The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
October 7, 2022
Holcim closes Polymers Sealants North America acquisition
- Leading provider of coating, adhesive and sealant solutions with 2022 net sales of USD 100 million
- Expanded waterproofing and coating solutions deliver significant roofing synergies
- Accelerates Holcim’s growth in Solutions & Products to reach 30% of Group net sales by 2025
Holcim has completed the acquisition of the Polymers Sealants North America (PSNA) division of Illinois Tool Works. PSNA is a leader in coating, adhesive and sealant solutions with 2022 estimated net sales of USD 100 million. With more than 150 employees and manufacturing plants in California, Arizona, Texas, Georgia and Massachusetts, PSNA will accelerate the growth of Solutions & Products, especially in waterproofing and coatings. PSNA’s innovation-driven approach is highly complementary to Holcim’s existing building envelope business and is expected to generate significant synergies.
Jamie Gentoso, Head Solutions & Products: “With PSNA we are broadening our waterproofing and coatings offering while delivering significant synergies with our roofing business. Building on their proven engineering and technical expertise, we will accelerate new product development and leading solutions together. I warmly welcome all PSNA employees into the Holcim family and look forward to investing in this business’ next era of growth together. By expanding our building envelope offering, together we can play a bigger role in providing innovative and sustainable solutions for energy-efficient buildings.”
PSNA’s innovation-driven solutions are used in construction as well as other industries such as aerospace composites and wind energy. PSNA is ideally positioned to capitalize on high-growth areas such as commercial re-roofing, green building and energy efficiency. This transaction adds to Holcim’s other recent acquisitions in roofing and insulation, from Firestone Building Products, Malarkey Roofing Products to SES. Pro-forma net sales for Holcim’s roofing and insulation business are on track to reach CHF 3.5 billion for 2022.
About Holcim
Holcim builds progress for people and the planet. As a global leader in innovative and sustainable building solutions, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy Holcim is becoming a net zero company, with its people and communities at the heart of its success. The company is driving circular construction as a world leader in recycling to build more with less. Holcim is 70,000 people around the world who are passionate about building progress for people and the planet through four business segments: Cement, Ready-Mix Concrete, Aggregates and Solutions & Products.
Learn more about Holcim on www.holcim.com, and by following us on LinkedIn and Twitter
https://www.holcim.com/media/media-releases/polymers-sealants-north-america-closing
October 6, 2022
In April of 2022 Dr. Reinhart Schiffauer passed away at his home in Crosslanes, WV, after a life
time of doing whatever he wanted to do whenever he wanted to do it. Reinhart received his
BS, MS and PhD in Chemistry from Technical University Vienna, Austria.
In 1970 he began his career working for Shell Chemicals in the UK, Germany, Netherlands and
Houston, TX for 14 years in the Applications Research/Technical Service for Rigid Polyurethane
foam systems and Flexible Polyurethane foams. He was a key contributor in the development of
conventional polyols, formulation development, and antioxidants for scorch. One of his best known
achievements from this stage of his illustrious career was the development of the mathematical
correlation of foam properties and influencing variables (Foam Prediction Program) which is still
used to this day.
From 1984 to 1992 he was employed by Union Carbide first in Switzerland as a Tech Service
Chemist for PU foam catalysts then in S. Charleston, WV, as a Senior Research Chemist in PU
additives. He was responsible for the development of surfactants, catalysts and formulations for
ether slab, ester slab and HR slab technology. Reinhart was the Team leader in the development
of ULTRACEL TM high resilience foam technology.
From 1992 until his formal work retirement in 2008 he was employed by ARCO Chemical, Lyondell
Chemical and Bayer all at the S. Charleston Tech Center as a Senior Principal Scientist in Flexible
PU applications. He carried out technical service and new products introduction for flexible
polyurethane foams in the USA, Mexico and Canada with an advisory role for Asia and Latin
America.
From 2013 to 2022 he was a principal with RS&M Technologies Group sharing his extensive
knowledge and experience with the PU foam industry.
