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The Best-Paying Construction Jobs

construction
Archives, Commentary, Global Trade Daily

The Best-Paying Construction Jobs

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It’s already been a busy year for construction, thanks to surges in new housing development and renovations, as well as changes to businesses brought on by the COVID-19 pandemic. These factors will likely accelerate already strong growth projections for the industry made prior to 2020. According to the U.S. Bureau of Labor Statistics (BLS), construction employment was projected to grow at a faster pace than average between 2019 and 2029—adding 4% more jobs, compared to 3.7% for other industries. Among the jobs anticipated to be most in demand are solar photovoltaic installers (up 50.5%), tile and stone workers (up 8.6%), and electricians (up 8.4%).

Those and other construction occupations tend to be financially rewarding relative to the level of education required for entry. The vast majority of construction jobs require no formal education or a high school diploma, yet they pay $906 per week—nearly as much as the $938 median weekly earnings of someone with an associate’s degree from college. The median earnings for high school graduates is $781 a week, while those without a diploma make $619.

While construction workers are generally paid well, their paychecks vary widely depending on where they work. The West Coast (including Alaska and Hawaii), pockets in the Midwest, and several Northeast states all pay construction workers higher hourly wages than the rest of the country. Hawaii and Illinois, for example, have a median hourly wage above $34, while Alaska and Massachusetts are around $30 per hour. Meanwhile, several states across the South pay as low as $18 per hour for construction work.

The type of construction work is also a major factor in how well employees are paid. Many of the higher rates fall to areas of specialization, like elevator installers, boilermakers, and pile-driver operators. However, general construction supervisors, inspectors, and more common tradespeople like electricians can also earn higher pay rates.

To find the best-paying construction jobs, researchers at Construction Coverage analyzed the latest data from the BLS. Occupations were ranked according to their median hourly wage. Researchers also included median annual wages, total and projected 10-year employment numbers, and the percentage of workers that are self-employed for each occupation.

Here are the best-paying construction jobs in the United States.

Occupation Rank Median hourly wage Median annual wage Total employed nationally Projected 10-year employment growth Percentage of workers that are self-employed

 
Elevator and Escalator Installers and Repairers     1    $42.57 $88,540 24,730 +6.6% N/A
First-Line Supervisors of Construction Trades and Extraction Workers     2    $32.61 $67,840 614,080 +4.8% 8.0%
Boilermakers     3    $31.42 $65,360 14,020 +0.9% N/A
Pile Driver Operators     4    $30.47 $63,370 3,820 +4.4% 2.2%
Construction and Building Inspectors     5    $30.22 $62,860 113,770 +3.2% 6.8%
Tapers     6    $28.58 $59,450 16,320 -4.0% 17.8%
Electricians     7    $27.36 $56,900 656,510 +8.4% 5.0%
Rail-Track Laying and Maintenance Equipment Operators     8    $27.10 $56,370 17,590 +3.4% N/A
Plumbers, Pipefitters, and Steamfitters     9    $27.08 $56,330 417,440 +4.3% 8.3%
Brickmasons and Blockmasons     10    $26.48 $55,080 59,940 -6.4% 26.8%
United States     –    $23.37 $48,610 5,937,830 4.0% 14.9%

 

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/best-paying-construction-jobs-2021

cement
Archives, Global Trade Daily, News

Asian Construction Boom Set to Secure Stable Cement Market Growth

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IndexBox has just published a new report: ‘World – Cement – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Consistent demand from the construction sector maneuvered the global cement market through the pandemic and promoted its further expansion. The robust growth currently being seen in the Asian residential and infrastructural sector is set to become a key market driver in the near term.

Key Trends and Insights

Despite the fact that many cement plants remained idle and inactive during the Covid lockdown, 2020 figures indicate that global cement production remained consistent with 2019 output (4.2B tonnes, IndexBox estimates). The demand for cement is buoyed by construction industry growth in the USA, India, and China and building renovation works in the EU and other countries.

Vietnam (+7.6% CARG), Indonesia (+5.6% CARG), India (+5.5% CARG) and China (+4.4% CARG) indicated the most significant rate of consumption growth from 2007 to 2020.

The announcement of large-scale construction projects in the Asia-Pacific region has secured confidence regarding a stable growth in demand for cement in the near term. In June 2020, Vietnam adopted public-private partnership legislation to attract investment into the housing construction sector. The government’s five-year development plan to 2024 in Indonesia envisages the development of megacities and the construction of a new capital in Eastern Indonesia. In 2020, India launched the state initiative The Housing for All, which outlines the construction of 11M housing units for the poor by 2022. The housing construction sector in China will expand further due to the substantial increased investment seen in 2021.

In the USA, suburban construction continues to develop; it started during the pandemic, following the shift to remote working and the drive to move away from the large cities. The subsidized mortgage rates in Russia continue to buoy the construction market. IndexBox forecasts that over the 2020-2030 period, the global cement market is set to expand at an average annual rate of 1.8% CAGR, reaching 5.0B tonnes by 2030.

