2014 U.S. MARKET ANALYSIS: CHEMICALS MRO DATA · 2014 U.S. MARKET ANALYSIS: CHEMICALS MRO DATA ......

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2014 U.S. MARKET ANALYSIS:

CHEMICALS MRO DATAESTIMATED END-USER DEMAND BY REGION & END-MARKET

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2014 CHEMICALS MRO MARKET REPORTMDM.COM

© 2015 Gale Media, inc.

The Chemicals market as defined in this report is made up of the following product categories:

Adhesives

• Adhesives MRO – adhesives, glues, cements for construction and service industry use; in-house facilities, equip-ment maintenance, mechanic’s operational (tooling & other use)

• Packaging Adhesives – Adhesives, cements for packaging and product identification use: sealing of cartons, containers, shipping boxes; tagging, labeling, etc.

Lubricants – Highly-refined and synthetic lubricating greases for service in textiles, foods and other non-contaminant applications

Sealants – Sealants, caulking used by construction/service industries; in-house facilities and equipment maintenance

Coatings – Rust-preventing coating oils

Metal Cutting & Forming

• Metal Cutting – Fluids used for machining metal, glass etc with abrasives or cutting tools

• Metal Forming – Metal rolling, drawing, stamping and other forming process oils

Industrial Oil & Grease – Petroleum lubricating oil and grease, unfinished lubricating oils

Hydraulic Oils – Hydraulic fluids, oils and greases

Paint & Spray Equipment

• Paint - Maintenance – Paint and related surface coatings: facilities maintenance and equipment refinish: con-tractor and service industry use for maintenance and equipment refinishing, new construction and service indus-try use

• Paint Spray Equipment MRO – Spray equipment, paint and related surface coatings-gen maintenance, contrac-tor use

Product Category & Definition

According to MDM Analytics’ annual analysis of Chemical MRO markets, the U.S. market size for chemical products is estimated at $XX billion, based on end-of-year 2013 data. Find the methodology and a definition of MRO on page 11 of this report.

This report provides a high-level view of the total market demand for chemical products by providing the estimat-ed end-market consumption of these products. This does not represent the amount sold by wholesaler-distributors. A percentage of the total estimated demand is sold direct from manufacturers to end-user.

Executive Summary

Chemicals MRO ProfileEst. demand: $XX Billion

Chemicals MRO: XX%

Other Industrial MRO: XX%

Total Industrial MRO Market Size: $XX Billion

u.s. Market

Data removed for sample



Estimated overall market demand: 2008-2013Estimated market demand for Chemicals from 2008 to 2013 has been relatively steady except for a dip during the reces-sion in 2009.

u.s. Market

Chemicals Trend WatchSignificant changes are in store for companies that make, stock or sell chemicals, as deadlines for implementing new rules from the Occupational Safety and Health Administration rapidly approach. Manufacturers must have new labeling and safety data sheets (SDS) for all of their chemicals by June 1, 2015, while distributors must sell chemicals with the old labels and SDS by December.

The new hazard communication standards (HCS) – or, rather, the changes to existing rules – were established in 2012 to comply with United Nations rules created in 2005. The goal of the rules is to make safety information more con-sistent and understandable for users, regardless of country of origin.

Chemical manufacturers, importers and distributors all have responsibility to ensure that each container of hazard-ous chemicals leaving the workplace has the appropriate information on it. That information also must be readable without the use of any special devices (corrective lenses excluded). Ways to achieve this for smaller items, such as indi-vidual tubes, include fold-out or pull-out labels and tags that are firmly affixed to the container.

$10

$12

$14

$16

$18

$20

$22

$24

$26

$28

$30

2008 2009 2010 2011 2012 2013

Bill

ions

$25

$20

$23

$28$27

$26

Source: Modern Distribution Management Vol. 44, No. 23

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Trend from Modern Distribution Management impacting Chemicals

Data removed for sampleline graph



Chemicals MRO market by product category ($M)The following data provide an overview of Chemicals MRO product categories and their share of the total Chemicals MRO market in the U.S. in millions of dollars.

u.s. Market

Adhesives11.2%

Lubricants5.8%

Sealants4.3%

Coatings4.6%

Metal Cutting and Forming19.8%Industrial Oil & Grease

28.5%

Hydraulic Oils10.3%

Paint - Maintenace & Spray Equipment

15.5%

Paint & Spray Equipment 15.5%

Hydraulic Oils 10.3%

Industrial Oil & Grease 28.5%

Adhesives 11.2%

Lubricants 5.8%

Sealants 4.3%

Coatings 4.6%

Metal Cutting & Forming 19.8%

Chemicals MRO market by product category (%)The following data provide an overview of Chemical MRO product categories and their share of the total Chemicals MRO market in the U.S. by percentage.