In addition to his extensive list of patents, during his long career he provided lectures/papers at
international urethane conferences. Reinhart was a true “character” in the flexible foam world who
lived life to its fullest and expressed few if any regrets. He will be sorely missed by all his many
friends and the industry.
Courtesy of Glenn DePhillipo
October 6, 2022
In April of 2022 Dr. Reinhart Schiffauer passed away at his home in Crosslanes, WV, after a life
time of doing whatever he wanted to do whenever he wanted to do it. Reinhart received his
BS, MS and PhD in Chemistry from Technical University Vienna, Austria.
In 1970 he began his career working for Shell Chemicals in the UK, Germany, Netherlands and
Houston, TX for 14 years in the Applications Research/Technical Service for Rigid Polyurethane
foam systems and Flexible Polyurethane foams. He was a key contributor in the development of
conventional polyols, formulation development, and antioxidants for scorch. One of his best known
achievements from this stage of his illustrious career was the development of the mathematical
correlation of foam properties and influencing variables (Foam Prediction Program) which is still
used to this day.
From 1984 to 1992 he was employed by Union Carbide first in Switzerland as a Tech Service
Chemist for PU foam catalysts then in S. Charleston, WV, as a Senior Research Chemist in PU
additives. He was responsible for the development of surfactants, catalysts and formulations for
ether slab, ester slab and HR slab technology. Reinhart was the Team leader in the development
of ULTRACEL TM high resilience foam technology.
From 1992 until his formal work retirement in 2008 he was employed by ARCO Chemical, Lyondell
Chemical and Bayer all at the S. Charleston Tech Center as a Senior Principal Scientist in Flexible
PU applications. He carried out technical service and new products introduction for flexible
polyurethane foams in the USA, Mexico and Canada with an advisory role for Asia and Latin
America.
From 2013 to 2022 he was a principal with RS&M Technologies Group sharing his extensive
knowledge and experience with the PU foam industry.
In addition to his extensive list of patents, during his long career he provided lectures/papers at
international urethane conferences. Reinhart was a true “character” in the flexible foam world who
lived life to its fullest and expressed few if any regrets. He will be sorely missed by all his many
friends and the industry.
Courtesy of Glenn DePhillipo
October 6, 2022
If supply chain crunch is finally easing, why is inflation so high?
Fed supply chain pressure index headed in opposite direction of inflation
Greg Miller Follow on Twitter Sunday, October 2, 2022
4 minutes read
Listen to this article
0:00 / 6:01BeyondWords
Remember back in 2021 when inflation was “transitory” and surging consumer prices were blamed on the supply chain crisis? The Fed and macro investors became intensely interested in chaos at the ports. The focus on bottlenecks spurred the Federal Reserve Bank of New York to create a new barometer called the Global Supply Chain Pressure Index (GSCPI) in January.
The implication was that if supply chain pressure reduced, inflation would ease. It hasn’t worked out that way.
The GSCPI (data here), which roughly tracked inflation trends in 2021, has fallen sharply in 2022. The monthly measure has plunged 66% from its peak, from 4.31 standard deviations above average in December to 1.47 standard deviations above average in August.
The monthly U.S. inflation measure (headline Consumer Price Index) has gone in the opposite direction over the same period, up 17%, from 7.04% (year-over-year increase) in December to 8.26% last month.
Other supply chain indicators also fall
It’s not just the GSCPI that’s unmoored from inflation.
Flexport created a measure of supply chain pressures called the Ocean Timeliness Indicator (OTI). The OTI measures the average number of days cargo takes from the time it leaves a factory in Asia to the time it exits the terminal gates in the U.S. or Europe.
The curve of the trans-Pacific eastbound OTI roughly mirrors the GSCPI. After peaking at 113 days in the week ending on Jan. 23, it fell 24% to 86 days on the week ending on Sept. 25.