In 2020, many global cement manufacturers announced the expansion of their product lines, plans to use renewable sources of energy and decarbonization initiatives. Systems to capture greenhouse emissions from cement plants are seeing widespread installation in developed countries. As the ‘green’ agenda gains momentum, reducing the carbon footprint is set to become an important issue for manufacturers in terms of maintaining their competitive edge. This issue may acquire particular relevance in the EU market, where a ‘carbon tax’ is set to be introduced.

Cement Consumption by Country

China (2,375M tonnes) remains the largest cement consuming country worldwide, comprising approx. 56% of total volume. Moreover, cement consumption in China exceeded the figures recorded by the second-largest consumer, India (339M tonnes), sevenfold. The third position in this ranking was occupied by the U.S. (104M tonnes), with a 2.5% share.

In value terms, China ($184B) led the market alone. The second position in the ranking was occupied by India ($16.5B). It was followed by the U.S.

The countries with the highest levels of cement per capita consumption in 2020 were China (1,620 kg per person), Viet Nam (911 kg per person) and the U.S. (314 kg per person).

Global Cement Imports

In 2020, approx. 96M tonnes of cement were imported worldwide; waning by -4.4% compared with 2019. In value terms, cement imports stood at $7.5B in 2020.

In 2020, the U.S. (15M tonnes), distantly followed by Hong Kong SAR (4.1M tonnes), France (3.8M tonnes), Israel (3.3M tonnes), the Netherlands (3.2M tonnes), the UK (3.1M tonnes), Sri Lanka (2.2M tonnes), Afghanistan (2.1M tonnes), Kuwait (2M tonnes), Singapore (1.8M tonnes), Poland (1.7M tonnes), Cambodia (1.7M tonnes) and Hungary (1.5M tonnes) were the major importers of cement, together making up 48% of total imports. The following importers – Hong Kong SAR (4.1M tonnes), France (3.8M tonnes), Israel (3.3M tonnes), the Netherlands (3.2M tonnes), the UK (3.1M tonnes), Sri Lanka (2.2M tonnes), Afghanistan (2.1M tonnes), Kuwait (2M tonnes), Singapore (1.8M tonnes), Poland (1.7M tonnes), Cambodia (1.7M tonnes) and Hungary (1.5M tonnes) – together made up 32% of total imports.

In value terms, the U.S. ($1.3B) constitutes the largest market for imported cement worldwide, comprising 17% of global imports. The second position in the ranking was occupied by France ($372M), with a 5% share of global imports. It was followed by the UK, with a 4% share.

Source: IndexBox AI Platform

 

workplace injuries
Archives, Global Trade Daily, Special Reports

Industries With the Highest Rates of Workplace Injuries

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One of the concepts that the COVID-19 pandemic brought to the forefront of the public imagination is the idea of an “essential worker.” The pandemic highlighted that many professions are critical for allowing the rest of the economy and society to function properly, especially in a time of crisis. Some essential professionals like health workers and teachers were already held in high regard, but COVID-19 put a new spotlight on workers in oft-overlooked industries like grocery, elder care, and shipping and logistics.

Of course, the reason why these professions have drawn attention is the fact that workers in these fields kept working despite higher risks of virus exposure in the course of doing their jobs. Early on in the pandemic, many people were easily able to transition to working remotely, while many others saw their jobs eliminated or hours reduced as a result of COVID-19’s economic shocks. But essential workers mostly continued working in-person, all the while confronting the greater possibility of contracting COVID-19.

These varying experiences of COVID-19 across professions reflect the larger fact that every job has different levels and types of risk inherent in the work. Professions that involve manual labor or interacting with tools and machinery tend to be among the most prone to injury and illness, but no job is perfectly safe. Fortunately, however, the U.S. has seen positive trends in reducing the number and severity of work-related injuries and illnesses in recent years.

According to data from the Bureau of Labor Statistics, the overall number of cases per 100 full-time workers has been cut nearly in half over the last two decades, from 5.0 in 2003 to 2.8 in 2019. And this is part of a much longer-running trend that began with the creation of the Occupational Safety and Health Administration in the early 1970s. When OSHA was created in 1971, the rate of injury and illness on the job was 11 per 100 workers, but that number has been on the decline ever since thanks to OSHA and other efforts to promote workplace safety.

Lower incidences of workplace injury and illness overall have come with a parallel reduction in the number of injuries and illnesses that inhibit the ability to work. In 2003, there were 1.5 cases per 100 workers that led to days away from work. That number dipped to 1.0 in 2011 and has remained at or below that level ever since.

Despite this progress overall, the risk profile across professions continues to vary, and the data suggest that these different risk levels are also closely correlated with income. In general, industries with lower median earnings tend to see more work-related illnesses or injuries, while industries with higher earnings tend to see fewer. This situation is likely to be exacerbated by COVID-19, as many essential professions or other jobs that have continued in-person also pay lower wages than the lower-risk white-collar jobs that were able to transition to virtual work.

