling projects use less adhesive than new construction, it is still an area of significant adhesive demand. The long-term trend of homeowners moving away from do-it-yourself (DIY) and hiring others for projects has resumed after reversing a bit during the recession.  ASI


Any views or opinions expressed in this column are those of the author and do not represent those of ASI, its staff, Editorial Advisory Board or BNP Media.

KEYWORDS: adhesives in construction innovation sealants in construction

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

A. Todd Muhleman is senior consultant for The ChemQuest Group Inc. an international strategic management consulting firm specializing in the adhesives, sealants and coatings industries, headquartered in Cincinnati. For more information, phone (513) 469-7555 or visit www.chemquest.com.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • mouse in hole

    Using Foam Sealants for Pest Prevention

    According to the National Pest Management Association,...
    Finished Adhesives and Sealants
    By: Kevin Corcoran
  • linked network nodes

    Using the Power of AI for Adhesive and Sealant Formulation

    With the help of software solutions, adhesive formulators...
    Finished Adhesives and Sealants
    By: Karen Parker
  • top20-hero.jpg

    2024 ASI Top 20: Leading Global Manufacturers of Adhesives and Sealants

    ASI's annual ranking of the top 20 global adhesive and...
    Finished Adhesives and Sealants
Subscribe For Free!
  • eMagazine Issues
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

Voices from the Top: Jowat

Voices from the Top: Jowat

Voices from the Top: Arkema Group

Voices from the Top: Arkema Group

Looking Forward to WAC 2022

Looking Forward to WAC 2022

More Videos

Popular Stories

image of confetti in air

Winners of ASC Innovation Awards

news on internet screen

H.B. Fuller Names 2025 Customer Innovation Awards Winners

Picture of white beads of hot-melt adhesives

Henkel and Synthomer Work to Cut Carbon Emissions in Adhesives

ASI Top 20 website

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Products

Structural Adhesives: Properties, Characterization and Applications

Structural Adhesives: Properties, Characterization and Applications

See More Products

ASI CASE EBOOK

Related Articles

  • Chemquest

    State of the U.S. Construction and Remodeling Markets

    See More
  • Chemquest

    Strategic Solutions: State of the U.S. Adhesives and Sealants Industry

    See More
  • asi1018-SS-ChemQuest-Fig1

    State of the U.S. Construction Market

    See More
×
Figure 1. U.S. adhesives market by end use.
Figure 2. Construction spending.
Figure 3. Residential fixed investment.
Figure 4. Residential construction.
Figure 5. Homeowner improvements.

Keep the info flowing with our eNewsletters!

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey & Sample
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Youtube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

Adhesives Mag logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Adhesives Mag logo
  • NEW PRODUCTS
  • NEWS
    • Adhesives & Sealants Headlines
    • Mergers/Acquisitions
    • Events Calendar
    • Market Trends
  • TOPICS
    • Finished Adhesives and Sealants
    • Pressure-Sensitive Adhesives (PSAs)
    • Coatings
    • Raw Materials and Chemicals
    • Materials Handling/Processing
    • Meter/Mix/Dispense
    • Curing
    • Testing/Quality Control
    • Packaging of Adhesives & Sealants
    • Converting/Packaging
    • Composites
    • Sustainability
  • COLUMNS
    • European Perspectives
    • Strategic Solutions
    • Supply Chain Strategies
    • Tape Talk
  • TOP 20
  • MULTIMEDIA
    • Videos
    • Podcasts
    • Webinars
    • eBooks
  • EXPLORE
    • Adhesives in Action
    • Blog
    • ASI Store
    • Industry Links
    • Market Research
    • Classifieds
  • DIRECTORIES
    • Buyers' Guide
    • Global Adhesives & Sealants Directory
    • Raw Materials, Chemicals, Polymers and Additives Handbook
    • Equipment Handbook
    • Distributor Directory
  • EMAGAZINE
    • EMAGAZINE
    • ARCHIVE ISSUES
    • ADVERTISE
      • Custom Content & Marketing Services
    • CONTACT
  • SIGN UP!