Released on: March 21, 2008, 3:32 am

Press Release Author: Bharat Book Bureau

Industry: Small Business

Press Release Summary: US demand for wood protection coatings and preservatives is
forecast to increase 3.1 percent per year to $3.2 billion in 2011, despite a
challenging market environment. Continued weakness in the key siding market is
prompting coating and preservative manufacturers to place greater emphasis on
growing applications such as flooring and cabinets. In addition, demand will benefit
from a shift in the product mix to higher value items, steady production of pressure
treated lumber and solid levels of construction-related repair and improvement
spending.

Press Release Body: Nevertheless, a decline in housing starts and deceleration in
residential building spending will limit aggregate gains. In markets such as siding,
and windows and doors, wood has sustained substantial losses to alternative
materials, in particular plastics, due to a range of factors, including relatively
frequent maintenance requirements and environmental concerns over the products used
in the wood preservation process. However, opportunities for growth still exist
based in part on the favorable qualities of wood (e.g., high aesthetic and
insulating value), and protective coatings and preservatives will play an important
role in future market success.

Environmental concerns impact shift in product mix
A shift in product mix to higher value formulations will occur in both coatings and
preservatives, mainly due to environmental issues. Concerns over the release of VOCs
during the coating process have initiated a gradual switch to more environmentally
friendly formulations. Concerns over the environmental impact of certain
preservative raw materials -- arsenic, for example -- spurred producers of chromated
copper arsenate (CCA), the dominant preservative in treated lumber, to voluntarily
withdraw their product from decking and other residential uses as of December 2003.
Alkaline copper quaternary and copper azole are the successors to CCA, both of which
maintain a higher pricing structure than CCA. However, third generation wood
preservatives, primarily centered around all-organic formulations that do not
contain arsenic, chromium or copper, are beginning to surface on the marketplace. In
addition to all-organic preservatives, borates and organometallics will also likely
post favorable gains through 2011.

Demand for interior coatings more favorable than exterior
Wood protection coatings and preservatives demand will see the most favorable gains
in interior wood applications such as flooring and cabinets. Flooring and cabinet
production will be promoted by growth in repair and improvement spending, as the
purchase of these items is common during remodeling activity. Wood will continue to
suffer losses to competitive materials in exterior applications, resulting in an
extremely difficult market environment for wood protection coating and preservative
suppliers. This is especially the case in siding, where the use of wood-based
products continues to decline. However, maintenance coatings demand will continue to
be supported by the large installed base of wood-based housing and decks. Demand
will also be boosted by the greater use of higher value coatings, featuring enhanced
durability, greater ease of use and easier cleanup. Lastly, gains will be stimulated
by the greater use of higher priced preservatives due to the voluntary ban on CCA in
residential applications.

For more information kindly visit: http://www.bharatbook.com/detail.asp?id=51263

Web Site: http://www.bharatbook.com

Contact Details: Bharat Book Bureau
207, Hermes Atrium,
Sector 11, Plot No.57,
PO Box.54, CBD Belapur,
Navi Mumbai - 400 614, India.
Phone:+91-(022)-2757 8668 / 2757 9438
Fax:+91-(022)-2757 9131
E-mail: info@bharatbook.com