To identify the industries with the highest rates of workplace injuries, researchers at Construction Coverage collected data from the Bureau of Labor Statistics, including each industry’s total number of cases per 100 workers, cases resulting in missed days or job transfer/restrictions, median wage, and total employment. Industries were ranked by the total number of cases per 100 workers.

Here are the industries with the highest rates of workplace injuries.

Industry
Rank
           Total  cases (per 100 workers)
Cases with days away from work (per 100 workers)
Cases with days of job transfer/restriction (per 100 workers)
Other cases (per 100 workers)
Median annual wage
Total employment
Couriers and messengers    1      8.1 3.3 2.8 2.1 $36,890 796,660
Air transportation    2      6.5 3.7 1.5 1.2 $62,480 498,830
Wood product manufacturing    3      6.1 1.8 1.7 2.6 $34,260 406,100
Performing arts, spectator sports, and related industries    4      6.0 1.4 1.9 2.7 $37,330 519,810
Nursing and residential care facilities    5      5.9 1.7 1.8 2.4 $30,370 3,351,090
Animal production and aquaculture    6      5.6 2.1 1.3 2.1 N/A N/A
Hospitals    7      5.5 1.3 0.9 3.3 $58,210 6,094,940
Crop production    8      5.3 1.4 1.6 2.2 N/A N/A
Support activities for agriculture and forestry    9      5.2 1.8 1.5 1.9 $26,430 382,330
Building material and garden equipment and supplies dealers    10      4.9 1.6 1.7 1.6 $29,830 1,311,670
Warehousing and storage    11      4.8 1.9 1.7 1.2 $36,170 1,214,230
General merchandise stores    12      4.6 1.2 1.6 1.8 $25,310 3,129,540
Fishing, hunting and trapping    13      4.6 2.3 N/A 1.5 N/A N/A
Primary metal manufacturing    14      4.4 1.2 1.5 1.7 $44,520 385,910
Beverage and tobacco product manufacturing    15      4.3 1.3 1.6 1.4 $38,680 282,110

 

*Incidence rates represent the number of injuries and illnesses per 100 full-time workers

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/industries-with-highest-rates-of-workplace-injuries-2021

soda ash
Archives, Global Trade Daily, Imports/Exports

Cut in Production Royalty Rate to Support American Soda Ash Producers

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IndexBox has just published a new report: ‘U.S. – Sodium Carbonate – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The fall in the production and consumption of soda ash (sodium carbonate) on the American market was precipitated by the declining demand in the consumer industries and exacerbated by the Covid crisis. The cut introduced in 2021 in terms of royalty rates for soda ash production to enable producers to reestablish competitive prices and regain their positions on the export markets. 

Key Trends and Insights

In 2020, American soda ash production fell to 9.7M tonnes, a decline of 17% against the previous year. The consumption volume also declined over the third consecutive year, standing at approx. 4.1M tonnes in 2020. This downturn is largely shaped by the drop in demand from downstream industries, particularly, glass production, hampered by the pandemic.

Exports also fell from 7.0M tonnes in 2019 to 5.7M tonnes in 2020. To struggle with this downward trend, the cut in production royalty rates in Wyoming, the base for four out of the five American soda ash production plants, from 6% to 2% was introduced in January 2021. This is to enable producers to scale down prices, thereby making the product competitive on both the domestic and export markets.

A significant increase in demand for soda ash from the glass industry, which comprises near 48% of the market, is not anticipated in the medium term. Despite construction growth in the second half of 2020, overall, the American glass output continued to decline over the second consecutive year due to competition from alternative packaging materials for canned food and drinks, and the rise in the recycling and reuse of glass products.

Almost all American soda ash is manufactured using the Trona process. This is more energy-efficient than other forms of production technologies (Solvay and Hou), reflecting the provisions of the Paris Agreement on reducing greenhouse gas emissions.

The wave of suburban construction growth started in the 2nd half of 2020, is set to continue in the immediate term, which is to promote glass production. Should the pandemic wane in 2021, market performance is forecast to expand with an anticipated CAGR of +0.4% for the period from 2019 to 2030, driven by the gradual recovery of the economy and incomes. This is projected to bring the market volume to 7.7M tonnes by the end of 2030 (IndexBox estimates).

Mexico to Remain the Major Export Destination for the American Soda Ash

In 2019, the amount of sodium carbonate exported from the U.S. stood at 7M tonnes, remaining relatively unchanged against the previous year’s figure. The total export volume increased at an average annual rate of +1.9% over the period from 2012 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations being observed throughout the analyzed period. In value terms, sodium carbonate exports amounted to $1.6B (IndexBox estimates) in 2019.

Mexico (1.3M tonnes), Indonesia (828K tonnes) and Brazil (793K tonnes) were the main destinations of sodium carbonate exports from the U.S., with a combined 42% share of total exports. Malaysia, Chile, Viet Nam, Thailand, India, Japan, Australia, South Korea, Taiwan (Chinese) and Canada lagged somewhat behind, together comprising a further 43%.

