“Following several years of recovery, a fully healed US housing market will lead to a jump in new residential construction activity,” notes analyst Nick Cunningham. Nonresidential building construction activity is also expected to increase rapidly through 2018. Economic growth will support a rebound in both the industrial and office and commercial sectors. Greater economic activity will also require increased investment in infrastructure, both public and private, particularly for the US’ aging transportation network. This will lead to healthy growth in nonbuilding construction chemicals demand, especially for cement and asphalt additives and coatings. Growing demand for chemical additives and coatings will also result from the increasing use of new concrete technologies that offer superior performance and ease of placement, such as high performance concrete and self-consolidating concrete.
Higher value formulations will continue to gain share in many product segments in response to both environmental and performance concerns. Volatile organic compound (VOC) regulations have been enacted at both the federal and state level. This trend will be further intensified by consumer preferences for low odor and easy cleanup water-based products. The transition toward better performing, longer lasting products will boost the value of the construction chemicals market going forward, though the decreased replacement frequency and volume of chemicals required will serve as a check on further growth.