CryoGas International’s assessment of industrial gas demand in the US for the remainder of 2012 and into 2013 is slow but steady. Input from industrial gas leaders and company financials confirm that the industrial gas industry is growing despite uncertain economic times by actively pursuing growth markets, improving productivity, and taking advantage of lower natural gas/energy prices.
While demand for industrial gases is returning, volumes overall have not returned to prerecession levels. Recent economic forecasts indicate that the gases market will grow at a somewhat slower rate in 2012 than 2011, primarily because US manufacturing conditions show signs of softening—but growth is where we are headed.
To prepare for this year’s US Industrial Gas Market Report, CryoGas International analyzed economic and market information from respected groups such as the US Bureau of the Census, US Bureau of Economic Analysis (BEA), and the US Federal Reserve Board. The information gathered ranges from quantitative data such as Industrial Production statistics to qualitative anecdotal information such as the Federal Reserve’s Beige Book, which is published eight times a year. For industrial gas (IG) company information, including performance and market projections, CryoGas solicits input from the major gas producers and industry analysts, and utilizes company published reports.
As noted last year (see “US Industrial Gas Report,” CryoGas, August/September 2012, p. 36) industrial gas demand in the US for 2010 and early 2011 showed improvement over the downturn of 2008 and early 2009. US industrial gas revenues grew seven percent from 2009 to 2010, driven largely by cost control and productivity efforts by the players in the struggling economic environment. As we know, the economic recovery has been slow, but fortunately for our industry much of the recovery’s strength has been in US manufacturing sectors that use industrial gases, particularly in metal working and fabrication, steel, chemicals, electronics, and refining.
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