In value terms, Mexico ($307M), Indonesia ($185M) and Brazil ($165M) constituted the largest markets for sodium carbonate exported from the U.S. worldwide, with a combined 42% share of total exports. These countries were followed by Malaysia, Chile, Viet Nam, Thailand, Australia, South Korea, Japan, Taiwan (Chinese), India and Canada, which together accounted for a further 43%.

In terms of the main countries of destination, Malaysia recorded the highest rates of growth concerning the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

The average sodium carbonate export price stood at $221 per tonne in 2019, with an increase of 5.4% against the previous year. Over the last seven-year period, it increased at an average annual rate of +1.3%.

Average prices varied somewhat for the major external markets. In 2019, the countries with the highest prices were Viet Nam ($242 per tonne) and Canada ($240 per tonne), while the average prices for exports to India ($178 per tonne) and Japan ($205 per tonne) were amongst the lowest.

From 2012 to 2019, the most notable rate of growth in terms of prices was recorded for supplies to Canada, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox AI Platform

tools
Archives, Global Trade Daily, News

The Global Hand Tool Market Picks Momentum

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IndexBox has just published a new report: ‘World – Hand Tools – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

Hand tool manufacturing is gradually seeing a recovery, following the decline in 2020. The market is forecast to accelerate, due to the increased need for DIY and repair work and construction growth in terms of private homes.

Key Trends and Insights

In 2020, hand tool manufacturing worldwide experienced a significant decline, due to the Covid-19 restrictions. In 2020, most countries noted a decline in hand tool manufacture, and the global imports reduced almost by half from the 2019 level (IndexBox estimates).

The increase in the need for DIY and repair work, against the continuing remote working trend, remains a key impetus to the hand tool market recovery in 2021. The fall in real household income as a result of the pandemic is forcing people to switch from the use of paid services to completing repair work themselves; this, in turn, may enhance the demand for hand tools. In Western countries, primarily the U.S., construction growth in terms of new out-of-town housing, is an additional driving factor.

In the current climate of increased awareness regarding the issue of environmental sustainability, special recycling points for hand and garden tools are now becoming more widespread. Tools and hardware accepted at these recycling points are given to kindergartens, schools, prisons and social community groups for their ongoing use.

The U.S. Leads Hand Tools Consumption and Imports

The countries with the highest volumes of hand tools consumption in 2019 were the U.S. (568K tonnes), China (332K tonnes) and Japan (112K tonnes), with a combined 34% share of global consumption. Italy, Brazil, Germany, Russia, the UK, France, Canada, Viet Nam, South Korea and Thailand lagged somewhat behind, together accounting for a further 25% (IndexBox estimates).

From 2012 to 2019, the most notable rate of growth in terms of hand tools consumption, amongst the key consuming countries, was attained by Italy, while hand tools consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest hand tools markets worldwide were the U.S. ($5B), Japan ($2.9B) and China ($1.6B), with a combined 39% share of the global market. Italy, Canada, Germany, South Korea, France, the UK, Brazil, Russia, Viet Nam and Thailand lagged somewhat behind, together accounting for a further 29%.

The countries with the highest levels of hand tools per capita consumption in 2019 were Canada (1.81 kg per person), Italy (1.75 kg per person) and the U.S. (1.72 kg per person).

From 2012 to 2019, the biggest increases were in Italy, while hand tools per capita consumption for the other global leaders experienced more modest paces of growth.

In 2019, the U.S. (416K tonnes), distantly followed by Germany (149K tonnes) were the major importers of hand tools, together committing 23% of total imports. The following importers – the UK (85K tonnes), France (81K tonnes), Russia (81K tonnes), the Netherlands (76K tonnes), Poland (56K tonnes), Spain (52K tonnes), Belgium (51K tonnes), Canada (50K tonnes), Indonesia (49K tonnes), China (46K tonnes) and Malaysia (44K tonnes) – together made up 27% of total imports.

Imports into the U.S. increased at an average annual rate of +4.2% from 2012 to 2019. At the same time, Poland (+7.9%), Spain (+4.6%), Belgium (+4.1%), Malaysia (+3.8%), Germany (+2.6%), the Netherlands (+2.5%), Indonesia (+2.1%), China (+2.0%), the UK (+1.8%), France (+1.7%) and Russia (+1.5%) displayed positive paces of growth. Moreover, Poland emerged as the fastest-growing importer imported in the world, with a CAGR of +7.9% from 2012-2019. By contrast, Canada (-3.3%) illustrated a downward trend over the same period. While the share of the U.S. (+3 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the U.S. ($3.7B) constitutes the largest market for imported hand tools worldwide, comprising 18% of global imports. The second position in the ranking was occupied by Germany ($1.6B), with a 7.8% share of global imports. It was followed by France, with a 4.3% share.

Source: IndexBox AI Platform

mexico
Archives, Global Trade Daily, International Trade

Mexico Faces a Slow Economic Recovery After a Steep Recession

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Mexico’s economic performance deteriorated steeply in 2020 which may be largely attributed to the COVID-19 pandemic and slow government action to curb disease spread. GDP contracted 8.5%, mainly due to steep declines in consumption and investment.

