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Supportive Legislation and the Recovering Construction Sector Opens Avenues for CIS/CEE Construction Chemicals and Materials Markets - The near future will offer growing opportunities for construction chemicals and materials in emerging regions in Central and Eastern Europe (CEE) and Commonwealth of Independent States (CIS)
Supportive Legislation and the Recovering Construction Sector Opens Avenues for CIS/CEE Construction Chemicals and Materials Markets

 

NewswireToday - /newswire/ - London, United Kingdom, 2011/03/03 - The near future will offer growing opportunities for construction chemicals and materials in emerging regions in Central and Eastern Europe (CEE) and Commonwealth of Independent States (CIS).

   
 
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The construction chemicals and materials market is gradually recovering after the economic downturn. The improvement in the construction industry, supported by European directives as well as government incentives, is opening avenues for market growth.

New analysis from Frost & Sullivan (chemicals.frost.com), Chemicals and Materials Growth Opportunities for Construction in CEE and CIS, finds that the markets earned revenues of EUR 5,901.8 million in 2010 and estimates this to reach EUR 7,660.4 million in 2017. The following products are covered in the research: paints and coatings, adhesives and sealants, insulation materials and plastic components. The research analyses markets in the CIS region covering Belarus and Ukraine and in CEE including the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

"Construction chemicals and materials such as paints and coatings, insulation materials and also plastic components are gaining increasing importance as a means of enhancing the properties of end products," notes Frost & Sullivan Research Analyst Anna Jarosik. "Market participants are investing in new technologies and paying increasing attention to the environmental as well as health care profile of their products."

As it is a fragmented market, developing customer relationships has become very important. Participants are distinguishing themselves through innovative and multifunctional products that are tailored to customer needs.

The requirements of end products are often driven by European legislation such as REACH, recycling directives, 'energy passports' and volatile organic compounds (VOC) emission, which focus on environment and human health. Such requirements are likely to become more stringent and encourage further improvements in all construction chemicals and materials as they strive to achieve the desired properties. This will propel market growth.

For a volume-driven and low-margin market like construction, the additional costs associated with paints and coatings, adhesives and sealants, insulation materials and plastic components need to be warranted in the form of improved properties, quality and efficiency. Customers will turn to cheaper alternatives wherever possible and so producers must be aware of competing technologies and ensure their products deserve the extra cost.

A close relationship between construction chemicals and materials producers and customers is mutually beneficial, as the customer can obtain help and advice on the products, while the producers can obtain feedback on potential improvements or insight into new applications. It is also important for companies to provide innovative and comprehensive solutions and maintain a cost consciousness approach.

"Construction chemicals and materials manufacturers need to be able to tailor their products to match customer requirements," concludes Jarosik. "Forming a partnership with customers can encourage innovative applications and developments, as producers can focus on specific properties that are necessary for success in a particular end use market."

For more information on this study, please send your complete contact details to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com.

Chemicals and Materials Growth Opportunities for Construction in CEE and CIS is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: Construction & Utilities CEO 360 Perspective – Market Highlights & Growth Opportunities for Chemicals and Materials, Indian Construction Chemicals Market, Latin American Market for Construction Chemicals and Southeast Asian Market for Construction Chemicals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Chemicals and Materials Growth Opportunities for Construction in CEE and CIS / M637 - 39

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Supportive Legislation and the Recovering Construction Sector Opens Avenues for CIS/CEE Construction Chemicals and Materials Markets

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Publisher Contact: Joanna Lewandowska 
+48 22 390 41 46 joanna.lewandowska[.]frost.com
 
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