The Enormous Rise of Polyurethane Industry in The US Is Driving the Global Growth

The polyurethane industry is one of the significant sectors of the US economy that have hugely contributed in the country’s growth. This industry is accounted to be the major job creator in the US, employing more than a million people in industries that directly and indirectly use polyurethanes. The industry generates four more jobs for every one job created. The polyurethane market generates a revenue of $74.3 billion in the US, of which $12.2 billion is paid to the employees as wages according to Centre for the Polyurethane Industry (CPI). Polyurethanes are widely used in building and construction, packaging, textiles, electronics, footwear, machinery and foundry, appliances, and other end use markets. 

Polyurethanes Market

The expansion of the construction industry in the US is the key factor influencing the global industry growth. The major end-user segment is the building and construction that accounted for 36% of polyurethanes consumption in the US. It generated a revenue of $48 billion in 2015 employing around 250000 people followed by transportation and marine sector with revenue of $43 billion and employing more than 155,000 people. Transportation segment accounted for 20% of total polyurethane consumption in the US. One of the most recognized applications is the flexible polyurethane foam that is used in furniture. Polyurethane production for furniture and bedding accounted for $28.2 billion in revenue. Elastic fibres used in hosiery, spandex used in swimsuits, and elastic waistbands contribute to the polyurethane market growth. Additionally, production of polyurethane for machinery and foundry sector in 2015 accounted to $88.6 billion, appliances segment accounted for $25 billion, packaging for $3.5 billion, textiles and apparels for $3.7 billion, electronics and electrical equipment for $38 billion and footwear for $1.3 billion, respectively. Polyurethanes are contributing in securing global food supplies. 

According to Covestro, 95% of the world’s refrigerators are thermally insulated with rigid polyurethane foam. Polyurethanes are used in playgrounds and sport tracks, medical supplies and equipment, sporting equipment, wheels for industrial equipment, and decorative applications. Other industries accounted for $1.1 billion in output and employed 3,700 people. Polyurethane has contributed to Olympics as sports surfaces and clothing are crucial for athlete’s performance. Sports, which use polyurethane include gymnastics, where polyurethane is used in vaulting pits and sprung floors, pole vaulting, where the polyurethane mats cushion athletes from their high jump, and often, even the stadium itself. In running, the track surfaces made from polyurethane, are smoother and more uniform, whilst shoes, which have a polyurethane sole are stronger and more versatile for a variety of track events. 

Additionally, the economic impact of the industries that manufacture and use polyurethanes is significant. The companies of the US manufacturing polyurethane for diverse end-user industries include the Covestro, BASF & The Dow Chemical Company, American Urethane Inc., Unicast Inc., Argonics Inc., BASF and others. Additionally, the presence of various trade associations in the US is promoting the growth of the polyurethane industry. American Chemistry Council, The Spray Foam Coalition, PIMA, Polyurethane Manufacturers Association, Plastics Make it Possible, and so forth are some of the organisations making remarkable contribution for the polyurethane industry in the US. Spray Foam Coalition is a group of companies that produce and sell polyurethane spray foam insulation systems and chemicals. The companies and organisations are continuously bringing innovations in the polyurethanes for sustainable growth. Rising carbon emission levels due to the release of hazardous gases from processing facilities have also attracted attention from numerous regulatory bodies such as the US Environmental Protection Agency (EPA). Companies are therefore obligated to amend their present developments in order to enhance efficiency and lower greenhouse gas emission levels to address the alarming pollution levels. 

For instance, to meet the environmental building standards in North America, efficient & insulative foams are being utilized in ‘green’ buildings & other infrastructure projects. This is done with the objective to lower energy costs in developed regions. Yet, growing environmental concerns and volatile raw material prices are expected to challenge manufacturers. MDI & TDI, the most widely used isocyanates used for polyurethane production have witnessed price swings on account of fluctuation in their precursor markets, namely petrochemicals such as benzene. However, North America will continue to rule the polyurethane market due to its diverse demand in various end-user industries along with the efforts of various trade organisations promoting the polyurethane industry. 

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