Spot freight rate indexes have likewise trended in the opposite direction from inflation in 2022. The weekly Drewry World Container Index peaked at $10,377 per forty-foot equivalent units (excluding premiums) in the week ending on Sept. 23, 2021. It has since fallen 61% to $4,014 per FEU.
Yet another example: Container bookings have followed a similar downward slope as the GSCPI, OTI and Drewry World Container Index. FreightWaves SONAR’s Container Atlas features a proprietary index of bookings based on scheduled date of departure to the U.S. This index saw a sharp decline starting in May. Between its late April high and Sunday, it has fallen 35%.
Why hasn’t supply chain easing helped inflation?
Unlike in late 2021, when retail execs on conference calls talked about import delays and marking up goods to pass along surging freight costs, they’re now talking about having too much inventory in warehouses and discounting goods to clear the excess.
If the supply chain crunch was such a major driver of inflation, why are so many indicators pointing to an easing of supply chain pressures at the same time inflation remains exceptionally high?
One theory is that the supply chain was at least something of a red herring. Another is that supply chain pressures are indeed easing, but they’re still way above pre-COVID levels. In other words, the supply chain crunch is not over yet, so the positive payoff for inflation is yet to come.
The GSCPI, while down sharply from its peak, is still almost six times higher than it was in 2017-19. Flexport’s OTI is still more than double its pre-COVID level.
The Drewry World Container Index is currently three times higher than it was at this time of year in 2019. The FreightWaves SONAR Container Atlas Ocean TEU index for US-bound cargoes is currently 35% higher than it was at this time in 2019.
Meanwhile, U.S. imports remain near all-time highs and have yet to materially fall. According to Descartes, U.S. imports in August were flat versus July and up 18% versus August 2019, pre-COVID. Customs data on FreightWaves SONAR shows that September imports were very close to September 2021 levels.
Ship-position data and queuing lists showed 109 container vessels waiting off U.S. ports as of Sunday. That’s down from a high of over 150, but still far above the pre-COVID normal in the single digits.
Signs of hope but supply chain crunch not over
Flexport addressed the status of the supply chain squeeze in a presentation on Thursday. The consensus: Yes, it’s winding down, but it’s too soon to declare victory.
Flexport Chief Economist Phil Levy highlighted the role of the supply chain crunch in public policy. “It has fed into a lot of macroeconomic policy and into what the Fed has been doing. To the extent one thought supply chain problems would get fixed, that was part of the rationale for calling [inflation] transitory.”
On a positive note, Levy pointed to the drop in the cargo transit times measured by the OTI. “If you look at the [historical] pattern, it gets better around late spring and early summer and then in late summer, it starts to get worse. We saw that in 2020 and in 2021. We waited to see that in 2022 and it didn’t happen. To me, that’s notable. I would put that down as a sign of hope.”
On the other hand, Levy noted that U.S. consumer spending on durable goods continues to be surprisingly strong. “Durable consumption is down from the peak in the spring, but we’re still consuming 20% more durables [than pre-pandemic]. And nondurables are not even that far off the peak. So, we have not seen a big consumption drop-off. There’s still a lot of demand out there.”
October 6, 2022
If supply chain crunch is finally easing, why is inflation so high?
Fed supply chain pressure index headed in opposite direction of inflation
Greg Miller Follow on Twitter Sunday, October 2, 2022
4 minutes read
Listen to this article
0:00 / 6:01BeyondWords
Remember back in 2021 when inflation was “transitory” and surging consumer prices were blamed on the supply chain crisis? The Fed and macro investors became intensely interested in chaos at the ports. The focus on bottlenecks spurred the Federal Reserve Bank of New York to create a new barometer called the Global Supply Chain Pressure Index (GSCPI) in January.
The implication was that if supply chain pressure reduced, inflation would ease. It hasn’t worked out that way.
The GSCPI (data here), which roughly tracked inflation trends in 2021, has fallen sharply in 2022. The monthly measure has plunged 66% from its peak, from 4.31 standard deviations above average in December to 1.47 standard deviations above average in August.
