Effects of the 2009 Economic Stimulus Package upon Composites and Related Markets
The United States has entered a period of unprecedented decline in housing, available credit, employment, commodities and the stock market. This “perfect storm” of negative data compelled congress to act on behalf of the American people. The total stimulus bill – Specifically labeled the ‘American Recovery and Relief Act’ – passed by the Obama administration on February 17th was $787B, the largest single stimulus act in the nation’s 230 plus year history.
The American Relief and Recovery Act (ARRA) is split into two principal sections, tax relief and spending, both with the intent to infuse billions of dollars into the U.S. economy. The largest block of the stimulus is direct government spending accounting for $499 billion (63%). It is split amongst seven segments of the economy: education and training, infrastructure and housing, health care, energy, aid to low income/unemployed, scientific research, and other. Tax relief totals $288 billion (37%) of the stimulus with $237 billion to individuals and $51 billion for tax credits or subsidies of some form.
The intention of this report is to focus upon those segments and sub segments of spending in the ARRA with the potential to positively affect the sales of composite products. For this report, composite products are defined as those which have thermoset or thermoplastic matrices with reinforcements such as glass and carbon fiber.
In exploring the impact of ARRA on composite spending, segments are broken into three principle categories: renewable energy (wind), construction and transportation. Other segments such as aerospace, electronics or marine are not included as there is limited direct funding into these sectors, despite the fact they could witness positive impacts from an overall economic recovery.
Based on Lucintel Analysis, about 10-15% of the $787 billion in stimulus spending is likely to affect composites related end markets such as construction, wind and mass transportation. As a result of above investment, Lucintel estimates that a total of more than a billion dollars worth of composite products business would be generated.
To make any investment, business or strategic decisions, you need timely and adequate information. This market report fulfills this core need as an indispensable reference guide for composite material suppliers, product manufacturers, investors, researchers, engineers, distributors and many more, who are dealing with the impacted industries.
Some of the features of this market report are:
The American Relief and Recovery Act (ARRA) is split into two principal sections, tax relief and spending, both with the intent to infuse billions of dollars into the U.S. economy. The largest block of the stimulus is direct government spending accounting for $499 billion (63%). It is split amongst seven segments of the economy: education and training, infrastructure and housing, health care, energy, aid to low income/unemployed, scientific research, and other. Tax relief totals $288 billion (37%) of the stimulus with $237 billion to individuals and $51 billion for tax credits or subsidies of some form.
The intention of this report is to focus upon those segments and sub segments of spending in the ARRA with the potential to positively affect the sales of composite products. For this report, composite products are defined as those which have thermoset or thermoplastic matrices with reinforcements such as glass and carbon fiber.
In exploring the impact of ARRA on composite spending, segments are broken into three principle categories: renewable energy (wind), construction and transportation. Other segments such as aerospace, electronics or marine are not included as there is limited direct funding into these sectors, despite the fact they could witness positive impacts from an overall economic recovery.
Based on Lucintel Analysis, about 10-15% of the $787 billion in stimulus spending is likely to affect composites related end markets such as construction, wind and mass transportation. As a result of above investment, Lucintel estimates that a total of more than a billion dollars worth of composite products business would be generated.
To make any investment, business or strategic decisions, you need timely and adequate information. This market report fulfills this core need as an indispensable reference guide for composite material suppliers, product manufacturers, investors, researchers, engineers, distributors and many more, who are dealing with the impacted industries.
Some of the features of this market report are:
- Economic characteristics of stimulus bill
- Infrastructure Core Investment: Roads/Bridges, Housing and Transportation
- Effect of U.S. Stimulus Package on composites market
- Effect on U.S. Wind Energy Market and forecasts for composites in U.S. Wind Energy
- Effect of U.S. Stimulus Package on Infrastructure Market
- ARRA investment in various segments of the housing market and potential applications
- Effect of U.S. Stimulus Package on composites infrastructure market
- Effect of U.S. Stimulus Package on composites transportation market
- Key Findings and Observations from Interviews with key executives of the leading FRP manufacturers
- Opportunities and Strategic Insights for OEMs and Part Fabricators / Molders
- Opportunities and Strategic Insights for Material Suppliers
- A total of 38 figures/charts and 3 tables presented in this report to help in your business plan.