Atradius economic analysts predict Mexico’s GDP will partially rebound in 2021, increasing by 6.1%. The coronavirus pandemic exacerbated an already weak economic situation. Mexico entered 2020 in a mild recession, due to fiscal tightening and falling investments on the back of rising policy uncertainty.

Government leaders face growing concern over health and economic policies

Due to the severe spread of the coronavirus pandemic and the resulting economic downturn, the handling of the crisis by the government has drawn harsh criticism. Compared to most other countries in the region, Mexico took less stringent measures on a national level to contain the spread of the disease.

Some of the poorest countries in Latin America—including El Salvador, Guatemala, Honduras and Venezuela—were among the quickest to respond, most likely in recognition of the extremely limited capacity of their healthcare systems to deal with a protracted public health crisis.

While President López Obrador’s popularity has subsequently dropped, approval rates remain high, at about 60%. This is due to some popular measures taken since his inauguration in December 2018, such as raising the minimum wage, reducing government salaries (including his own) and advancements in several high-profile corruption cases. The president’s party thus remains well-positioned for mid-term elections in June 2021. General disillusionment with traditional parties underpin this expectation.

High crime rates and endemic corruption continue to undermine the business environment and state functions in Mexico. The economic repercussions of the coronavirus pandemic particularly hit workers in the informal sector, who amount to about 60% of the total labor force. Consequently, rising poverty could become a major social and political issue if government action is not taken.

Limited fiscal measures in place to counter the downturn

Mexico’s high vulnerability to the lasting effects of the COVID-19 pandemic stems from its relatively weak healthcare system, the close synchronization of its economy with the U.S. business cycle and its relatively high dependence on the services sector. These factors make Mexico more susceptible to external shocks, especially with the stagnant tourism sector.

The 2021 outlook for most sectors in Mexico ranges from fair to bleak, with particular difficulty ahead for construction, engineering, and steel. The automobile sector, Mexico’s leading source of exports, suffered from a sharp fall in external demand and severe supply chain disruptions over the past year.

To help mitigate these impacts from the COVID-19 pandemic, the central bank cut interest rates several times in 2020, to a still relatively high 4% in February 2021, while the probability of further monetary policy easing has declined. Inflation is expected to remain at the upper end of the central bank’s 2%-4% target range, mainly due to higher fuel prices and shortages from supply-side disruptions.

A protracted recovery expected in 2021

Due to meager fiscal support and comparatively high-interest rates, Mexico’s economic recovery is expected to be protracted, and GDP will likely not return to its pre-pandemic level until 2024.

Other issues include persisting economic policy uncertainty, concerns about contract enforcement and rule of law under the current government, which may continue to have a negative impact on business confidence and private investments.

Exports in the manufacturing sector should receive a boost from higher U.S. growth prospects, while an infrastructure plan may contribute to a partial recovery of investment. However, this recovery expectation remains subject to a timely containment of the pandemic, including the speed of the vaccination campaign. The government debt ratio is expected to level off in 2022 despite weaker government finances.

The peso exchange rate against the USD sharply depreciated in March 2020, which may be largely due to high capital outflows and the deterioration of the oil price. However, it appreciated again since May, and by the end of 2020, it had almost recovered its lost ground. While the exchange rate is likely to remain volatile in 2021, it is expected to continue its appreciating trend, supported by a global recovery in manufacturing.

There are glimmers of hope for Mexico’s economic recovery in 2021, aided by accelerating growth in U.S. markets on the back of massive fiscal stimulus and vaccination rollouts globally. As long as Mexico can stay on a path toward growth, a partial economic rebound could be possible in 2021.

_______________________________________________________________________

Greetje Frankena is a deputy chief economist at Atradius based in Amsterdam.

roundwood
Archives, Global Trade Daily, News

Robust Demand for Wood Pulp and Construction Materials Buoys the Global Roundwood Market

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IndexBox has just published a new report: ‘World – Industrial Roundwood – Market Analysis, Forecast, Size, Trends and Insights. Here is a summary of the report’s key findings.

The global industrial roundwood market is estimated at a huge figure of approx. $312B, which equals to near 2B cubic meters. In 2020, despite a slowdown in the market growth due to the pandemic, the roundwood market is buoyed by robust global demand from the packaging and construction industries. The increase in online sales as a result of the pandemic has boosted the market for cardboard packaging and wooden pallets for shipping. In 2021, the decline in mortgage lending rates spurred the U.S. real estate market to record growth. Given the social isolation and working from home, the construction of new suburban single-family dwellings posts solid gains, leading to an increase in demand for lumber and wood-based panels, as well as for those used in furniture manufacturing. Similar trends are more or less relevant for many countries in the world.

Driven by increasing demand for industrial roundwood worldwide, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.5% for the period from 2019 to 2030, which is projected to bring the market volume to 2.4B cubic meters by the end of 2030.

Despite the strong performance of the downstream industries against the pandemic, the roundwood industry faced both pandemic-related and environmental challenges. In 2020, in addition to supply chain disruptions and reduced working hours for timber industry workers, wildfires have destroyed large areas of Australian and American forests. The European industry continued to suffer from beetle infestations which damage the roundwood harvests.

