Analysts Optimistic for Chemicals, Plastics Markets
Analysts with Great American Group, Inc., Woodland Hills, CA, report that the outlook for the chemicals and plastics sector is optimistic in 2014, largely due to strong forecasted demand from the residential construction and automotive production markets.
In 2013, the housing demand exhibited a resurgence, driven predominantly by the residential construction sector. The automotive sector posted similar results, boasting its highest unit sales since 2007 with 15.6 million new vehicles in 2013.
“Despite a number of challenges, the chemicals and plastics industries demonstrated growth in 2013, boosted by the highest level of car sales in six years and rapid expansion in the housing market,” said Jonathan Deptula, Great American Group senior project manager and chemicals/plastics industry specialist. “While nothing is certain in the global economy, our industry analysts are optimistic that 2014 will mirror the growth witnessed last year.”
Low-cost shale gas also continued to contribute significantly to the strong industry performance. The abundance of cheap raw materials sparked something of a renaissance in the domestic industry, with numerous industry participants announcing new plant construction and expanded capacity in the coming five to ten years. Formerly plagued by high costs, analysts believe the US is becoming increasingly price competitive on a global scale.
For more information about industry trends in chemicals, plastics and packaging, download Great American Group’s quarterly Chemicals and Plastics Monitor.