IRP sales to grow 5.3% annually. (Market Focus).Sales of industrial rubber products in the U.S. are forecast to increase 5.3% per year to $18.4 billion in 2006, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new study by The Freedonia Group. Freedonia says gains will be driven primarily by a stronger outlook for durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. production after a relatively weak performance in 2001. In addition, the industrial rubber products aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. will be aided by an aging stock of equipment, machinery and vehicles purchased during the economic expansion of the 1990s. In 2006, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and applications will account for a slightly expanded 65% of total demand, encompassing industrial rubber goods used in the assembly of major durable goods, as well as the initial construction of buildings and infrastructure projects. Freedonia predicts, in addition to rising durable goods output, demand for industrial rubber products will continue to be buoyed by design trends. For example, consumer expectations for vehicles with quieter cabins will promote sales of high quality vibration control products and weatherstripping in motor vehicle markets. Additionally, trends toward higher operating temperatures in machinery, vehicles and equipment will promote the use of premium-priced heat-resistant materials in the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of rubber hose and rubber belting, according to the study. Motor vehicles are expected to remain the largest market, due to the wide range of applications for industrial rubber products. Continued strong output of larger-sized vehicles (e.g., pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their trucks, sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. and minivans) will also contribute to gains, since these vehicles typically not only contain more industrial rubber products on a per vehicle basis, but also have more rigorous maintenance requirements. This market is projected to grow at a 4% annual rate and will go from $4.7 billion in 2001 to $5.73 billion in 2006. The industrial machinery market will provide strong gains due to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. advances in shipments. Freedonia pegs its growth at 7.2% per year to come close to the same $73 billion in sales as motor vehicles. The aerospace and other transportation equipment market will also experience rapid gains, a result of higher production levels and aftermarket opportunities created by the strict maintenance requirements of commercial and military aircraft. In addition to durables Durables A category of consumer goods, durables are products that do not have to be purchased frequently. Some examples of durables are appliances, home and office furnishings, lawn and garden equipment, consumer electronics, toy makers, small tool manufacturers, sporting goods, , industrial rubber products find significant use in construction activities. A deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration across the construction industry will limit demand for industrial rubber products such as roofing, flooring, geo-membranes and window and door weatherstripping through 2006, particularly in new residential construction. The nonresidential sector will provide opportunities as owners of existing office, retail and other commercial buildings look to upgrades, such as the installation of rubber flooring or reroofing activities, to retain and attract tenants.
Industrial rubber product sales
(Million dollars)
1996 2001 2006
Industrial rubber product sales 12,050 14,200 18,400
Motor vehicles 4,125 4,707 5,735
Industrial machinery/equipment 3,482 4,040 5,730
Construction 1,455 1,968 2,335
Aerospace/other transporation 1,268 1,515 2,030
Other markets 1,720 1,970 2,570
% annual growth
01/96 06/01
Industrial rubber product sales 3.3 5.3
Motor vehicles 2.7 4.0
Industrial machinery/equipment 3.0 7.2
Construction 6.2 3.5
Aerospace/other transporation 3.6 6.0
Other markets 2.8 5.5
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