NEW YORK, NY–(EMWNews – August 11, 2008) – Weakened by a down economy, the nearly $14

billion market for polystyrene and polyurethane foam may see its

resurrection in the move toward sustainable and green construction

products, according to a study from SBI.

U.S. shipments of all polystyrene foam products were valued at an estimated

$7.2 billion in 2007, and grew at a compound annual growth rate of 2.8%

between 2002 and 2007, the report found. Shipments of all products

manufactured with polyurethane foam totaled an estimated $6.4 billion in

2007, a CAGR of 2.4% for the 2002-2007 period. During these years,

consumers and professional contractors increasingly purchased foam-based

products primarily for insulation to reduce the skyrocketing energy costs

for heating. But by mid-2007 as new construction slowed during the start of

the sub-prime mortgage crisis, and the price of oil climbed to record

heights, the demand for the plastic foam began to dwindle.

“The U.S. plastic foam market is at a critical juncture, where

manufacturers must grapple with escalating production costs and reduced

demand from end-users coping with construction and remodeling stoppages

from the economic slowdown,” notes Don Montuori, vice president of

publishing for SBI. “Several dynamics are in place that will affect the

marketing and distribution of plastic foams used for construction, allowing

manufacturers to stay afloat as the industry shifts toward ‘greener’

pastures.”

Currently, the primary audience for green building materials is architects,

designers and spec writers on whom builders rely for materials

specifications. This may shift toward home builders and consumers as

residential green markets grow.

SBI’s report, “Polystyrene and Polyurethane Foam Products in U.S. Building

and Construction,” examines the state of the U.S. industry for polyurethane

and polystyrene foam construction products and how manufacturers are coping

with a rapidly changing market in which consumers increasingly crave

offerings that are environmentally friendly, innovative, and durable. For

further information visit:

http://www.sbireports.com/Polystyrene-Polyurethane-Foam-1711123/.

About SBI

SBI publishes research reports in the industrial, construction, materials

and consumer goods markets. SBI also offers a full range of custom

research services. For more information visit http://www.sbireports.com,

or contact Jenn Tekin at 240-747-3015 or [email protected].