SIC 2891 Adhesives and Sealants
SIC 2891
The adhesives and sealants industry consists primarily of manufacturers of industrial and household adhesives, glues, caulking compounds, sealants, and linoleum, tile, and rubber cements from vegetable, animal, or synthetic plastics materials, purchased or produced in the same establishment. Establishments primarily engaged in manufacturing gelatin and sizes are classified in SIC 2899: Chemicals and Chemical Preparations, Not Elsewhere Classified, and those manufacturing vegetable gelatin or agar-agar are classified in SIC 2833: Medicinal Chemicals and Botanical Products.
325520
Adhesive and Sealant Manufacturing
The adhesives and sealants industry includes two chemically similar but functionally different groups of formulated products, adhesive and sealants. Adhesive products are used to create a bond between two different or similar materials. Sealants are used to create an impenetrable barrier to gas or moisture. Adhesives and sealants are made from precise blends of petroleum-derived plastic resins, synthetic rubber elastomers, and agents or additives used to enhance certain characteristics. The final formulation ultimately depends on the end use. Industries that typically use adhesives and sealants include construction, consumer products, assembly, packaging, labeling, and transportation.
The industry grew steadily throughout the first half of the 2000s. Individual companies seeking to increase their revenues looked to mergers and acquisitions, particularly in foreign markets, where industry growth was expected to surpass that in the United States. In the mid-2000s the adhesives and sealants industry was being affected by ongoing consolidation, high raw materials costs, and increasing globalization of the market.
The adhesives and sealants industry's development can best be explained by the economy-wide transition from conventional materials (glass, stone, wood, and metal) to lighter and more economical resources, mainly petroleum-based plastics. These new materials mandated new methods of assembly and suitable bonding components. A generation of new products emerged to service this rapid growth area.
The market for reactive adhesives grew as the automotive industry moved away from mechanical fasteners. At the same time, packaging applications for reactives were on the rise, adding buoyancy to the adhesives industry. In the early 1990s, the reactives sector of the industry was dominated by epoxy and polyurethane systems, with urethanes taking a significantly larger portion of the market. About 100 million pounds of urethane resin went to adhesive and sealant applications in the early 1990s, compared to 28 million pounds of epoxy resin. Urethanes are most often used with flexible materials in high-impact applications, while epoxies are known for their hardness and are used with more rigid substances.
The development of epoxy/urethane hybrids attracted particular interest because of the broad range of demands placed on adhesives used in the automotive industry. Both manufacturers and users of these products were looking for the best of both worlds: combining high-tensile strength and compatibility with flexible materials. The problem was that a sacrifice was usually made in shelf life, toughness, or curing flexibility; the development of these hybrids minimized the number of sacrifices required. Developments in reactive adhesives for the auto industry also brought benefits to other industrial sectors, including appliance manufacturing.
In the latter half of the 1990s, the sealants industry continued to suffer from the vagaries of the construction market, especially in maintenance and repair. According to the U.S. Census Bureau, the adhesives and sealant industry grew from $7.2 billion in shipments in 1998 to $7.9 billion in shipments in 2000. The total number of industry employees grew from 21,692 to 22,794, with a total payroll of $979 million. The industry's 13,560 production workers earned an average wage of $15.67 per hour in 2000.
Products showing the greatest growth in the late 1990s included natural-base glues and adhesives—specifically, those made...
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