Increasingly, there are speculations that the rise in wildfires and beetle epidemic is caused by climate change and inappropriate forestry management in past. If the impact of climate change will be confirmed, the consequences of global warming could seriously threaten the industry with a decline in the raw material base in the long term.

Sustainability at all stages of the value chain is becoming a key long-term market trend. Agreements to reduce greenhouse gas emissions such as The European Green Deal, the Paris Climate Agreement and The United States-Mexico-Canada Agreement (concerning the environment chapter) should promote the development of a market for biodegradable and wood-based packaging. The European Council is developing a new forestry strategy with a key goal of ensuring sustainability due to effective afforestation, forest preservation and restoration in the EU.

Announced Limitations on Roundwood Exports from Russia to Shift Supply Chains on the Asian Market

A shift in the global roundwood market may appear after the announced possible ban on the export of coniferous logs and valuable hardwood logs in Russia in 2022. The Russian government is purposefully planning to reduce the export volume of unprocessed timber and export more value-added products. The consequences should affect, first of all, China, which should be able to look for new suppliers of softwood. This could lead to increased competition between Oceania, Europe and America in the global sawlog market. In the medium term, the replacement of roundwood with sawn timber from Russia may become another option for Chinese importers.

Global industrial roundwood exports amounted to 224M cubic meters in 2019. In value terms, industrial roundwood exports declined slightly to $16.2B (IndexBox estimates). New Zealand (42M cubic meters) and Russia (29M cubic meters) were the key exporters of industrial roundwood in 2019, resulting in near 19% and 13% of total exports, respectively. They were distantly followed by the Czech Republic (19M cubic meters), Germany (15M cubic meters), the U.S. (14M cubic meters) and Uruguay (12M cubic meters), together achieving a 27% share of total exports. In value terms, New Zealand ($2.2B), the U.S. ($1.7B) and Russia ($1.4B) appeared to be the countries with the highest levels of exports in 2019, with a combined 33% share of global exports.

Source: IndexBox AI Platform

startup
Archives, Global Trade Daily, Top Cities

Cities With the Most Startup Businesses

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Startups are a significant driver of the U.S. economy. Each year, thousands of entrepreneurs launch new businesses that create jobs and spur innovation and efficiency across the market. According to the U.S. Census Bureau, more than 420,000 startups accounted for 2.2 million new jobs in 2018.

Unfortunately, entrepreneurship in the U.S. has been declining for decades. In the late 1970s, the startup formation rate in the U.S.—defined as the number of new firms in a given year divided by the total number of firms—was nearly 14 percent. Four decades later, the rate was just above 8 percent

One of the major factors contributing to this trend is firm concentration. In recent decades, many sectors have shown a trend toward consolidation and greater concentration in the market, making large firms even larger and more successful through economies of scale, network effects, and other incumbent advantages.

Economic downturns also tend to slow startup formation, and the Great Recession’s effects on new business creation have proven to be especially stifling over the last decade. Unlike in past recessions, when a dip in startup activity has been followed by a period of growth, the overall startup formation rate fell in the wake of the Great Recession and has more or less remained flat at around 8 percent since. With less economic security due to a long, uncertain recovery, many potential entrepreneurs chose to minimize their risk and forgo new business opportunities. This is especially true of many would-be founders now in their late 20s and 30s, who graduated in a poor job market with large debt burdens.

This past year, the COVID-19 pandemic has brought even more economic hardship, and the unique circumstances of this downturn have created an even more complicated picture. In addition to the typical barriers to entrepreneurship that a recession creates, different industries face divergent fortunes in the era of shutdowns and social distancing. Certain sectors have become even more entrenched in daily life, creating new opportunities for growth in areas like e-commerce, video conferencing, online education, and collaboration tools. On the other hand, COVID-19 is likely to further suppress startup activity in many sectors like accommodation, food services, and retail. In recent years, these fields have experienced stagnant or declining startup formation rates. Today, the prospect of entering these industries will become even more daunting with consumer concerns about health and safety stifling demand and increasing overhead costs.

New startup formation is distributed unevenly across geographies as well as industries. Most of the states seeing the highest rates of new business creation are based in the western and southern U.S., led by Nevada (10.39 percent) and Florida (10.16 percent). Many of these states offer some combination of business-friendly policies, low individual and corporate tax rates, relatively low costs to operate, good educational institutions, and population growth that provides both a customer base and a market for labor.

Unsurprisingly, at the metro level, most of the leading hubs for startup formation are found in the states with the highest levels of startup activity. Many locations in the West and South continue to see strong rates of new business creation and associated job growth. To find out which metros are leading the way, researchers at Roofstock calculated the trailing five-year average startup formation—defined as the number of new firms in a given year divided by the total number of firms. The research team also analyzed the impact of startup activity on job growth.

Here are the large metropolitan areas with the most startup business activity.