EXECUTIVE SUMMARY
AMERICAN RECOVERY AND RE-INVESTMENT ACT OF 2009
Need for U.S. Stimulus Package
Economic characteristics of stimulus bill
Composites market effect
STIMULUS IMPACT ON WIND ENERGY MARKET
U.S. Wind Energy Market
Composite Forecasts and Observations for U.S. Wind Energy
Leading Wind Energy Companies in North America
STIMULUS IMPACT ON CONSTRUCTION AND TRANSPORTATION MARKET
Infrastructure Market Overview
Infrastructure Core Investment: Roads/Bridges, Housing and Transportation
Composites in Construction / Housing
Composites in Infrastructure
Composites in Transportation
Key Findings and Observations from Interview
Leading composite manufacturers in Construction
STRATEGIC ANALYSIS
Opportunities and Strategic Insights for OEMs and Part Fabricators / Molders
Opportunities and Strategic Insights for Material Suppliers
AMERICAN RECOVERY AND RE-INVESTMENT ACT OF 2009
Need for U.S. Stimulus Package
Economic characteristics of stimulus bill
Composites market effect
STIMULUS IMPACT ON WIND ENERGY MARKET
U.S. Wind Energy Market
Composite Forecasts and Observations for U.S. Wind Energy
Leading Wind Energy Companies in North America
STIMULUS IMPACT ON CONSTRUCTION AND TRANSPORTATION MARKET
Infrastructure Market Overview
Infrastructure Core Investment: Roads/Bridges, Housing and Transportation
Composites in Construction / Housing
Composites in Infrastructure
Composites in Transportation
Key Findings and Observations from Interview
Leading composite manufacturers in Construction
STRATEGIC ANALYSIS
Opportunities and Strategic Insights for OEMs and Part Fabricators / Molders
Opportunities and Strategic Insights for Material Suppliers
LIST OF FIGURES
(A total of 38 figures/charts are presented in this report as shown below.)
EXECUTIVE SUMMARY
Fig. 1.1: Composition of ARRA funds by category
Fig. 1.2: Market attractiveness for ARRA stimulus funds ($B)
Fig. 1.3: Composite opportunities from ARRA spending by segment
Fig. 1.4: Market opportunities for composites from stimulus spending ($M)
Fig. 1.5: Market opportunities for composites from stimulus spending ($M)
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
Fig. 2.1: Average monthly unemployment trend in the U.S.
Fig. 2.2: U.S. Construction as a percentage of GDP 2004 – 2008
Fig. 2.3: Annualized sales of new and existing homes (2005 – 2009 est.)
Fig. 2.4: Annualized sales of new and existing homes by month
Fig. 2.5 Annualized U.S. home price index trend
Fig. 2.6: Timeline of passage and implementation of the ARRA
Fig. 2.7: Breakdown of the 2009 stimulus package: Tax Relief and Spending; $787 B total
Fig. 2.8: Breakdown of spending in the 2009 stimulus package
Fig. 2.9: Breakdown of tax relief in the 2009 stimulus package
Fig. 2.10: Breakdown of Energy spending in the 2009 stimulus package
Fig. 2.11: Breakdown of Infrastructure/Housing spending in the 2009 stimulus package
Fig. 2.12: Breakdown of core investment spending in the 2009 stimulus package
WIND ENERGY MARKET
Fig. 3.1; ARRA stimulus of manufacturing/infrastructure spending segments in wind
Fig. 3.2: ARRA Tax credits available to wind farm operators: PTC, ITC
Fig. 3.3: Trend in wind power new capacity addition (1999 – 2008)
Fig. 3.4: Cumulative MW installation in U.S. Wind Energy (2003 – 2014)
Fig. 3.5: New MW capacity in U.S. Wind Energy 2003 – 2014
Fig. 3.6: Forecasted composite consumption in the U.S. wind market 2009 – 2014 (M lbs)
Fig. 3.7: Leading U.S. wind energy companies: blade manufacturers, installers and operators
INFRASTRUCTURE MARKET
Fig. 4.1: Breakdown of Infrastructure/Housing spending in the 2009 stimulus package
Fig. 4.2: ARRA stimulus by segment for the infrastructure/housing segment with composites potential
Fig. 4.3: Breakdown of core investment spending in the 2009 stimulus package
Fig. 4.4: U.S. bridges by custodianship
Fig. 4.5: Total U.S. bridges by deficiency classification.
Fig. 4.6: Distribution of ARRA Highway funds by area population (‘$000s).
Fig. 4.7: Breakdown of top states receiving stimulus for bridge/road construction/maintenance
Fig. 4.8: Breakdown of top cities receiving stimulus for bridge/road construction/maintenance
Fig. 4.9: Timelines for usage of stimulus dollars for roads/bridges in infrastructure
Fig. 4.10: ARRA program funding by state projects: New or Resurface/Refurbishment
Fig. 4.11: Breakdown of housing spending in the 2009 stimulus package
Fig. 4.12: Leading U.S. composite manufacturers in infrastructure: FRP Doors, windows, rebar, and bridge deck strategic analysis
Fig 5.1: New opportunities for material suppliers in wind blade markets
Fig 5.2: New opportunities for material suppliers in wind blade markets
(A total of 38 figures/charts are presented in this report as shown below.)
EXECUTIVE SUMMARY
Fig. 1.1: Composition of ARRA funds by category
Fig. 1.2: Market attractiveness for ARRA stimulus funds ($B)
Fig. 1.3: Composite opportunities from ARRA spending by segment
Fig. 1.4: Market opportunities for composites from stimulus spending ($M)
Fig. 1.5: Market opportunities for composites from stimulus spending ($M)
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
Fig. 2.1: Average monthly unemployment trend in the U.S.
Fig. 2.2: U.S. