By Louis Iannaco
In this time of economic uncertainty, technology and innovation continue to play key roles in the success of any product, including adhesives used in the commercial sector.

Whether it’s for a corporate office space, healthcare facility or university setting, glues, like broadloom and modular tile, are designed specifically with high-traffic areas in mind. So what’s new in the world of commercial adhesives today? Much of the buzz has to do with green products and technological advancements or a combination of these two things.

The world of commercial adhesives is rapidly changing due to new technological developments, green issues and the current state of the economy, noted John Lio, marketing manager for DriTac. “Many contractors are now moving to green one-step solutions that offer multiple products in one easy-to-use adhesive pail.”

Sonny Callaham, technical director for Para-Chem, believes nowadays everyone is looking for the best value available. “Manufacturers are striving to offer their best products at the best price. Staying true to the adage, ‘time is money,’ fast-paced installation has become a major push. Our technical development department is testing new greener and moisture-resistant adhesives daily. Since Para-Chem is a chemical company and an adhesive manufacturer, we have developed our own proprietary moisture-resistant polymers that can be added to our adhesives.”

Moisture-resistant adhesives are great for new construction projects, he explained. “This allows the flooring contractor to install the floor covering sooner, without the expense of a moisture barrier. Para-Chem does not recommend the use of anyone’s moisture-resistant adhesives on existing slabs that have excessive moisture. The root cause of the moisture should be found and corrected, prior to the installation of floor covering. Para-Chem has seen a tremendous increase in sales over the last quarter compared to the same time last year. Commercial projects are finally being released for construction and stimulus funds are being distributed.”

Rainer Blair, president and CEO of Mapei Americas, believes the overriding trend is for cost-effective, superior-performance and environmentally friendly adhesives. Mapei is aggressively growing its floor covering installation system sales as a result of the company’s recent product line re-design, which streamlined and optimized the company’s offerings to distributors and contractors.

“All our technological advances are carried out with green innovation in mind,” he added. “Mapei has been manufacturing products with low VOCs since 1980, and with the development of each new product our research and development chemists review all possibilities for using recycled materials. We have the largest line of green products that help contribute valuable points to LEED-certified projects.”

According to Scott Banda, Bostik’s market manager, ceramic installation systems, the sale of adhesives/sealants/coatings mirrors the overall construction sector. “The consensus seems to be that the sector is down between 25% to 30% versus the same period in 2008. Expectations are that by the end of 2009 to the first quarter of 2010, things should be starting to improve from a revenue perspective.

“As far as technological developments/advancements/green issues are concerned,” he continued, “this is were the greatest opportunities lie for manufacturers.

Banda added, “Research and development is now focused on eliminating VOC content and incorporating both recycled and renewable content into more and more products. As the popularity of green building continues to expand, the demand for greener and greener products is stronger than ever.”

Adhesives manufacturers, like their floor covering counterparts, are also re-evaluating the marketplace when it comes to sales expectations.

The first half of 2009 has been “very exciting” for Para-Chem, noted Callaham. “We have seen tremendous growth in all three of our divisions: adhesives, polymers and coatings. We’re looking to exceed all of our sales projections for 2009. In 2008, everyone was surprised with the stoppage of work so suddenly. Now, we have taken a step back and prepared for the slow economy. We have done this by constantly evaluating raw materials, evaluating freight, reducing SKUs and just genuinely working at being more profitable as a whole without compromising customer service.”

Crystal ball projections

Greg Wood, president of AAT, said while business has been soft since the fourth quarter of 2008, “order volume/frequency has increased this quarter and a general up tick is anticipated through the third and fourth quarters. So far this year, we’ve made significant progress in advancing our position in a number of key markets. When the industry returns to growth AAT has set the table so that we are in a position to capitalize.”

Blair agreed, noting, after the economic downturn, which he believes reached a crisis stage during the second half of 2008 and the first quarter of 2009, “we’re seeing a stabilization of construction activity at a significantly lower level. Despite the headwind, Mapei was able to significantly grow sales of its floor covering installation products.”

Lio noted, “There’ve been signs of improvement and confidence seems to be growing.”

Callaham is enthusiastic about the rest of the year, noting, with the stimulus funds now in play, “Para-Chem is optimistic for the remainder of 2009. Government buildings, educational facilities and healthcare facilities are benefiting from these funds. Every day additional funds are being released for projects all across the country.”

Banda sees products containing greener ingredients and packaging “continuing to emerge, while revenues will begin to stabilize.”

According to Blair, much more needs to happen before things will ultimately get better for adhesives in the commercial segment. “We’re not through the storm yet, as there is still a great deal of bad debt and housing inventory to be digested in the coming months.

“Additionally,” he concluded, “the commercial construction market has just begun its down-cycle. There will be more consolidation in manufacturing, distribution and contracting companies before the construction industry begins its journey along the road to recovery, which will be at a moderate but more sustainable pace.”