The flip side of a challenge is often an opportunity. And 2024 will be a great time for tape converters to start pursuing opportunities in an industry that has been facing some challenges: building and construction.
There’s no question that the building and construction industry has been pushing the metaphorical rock uphill in recent years. The pandemic disrupted supply chains and inflated the cost of many raw building materials. Sustainability, meanwhile, has become a growing trend in global construction, putting new pressures on manufacturers of building products. The industry has also been dealing with a labor shortage that has contributed to decreased capacity, further exasperating America’s housing shortage.
But the industry is responding. Part of that response involves greater adoption of pressure-sensitive adhesive (PSA) tapes — the tapes market for building and construction is forecast to grow at a CAGR of 4.4% from 2023-2031 — and the expertise and services provided by tape converters. Here are three things to think about as you consider the business case for growing your business in building and construction.
More building product manufacturers are turning to PSA technology
The building and construction industry is undergoing a technological shift when it comes to fastening and adhering materials. Many materials manufacturers are discovering that PSA tapes offer performance characteristics that match or exceed the butyl-based adhesives that have dominated the industry. Throw in that PSAs are non-toxic and easy to apply, and the case for their use in a wide range of applications becomes very compelling.
PSA technology also plays into the industry’s growing focus on sustainability. Building operations account for approximately 30% of global energy consumption and 26% of global energy-related emissions, according to the International Energy Agency. Converted PSA tapes can be part of the solution. In fact, they’re being adopted for a variety of applications that can help improve a building’s energy efficiency. This includes sealing gaps in building envelopes, installing vapor barrier products, sealing gaps around window and door frames, sealing gaps in ductwork, and insulating pipes and ductwork.
Beyond their role in creating more energy-efficient buildings, PSA tape technology is recognized by both manufacturers and contractors as being easy to use, allowing faster installation by less skilled labor. As the building and construction industry looks for creative ways to deal with its labor crunch, this ease-of-use benefit is a real differentiator for PSA products.
Commercial and residential building forecasts are looking up
The building and construction industry has had to traverse a rocky path in recent years. But forecasts for 2024 and beyond indicate there may be a smoother road ahead.
A commercial construction surge has been underway since the passage of the Infrastructure Investment and Jobs Act (IIJA), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, and the Inflation Reduction Act (IRA) in 2021-2022. This surge has included work to meet the building needs for industries such as semiconductors, electrical/battery, and computers. Commercial construction has doubled in the past two years, according to the U.S. Department of the Treasury.
Things may be looking up in residential construction as well. The National Association of Realtors noted a boost in home construction at the end of 2023. It expects modest, though continued, growth in 2024.
All of this is great news for many business owners and potential homebuyers. As sales increase of building materials incorporating PSAs, it could also be great news for tape converters.
Converters add value that building material manufacturers need
As building material manufacturers invest in PSAs, the demand for converters’ capabilities will grow. Converters can provide unique tape put-ups that meet manufacturers’ needs for slitting, die-cutting, coating, laminating, printing, or packaging. They can produce prototypes that can help building material manufacturers visualize new product ideas, and technical support that ensures those ideas are optimized for an application.
Converters may also provide significant logistical value. Those in hotter commercial or residential construction markets have an opportunity to leverage their proximity and inventory management capabilities to ensure products are in the hands of the people who need them, when they need them. Converters can enhance these capabilities by partnering with a PSA provider — such as Avery Dennison — that provides low MOQs and quick turnaround times on many products.
The bottom line: Make 2024 your year for growing in Building and Construction
The building and construction industry has faced some challenges in recent years. But it’s evolving to respond. That evolution includes the increased use of PSA tape technology and a reliance on the services and capabilities that converters provide.
If you’re already doing business in the industry, then you have a foot in the door. Be aware of the evolving opportunity and look for ways to expand your presence. If you’re not doing business in the industry, consider it as a chance to diversify and grow in 2024 and beyond.
In either case, leverage your relationship with Avery Dennison. We offer many of the PSA products the building and construction industry needs and can create customized formulations to supplement products in our standard portfolio. We can also provide the service, support, and insights you need to make the most of this opportunity.
Contact your Avery Dennison account manager to get started.