Metro

Rank

Startup formation rate

Annual startup formations

Annual new jobs created by startups

Jobs created by startups as a percentage of all new jobs
Las Vegas-Henderson-Paradise, NV     1      11.44%     3,467     21,074 17.82%
Orlando-Kissimmee-Sanford, FL     2      10.95%     4,861     25,533 16.68%
Austin-Round Rock-Georgetown, TX     3      10.61%     3,858     21,357 16.49%
Miami-Fort Lauderdale-Pompano Beach, FL     4      10.46%     14,894     69,769 18.57%
Dallas-Fort Worth-Arlington, TX     5      9.82%     10,731     69,696 15.11%
Denver-Aurora-Lakewood, CO     6      9.64%     5,590     28,485 14.69%
Phoenix-Mesa-Chandler, AZ     7      9.63%     6,108     37,785 14.02%
Atlanta-Sandy Springs-Alpharetta, GA     8      9.52%     9,140     48,582 14.14%
Jacksonville, FL     9      9.50%     2,474     11,796 14.41%
Houston-The Woodlands-Sugar Land, TX     10      9.48%     9,214     55,475 14.44%
Los Angeles-Long Beach-Anaheim, CA     11      9.47%     24,718     144,716 18.05%
Tampa-St. Petersburg-Clearwater, FL     12      9.47%     5,174     25,792 12.31%
Riverside-San Bernardino-Ontario, CA     13      9.40%     4,867     28,137 16.10%
San Diego-Chula Vista-Carlsbad, CA     14      9.28%     5,599     27,338 15.13%
St. Louis, MO-IL     15      9.09%     4,715     19,078 12.22%
United States     –      8.13%     423,148     2,285,251 14.12%

 

For more information, a detailed methodology, and complete results, you can find the original report on Roofstock’s website: https://learn.roofstock.com/blog/cities-with-most-startups

construction
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Structural Glazing: A Key Application of Construction Sealants

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Construction sealants have soared into popularity as an indispensable chemical material for waterproofing, flooring & joining, and structural glazing. Recognition of sustainable solutions has given fresh impetus to the construction sealants market. Construction companies are adopting sealants to boost the service life of static joints and provide an effective way to add value to building sustainability without replacing all of the existing building materials.

Contractors are catering to the demands of modern construction norms, focusing on safety and durability as traction towards sealants continues to grow by leaps and bounds. Construction sealant technologies have expanded the scope of architectural designs and bolstered the life of buildings by adding durability and flexibility to joints and materials.

With reduced energy costs come enhanced return on investment and increased resale value. Global Market Insights, Inc., projects construction sealants market size to surpass US$6.5 billion by 2024, partly attributed to the penetration of acrylic and silicone sealants.

Acrylic sealants have become a top-notch solution on the heels of their UV stability feature making them apt for exterior applications. More importantly, sealants are not vulnerable to shrinkage, making the chemical material highly sought-after for jointing, caulking, embedding, and grouting in building construction.

Of late, the footprint of acrylic sealants has become palpable in low movement joints, for sealing construction frameworks, and as an adhesive for bonding. Sealants will be an invaluable product in building facades for aesthetical and perfect finishing.

The rising prominence of silicone sealants

Silicone sealants have gained ground as a durable material that can withstand decay caused by inclement weather conditions, sunlight, or moisture. Not to mention, silicone sealants tend to leverage dramatic glass facades or suspended structures.

Contractors have shown an inclination towards silicone sealants in construction, expansion, connection, and movement joints as they boost flexibility and enable materials to absorb movement and stress triggered by untoward circumstances, such as earthquakes or wind.

At a time when energy efficiency has become the “buzz word” in the construction sealants industry, contractors envisage silicone sealants as an energy-efficient material for buildings to ward off hot or cold air and humidity from coming through cracks and joints. These sealants have an exceptional performance track record in building and construction—silicone was specified for sealing bathrooms within the prestigious apartments for the Burj Khalifa.

Sealant manufacturers are likely to up their investments in silicone to boost adhesion to a range of construction surfaces, UV stability, color stability, and high movement accommodation.

Contractors count on structural glazing through construction sealants. Here’s why

Structural sealant glazing has become popular as a high-performance application to attach metal, glass, or other panel structure of a building. Since the façade is prone to thermal stresses and wind load, structural glazing is expected to maintain cohesive integrity and adhesive.

Construction contractors are likely to cash in on the demand for innovative architectural designs. Structural sealant glazing (SSG) has become ubiquitous, considering its ability to embellish the exterior aesthetics of the façade by enhancing water penetration and uncontrolled air resistance.

SSG façade has become trendier in light of the demand for sealants to provide aesthetics and protect the building from inclement weather conditions, including wind, rain, and UV. The incorporation of SSG provides contractors and architects a level of freedom to do away with the need for covers and exterior retainers.

Needless to say, structural glazing has forayed into storefronts and curtain walls, with the footprint of high-performance silicone sealants becoming more pronounced than ever before.  Silicone sealants will remain pivotal to underpin the curtain wall and seal the building from the elements.

