Presented at Global Gypsum Conference 2008 by Bob Bruce PhD
The gypsum industry in the USA has shown declining shipments and profits for 18 months now. The extended period of growth in construction driven by easily available mortgage funds was indeed unsustainable. Gypsum board shipments are now down over 30% and the near future prospects are not good with housing starts and permits down 50% from two years ago. House sales and prices continue to fall and there are 18 more months of sub-prime mortgage adjustments and foreclosures to deal with. Consumer confidence is also dropping, resulting in a slowdown in renovation activity.
The commercial construction activity has also peaked, meaning that all markets for gypsum board in the USA are either depressed or declining. The financial crisis brought about by the sub-prime mortgage problem has become international, impacting financial centres outside the USA. Building permits and house prices in Europe have levelled off or gone into decline.
In light of this bad news for the gypsum industry, it is perhaps useful to stand back and review the overall growth potential for gypsum around the world. This paper will review the factors that will impact on the growth of gypsum markets as well as consider the ability for gypsum products to compete with other materials in the growing construction market.
This document is available as a 9 page report and a 37 page slide presentation.