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$7,495

$5,213

$4,072

$2,933

$2,704

$1,511

$1,207

$1,130

$- $2.0 $4.0 $6.0 $8.0

Industrial Oil & Grease

Metal Cutting and Forming

Paint - Maintenance & Spray Equipment

Adhesives

Hydraulic Oils

Lubricants

Coatings

Sealants

Millionsmdm.com/analytics

Data removed for samplepie chart

Data removed for samplebar graph



u.s. Market

Chemicals regional market analysis The following data represent estimated consumption at the end-user level by U.S. region of Chemicals products in the U.S. based on the Chemicals market size of $XX billion. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

Northeast CentralXX%

Total Market....$XXM

New englandXX%


Mid-AtlanticXX%


South AtlanticXX%

Total Market...$XXM

Southeast CentralXX%


Southwest CentralXX%


Mountain statesXX%


Pacific CoastalXX%


northwest centralXX%


NORTHEAST CENTRAL: Illinois, Indiana, Michigan, Ohio, Wisconsin

SOUTH ATLANTIC: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia

SOUTHWEST CENTRAL: Arkansas, Louisiana, Oklahoma, Texas

PACIFIC COASTAL: Alaska, California, Hawaii, Oregon, Washington

MID-ATLANTIC: New Jersey, New York, Penn-sylvania

NORTHWEST CENTRAL: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota

SOUTHEAST CENTRAL: Alabama, Kentucky, Mississippi, Tennessee

MOUNTAIN STATES: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming

NEW ENGLAND: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont

STATES INCLUDED IN EACH OF THE NINE U.S. REGIONS, ACCORDING TO THE U.S. CENSUS BUREAU:

U.S. TotalTotal Market....$XXM

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Chemicals market by u.s. stateThe following shows the consumption of Chemicals products at the end-user level by state based on the $XX billion total.

State

Est. Demand($millions)

California

Texas

Michigan

Ohio

Illinois

Florida

Pennsylvania

New York

North Carolina

Georgia

Wisconsin

Indiana

New Jersey

Tennessee

Virginia

Minnesota

Washington

Massachusetts

Missouri

Kentucky

South Carolina

Alabama

Connecticut

Arizona

Colorado

Iowa

State


Louisiana

Maryland

Oklahoma

Oregon

Arkansas

Kansas

Mississippi

Utah

Nebraska

New Hampshire

Nevada

Idaho

New Mexico

Maine

West Virginia

Delaware

Rhode Island

South Dakota

Montana

North Dakota

Hawaii

Alaska

Vermont

Wyoming

District of Columbia

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u.s. Market

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Chemicals market: consumption by end-market (2-Digit naics)The following data provide a closer look at Chemicals MRO consumption by U.S. end-market based on 2-digit NAICS.

Total estimated Chemicals MRO product END-MARKET consumption

$XX Billion

manufacturing (31-33):

$XX Million

construction (23):

u.s. Market

$XX Million

other:$XX million

* Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities and not resale items/inventory.

DATA METHODOLOGY NOTE:The data on this page and the following pages represent estimated total consumption at the end-user level of MRO products in the U.S., according to MDM Analytics. These estimates represent purchases at the end-user level in U.S. dollars and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

HEALTH CARE AND SOCIAL ASSISTANCE

MINING, QUARRYING AND OIL AND GAS EXTRACTION

UTILITIES

TRANSPORTATION AND WAREHOUSING

RETAIL TRADE

PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES

WHOLESALE TRADE*

OTHER SERVICES

ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIA-

TION SERVICES

PUBLIC ADMINISTRATION

AGRICULTURE, FORESTRY, FISHING AND HUNTING

INFORMATION

EDUCATIONAL SERVICES

ACCOMMODATION AND FOOD SERVICES

REAL ESTATE AND RENTAL AND

LEASING

ARTS, ENTERTAINMENT AND RECREATION

FINANCE AND INSURANCE

MANAGEMENT OF COMPANIES

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top 20 manufacturing end-markets consuming Chemicalsproducts (6-Digit naics)The following data represent consumption at the 6-digit NAICS end-user level for the top 20 manufacturing (NAICS 31-33) industries consuming Chemicals products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

u.s. Market

NAICS End-Market


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top 20 construction end-markets consuming Chemicalsproducts (6-Digit naics)The following data represent consumption at the 6-digit NAICS end-user level for the top 20 construction (NAICS 23) industries consuming Chemicals products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

u.s. Market

NAICS End-Market


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top 10 OTHER end-markets consuming Chemicals products(6-Digit naics)

The following data represent consumption at the 6-digit NAICS end-user level for the top 10 other industries (excluding manufacturing and construction) consuming Chemicals products in the U.S., according to MDM Analytics estimates. These estimates represent purchases at the end-user level and include the distributor margin. MDM Analytics estimates market demand at the end-user level using its proprietary predictive market model and a combination of government, private and industry databases.