The monthly U.S. inflation measure (headline Consumer Price Index) has gone in the opposite direction over the same period, up 17%, from 7.04% (year-over-year increase) in December to 8.26% last month.
Other supply chain indicators also fall
It’s not just the GSCPI that’s unmoored from inflation.
Flexport created a measure of supply chain pressures called the Ocean Timeliness Indicator (OTI). The OTI measures the average number of days cargo takes from the time it leaves a factory in Asia to the time it exits the terminal gates in the U.S. or Europe.
The curve of the trans-Pacific eastbound OTI roughly mirrors the GSCPI. After peaking at 113 days in the week ending on Jan. 23, it fell 24% to 86 days on the week ending on Sept. 25.
Spot freight rate indexes have likewise trended in the opposite direction from inflation in 2022. The weekly Drewry World Container Index peaked at $10,377 per forty-foot equivalent units (excluding premiums) in the week ending on Sept. 23, 2021. It has since fallen 61% to $4,014 per FEU.
Yet another example: Container bookings have followed a similar downward slope as the GSCPI, OTI and Drewry World Container Index. FreightWaves SONAR’s Container Atlas features a proprietary index of bookings based on scheduled date of departure to the U.S. This index saw a sharp decline starting in May. Between its late April high and Sunday, it has fallen 35%.
Why hasn’t supply chain easing helped inflation?
Unlike in late 2021, when retail execs on conference calls talked about import delays and marking up goods to pass along surging freight costs, they’re now talking about having too much inventory in warehouses and discounting goods to clear the excess.
If the supply chain crunch was such a major driver of inflation, why are so many indicators pointing to an easing of supply chain pressures at the same time inflation remains exceptionally high?
One theory is that the supply chain was at least something of a red herring. Another is that supply chain pressures are indeed easing, but they’re still way above pre-COVID levels. In other words, the supply chain crunch is not over yet, so the positive payoff for inflation is yet to come.
The GSCPI, while down sharply from its peak, is still almost six times higher than it was in 2017-19. Flexport’s OTI is still more than double its pre-COVID level.
The Drewry World Container Index is currently three times higher than it was at this time of year in 2019. The FreightWaves SONAR Container Atlas Ocean TEU index for US-bound cargoes is currently 35% higher than it was at this time in 2019.
Meanwhile, U.S. imports remain near all-time highs and have yet to materially fall. According to Descartes, U.S. imports in August were flat versus July and up 18% versus August 2019, pre-COVID. Customs data on FreightWaves SONAR shows that September imports were very close to September 2021 levels.
Ship-position data and queuing lists showed 109 container vessels waiting off U.S. ports as of Sunday. That’s down from a high of over 150, but still far above the pre-COVID normal in the single digits.
Signs of hope but supply chain crunch not over
Flexport addressed the status of the supply chain squeeze in a presentation on Thursday. The consensus: Yes, it’s winding down, but it’s too soon to declare victory.
Flexport Chief Economist Phil Levy highlighted the role of the supply chain crunch in public policy. “It has fed into a lot of macroeconomic policy and into what the Fed has been doing. To the extent one thought supply chain problems would get fixed, that was part of the rationale for calling [inflation] transitory.”
On a positive note, Levy pointed to the drop in the cargo transit times measured by the OTI. “If you look at the [historical] pattern, it gets better around late spring and early summer and then in late summer, it starts to get worse. We saw that in 2020 and in 2021. We waited to see that in 2022 and it didn’t happen. To me, that’s notable. I would put that down as a sign of hope.”
On the other hand, Levy noted that U.S. consumer spending on durable goods continues to be surprisingly strong. “Durable consumption is down from the peak in the spring, but we’re still consuming 20% more durables [than pre-pandemic]. And nondurables are not even that far off the peak. So, we have not seen a big consumption drop-off. There’s still a lot of demand out there.”
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