US Demand for Coated Fabrics to Reach 655 Million Square Yards

 US demand for coated fabrics is expected to grow 2.1 percent per annum, reaching 655 million square yards in 2012.  Sales will be spurred by a rebound in motor vehicle production from weak years in 2007 and 2008.  In addition, rising protective clothing output and growth in building construction will contribute to overall gains.  In value terms, coated fabric sales will rise to $3.0 billion in 2012. Value gains will be driven by price increases, reflecting rising raw material costs, as well as by increased sales of more expensive, better performing products.  These and other trends are presented in Coated Fabrics, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

In 2007, the motor vehicle market -- including upholstery, trim, airbags and truck covers -- accounted for the largest share of coated fabric demand, with 28 percent.  Coated fabric sales in the motor vehicle industry will increase by 2012 as a result of gains in motor vehicle production (following a weak short term outlook).  However, the fastest growth in coated fabric demand will come from the protective clothing market.  Increased sales in this segment will stem from rising military spending, concerns over the preparedness of first responders in emergency situations and modest growth in the food, chemical and pharmaceutical industries.

Of the three major fabric types, nonrubber-coated fabrics accounted for more than three-quarters of all sales in 2007.  Within this category, vinyl-coated fabrics are the most commonly used material.  Vinyl is a relatively low-cost, durable and easy to clean coating, and as a result is utilized in a wide range of applications, including awnings, banners, covers, tarpaulins and upholstery, among others. 

Rubber-coated fabrics, including those coated with natural rubber, neoprene, silicone rubber and butyl rubber, will post the fastest gains through 2012.  Rubber’s resistance to degradation and flexibility make rubber-coated fabrics the material of choice for airbags and certain types of protective clothing.  Growth in these applications will lead to considerable sales opportunities for manufacturers of rubber-coated fabrics.  Through 2012, polyester will remain the most commonly used coated fabric substrate because of its low cost and versatility.  Sales of coated nylon will post the fastest gains.  

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.