Contractors have also exhibited traction for high-modulus silicone that needs less product to construct the insulating glass units (IGUs). To put things in perspective, a high-modulus sealant has the capability to accommodate a high-stress load with less movement or strain and is sought-after where strength is required—making them trendier in structural glazing. Besides, the optimized use of high-modulus silicone will help curb the carbon footprint of the manufactured products.

Sealant manufacturers eye North America and Europe

Traction for structural sealants for water sealing and demand for high wind-load designed for building façade will remain key in the U.S. and Canada. Given that the buildings in North America need to withstand frequent or potential hurricanes, penetration of structural sealant glazing will be noticeable in the region.

Not to mention the demand for high-temperature sealants will surge as it gives assurance to contractors that building projects will resist hostile environmental conditions and will remain durable.

Europe is likely to provide lucrative growth opportunities for sealants manufacturers on the heels of demand for weatherproofing sealants witnessing an uptick in the U.K., Italy and France. For instance, silicone sealants will set the trend as they are effective for waterproofing and is resistant to moisture, chemicals and other weather conditions.

Amidst a seismic rise in construction projects, silicone sealants will spur the trend in structural glazing and weatherproofing. Sealants will remain instrumental to provide impetus to buildings to reduce or minimize infiltration of airborne contaminants, rain and wins, while boosting sustainability.

floor covers
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Nonwoven Floor Covers Market to Witness Traction for Polypropylene Materials

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With nonwovens fabrics providing cost-effective solutions for a slew of end-use applications, nonwoven floor covers market value is slated to surge in the next five years. Nonwoven fabrics are flexible, flat, and have porous sheet structures produced by networks of fibers or interlocking layers or filaments.

Tailwinds such as flame retardancy, resilience, liquid repellency, softness, washability, bacterial barrier, strength, and sterility have augured well for forward-looking companies eyeing to expand their business portfolios. Global Market Insights, Inc., has projected nonwoven floor covers market size to witness substantial gains by 2026.

Industry dynamics and trends which are touted to boost the market outlook are delineated below:

Impact of COVID-19

With the COVID-19 pandemic having a toll on the construction industry, there are reduced opportunities for the purchase of existing housing. Demand for floor covers for kitchen, dining rooms, and commercial spaces may take a hit.

The silver lining is that people are spending more time in enclosures—homes, and offices. Textiles have become a tremendous tool to boost the personification of the living and working environment.

The post-COVID situation is likely to instill confidence among stakeholders as flooring is gradually being replaced in old buildings to create a novel appearance. Penetration of polypropylene material will potentially surge in the next five years.

Traction towards polypropylene to drive growth

Traction for non-woven polypropylene products in a slew of household applications has become more pronounced than ever before for cleaning and aesthetic applications. High-quality polypropylenes have set the trend in living rooms, kitchens and dining rooms as demand for safe, comfortable, hygienic solutions continue to surge.

More importantly, tremendous chemical resistance, low price, low heat resistance, and low physical properties of polypropylene have furthered triggered growth in the market share.

Polypropylene floor covering will witness pressing demand in light of antibacterial potential, tremendous chemical resistance to acids, high abrasion resistance, and insulation abilities. It is worth noting that hydrophobic and low thermal conductivity features make PP a highly sought-after material.

Trends in commercial settings become noticeable

The palpable trend for nonwoven floor covers in both residential and commercial settings has mustered up the confidence of stakeholders. Stakeholders are buoyed by the fact that nonwoven floor covers have good density and high tear strength, making them highly sought-after in commercial spaces.

Traction for nonwoven textiles for commercial coverings in offices will accentuate the growth of floor covers as the textiles help reduce the costs for sound and thermal insulating materials. Not to mention floor coverings are abrasion resistance, stain resistance, and have tear strength.

Impressive demand for nonwovens in commercial spaces will largely depend upon the sustainability factor of the covering. For instance, nonwoven floor covers are fueling the trend in public buildings such as hospitals, offices, and hotels. As they do not reflect light, they are being used for glare reduction in the indoor ambiance in the commercial landscape.

Growth opportunities in North America and Asia Pacificconstr

North America is likely to come up as a happy hunting ground in light of the growing footprint of polypropylene and polyamide floor covers in the U.S., Canada, and Mexico. Bullish demand for nonwoven floor covers has encouraged manufacturers to expand their penetration. Application of nonwoven floor covers made of polyamide and polypropylene may gain considerable grounds in the U.S. landscape.

With a steady rise in construction activities, demand for nonwoven floor coverings in residential and commercial spaces in India and China will fuel APAC nonwoven floor covers market outlook. Recent years have witnessed increased traction towards polypropylene floor coverings, with end-users focusing on noise level reduction.

Fluctuating prices to derail growth

Some of the factors such as fluctuating prices and sense of odors may dent the market size expansion.

Nonwovens will be highly sought-after in home furnishing, bedrooms, dining halls and living rooms, while commercial spaces will also be a major recipient of the floor coverings. With resistance to bacteria, comfortable and lightweight attributes associated with polypropylene, strong demand for PP will spur the market value.