{"id":6904,"date":"2013-06-01T00:00:00","date_gmt":"2013-06-01T00:00:00","guid":{"rendered":"https:\/\/insulation.org\/io\/articles\/2011-2012-industry-measurement-survey-commercial-and-industrial-mechanical-insulation-market-moving-forward\/"},"modified":"2017-06-09T20:25:34","modified_gmt":"2017-06-09T20:25:34","slug":"2011-2012-industry-measurement-survey-commercial-and-industrial-mechanical-insulation-market-moving-forward","status":"publish","type":"articles","link":"https:\/\/insulation.org\/io\/articles\/2011-2012-industry-measurement-survey-commercial-and-industrial-mechanical-insulation-market-moving-forward\/","title":{"rendered":"2011\u20132012 Industry Measurement Survey: Commercial and Industrial Mechanical Insulation Market Moving Forward"},"content":{"rendered":"

The
\nmechanical insulation industry, and the economy as a whole, continues to
\nrebound from the recent recession. The recovery is slow and varies by region,
\nmarket segment, and even within states. The good news is that the industry is
\nslowly recovering and the signs are there, although fragile, for continued
\nmoderate growth. The industry is moving forward.<\/span><\/p>\n

After
\nyears of significant growth (2003–2008), the commercial and industrial
\nmechanical insulation market saw a decline in 2009 of over 27%. The 2010 survey
\nindicated that the industry had potentially bottomed out and was beginning to
\nrecover. Like many other industries, we soon found that optimism was unfounded
\nand we had encountered a false bottom. 2011 yielded a 14.7% decline from 2010,
\nwhich—for all practical purposes—erased the gains of 2005–2008. Margin erosion
\nrepresented a significant portion of the 2011 decline. It does appear, however,
\nthat the bottom has been reached, with 2012 showing 3.5% growth over 2011.<\/span><\/p>\n

While the growth in 2012 is encouraging, it is
\nunfortunately beginning from a smaller base, and the general economic recovery
\nis still tenuous and subject to sudden change. Thus it is not a question of
\nwhether the recovery has begun, but at what pace it will continue. For the
\nfirst time, the industry survey asked respondents to provide information
\nrelative to growth expectations for 2013 and 2014. The respondents were
\nconfident about the recovery and indicated they were expecting, on average, a
\ntotal of 7% and 8.9% growth, respectively.<\/span><\/p>\n

The survey was sponsored by the National Insulation
\nAssociation (NIA) Foundation for Education, Training, and Industry Advancement
\n(Foundation). The goal of the survey is to obtain valuable data regarding
\nsales, market size, and growth for the U.S. commercial and industrial
\nmechanical insulation market. Since the first survey was completed in 1997, the
\nmarket has shown a net growth that equates to a 2.4% annual compounded growth
\nrate. While that compounded growth rate may not seem overly impressive, you
\nmust consider that the recent recession drove an industry decrease of over 35%
\nfrom 2009 through 2011. Over the 16-year period in which the survey has been
\nconducted, the range of growth has varied from over 22% in 2005, to a decrease
\nof more than 27% in 2009. That is a severe variance in a relatively short
\nperiod of time.<\/span><\/p>\n

While
\nsurvey results are always subject to individual interpretation, the following
\ntakeaways have been generated through discussions held both before and after
\nthe tabulation of survey data.<\/span><\/p>\n