NAICS End-Market


Health Care and Social AssistanceMining, Quarrying and Oil and Gas ExtractionUtilitiesTransportation and WarehousingRetail TradeProfessional, Scientific and Technical ServicesWholesale Trade*Other ServicesAdministrative and Support and Waste Management and Remediation ServicesPublic Administration

Agriculture, Forestry, Fishing and HuntingInformationEducational ServicesAccommodation and Food ServicesReal Estate and Rental and LeasingArts, Entertainment and RecreationFinance and InsuranceManagement of Companies

End-markets that fall under “Other” include:

* Wholesale Trade illustrates end-market, MRO products consumed at distribution facilities and not resale items/inventory.

u.s. Market

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COPYRIGHT AND TERMS OF USE

Copyright © 2015 by Modern Distribution Management and MDM Analytics/Gale Media, Inc. All rights reserved. This report is protected by copyright law and may not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means what-soever, by any person without prior written consent from Gale Media, Inc. This report may not be used in commercial documents without the written permission of the copyright holder. You may make one machine readable copy and/or one print copy for your personal use. You may also include limited excerpts of this content in printed memos, reports and presentations for non-commercial use. We ask that you attribute this information by including “Source: 2014 MRO Market Analysis ©2015 MDM Analytics. All rights reserved.”

DISCLAIMER

This report is for informational purposes only and is provided “as is” without any express or implied warranty. The analy-ses in this report are based solely on information and data that is in the public domain. Any conclusions, findings, opin-ions, or recommendations are based on our own experienced and professional judgment and interpretations given the information available. While all information is believed to be reliable at the time of writing, the information provided here is for reference use only and does not constitute the rendering of legal, financial, commercial, or other professional advice by Gale Media, Inc. or the authors. Any reliance upon the information is at your own risk, and Gale Media, Inc. and the authors shall not be responsible for any liability arising from or related to the use or accuracy of the information in any way. Gale Media, Inc. does not make investment recommendations, in this report or otherwise. Nothing in this report should be interpreted as an opinion by Gale Media, Inc. or the authors on the investment prospects of specific companies.

METHODOLOGY

The data in this MRO Market Analysis uses MDM Analytics’ proprietary predictive modeling, which starts with a public aggregate market size estimate by product category for a given geography. MDM Analytics then uses a combination of public and private databases to allocate estimated demand to deeper geographic levels and to specific customer seg-ments, as defined at the six-digit North American Industry Classification System (NAICS). This approach provides a total market size estimate without regard to market channels.

All estimates in this report are in U.S. dollars and represent the end-user market demand that includes an estimated average distributor margin by product category in the calculations.

DEFINING MRO

In this report, MRO is defined as: maintenance, repair and operations. MRO products are used in production and plant maintenance and may include maintenance supplies (such as cleaning materials), parts or consumables used during production (such as lubricants, safety equipment or tools). Traditionally, companies have not paid as much attention to the procurement of these materials as they have with OEM materials, original equipment manufacturing, or materi-als that go into the product itself. However, in part due to the Great Recession, customers are becoming increasingly more strategic about MRO purchases. Wholesaler-distributors are capitalizing on this shift to provide services that help customers save money and improve processes surrounding MRO procurement.



2014 CHEMICALS MRO MARKET REPORTMDM.COM | IMIDATA.COM

© 2015 Gale Media inc.

MDM Analytics is the leading market analytics firm for industrial and construction products in North America. Since 1987, MDM Analytics has helped clients reach their full market potential with data services, dashboards and sales force manage-ment tools to target high-potential customers and markets.

MDM Analytics is an essential resource for clients seeking to:

• develop a comprehensive view of their market segments;• identify market penetration & untapped potential;• target the highest potential geographic regions, customer segments & product categories;• assess individual customer & prospect potential;• more effectively deploy resources; and• improve sales growth, margins and return on capital.

MDM Analytics’ capabilities are built on a team of seasoned professionals and a unique database delivering reliable market size and segmentation services for more than 200 MRO/OEM products.

Looking for more information? Get a deeper Market Profile:

If you’d like market data at the MSA, county postal code level or would like information about different products, please contact MDM Analytics at 877-224-9677 or email [email protected] and reference this report for your discounted quote. MDM Analytics reports are customizable to help you penetrate deeper into your market.

Thomas P. Galepresident(303) [email protected]

Kristen Gawalisproject manager(720) [email protected]

Learn more about Modern Distribution Management: Learn more about MDM Analytics:

Jenel Stelton-Holtmeiereditor(888) [email protected]

ABOUT THE AUTHORS

Data and trend analysis were produced by Modern Distribution Management (www.mdm.com) and MDM Analytics, formerly Industrial Market Information (www.imidata.com).

Modern Distribution Management and MDM Analytics are divisions of Gale Media, Inc.

Gale Media (www.mdm.com) is a market-leading information services and publishing company. Its two business units – Modern Distribution Management and MDM Analytics – provide knowledge products and services to professionals in industrial product and wholesale distribution markets. Since 1967, MDM has been the definitive resource for distribu-tion management innovative practices, competitive intelligence and market trends through its twice-monthly news-letter, market intelligence reports, books and conferences. MDM Analytics provides proprietary market research and analytic services to profile market share and account potential for industrial products.


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