ADHESIVETRENDS
An e-newsletter from ITW TACC
November 2004
|
ADHESIVE |
What goes into making an adhesive is as important as what it's used for. Raw materials, manufacturing processes and production systems all contribute to the cost of adhesives. The ADHESIVE MATERIALS section of our newsletter includes updates on current material and production issues. |
 |
Raw Materials Costs Continue to Rise – Nearly all ingredients needed to make adhesives have risen in cost in 2004. Primarily to blame: the rising cost of crude oil. Since January of this year, the cost of a barrel of oil has gone up 70%, thus greatly affecting adhesive raw materials costs. Acetone is up 30%; MEK and Hexane up 60% each; Toluene up 80%; SBS rubber up 25%; even Hyrdrocarbon Resins, plastic and steel packaging are all up 15%.  If the cost of oil continues to trend upward to $70 a barrel—as the industry is predicting—then it is possible that the price of adhesives could see additional increases in the range of 5% -15% in early 2005. With such dynamic raw material costs—and standard 10-day notice from raw material suppliers—manufacturers will be hard-pressed to communicate price increases to customers in a timely manner. |
Water-Based Adhesives Making Strong Inroads – Chemical News Intelligence (CNI) cited a report from J.P. Morgan that showed end-users have changed their purchasing patterns in response to tighter environmental regulations. The move is away from solvent-based adhesives to water-based, which now make up 58 percent of the global market, well ahead of hot melt (20 percent) and solvent-based (down to 9 percent) adhesives.
Rising raw material costs will only serve to further the migration to water-based, as materials used in making water-based adhesives are not nearly as affected by oil prices as are solvent-based adhesives.
|
REGULATORY |
Adhesive users face formidable challenges to their profitability: environmental regulations, safety liability and insurance costs are just a few. Knowing what lies ahead is important to success. It is rugged terrain--regardless of where you do business. REGULATORY UPDATE provides a look at key regulatory issues affecting your business. |
CARB Survey Results Expected Soon – According to ASC, results of the California Air Resources Board’s (ARB) most comprehensive consumer and commercial products survey to date are imminent. The survey is the first step in finding another estimated 20-30 tons per day in emissions reductions by 2010 and over 300 product categories are being scrutinized. Among categories being surveyed for the first time are carpet tile adhesives, rubber cement, wallpaper adhesives, woodworking glue, painter’s putty, window glazing compound and wood filler.
|
ADHESIVE |
With so many challenges to overcome, no single adhesive can possibly satisfy every requirement. That is why it is important to know what choices are available. Our ADHESIVE SOLUTIONS section aims to keep you abreast of the latest Research & Development news at ITW TACC. |
Water-Based Myths – What do you know about water-based adhesives? Chances are, any information you have—or opinion that you hold—is pretty old and dated. If you experimented with water-based adhesives when they were first introduced several years ago, you may be convinced that they don't work as well as traditional, solvent-based adhesives.
Think again. The new generation of water-based adhesives features advanced formulations that deliver performance to rival traditional adhesives, with added benefits that make water-based adhesives a very attractive alternative.
These added benefits include adherence to tighter environmental regulations (with low VOC content), improved coverage, and important cost savings. With petroleum-based solvents absent from water-based formulas, the rising cost of chemical components has much less impact on the cost of water-based adhesives.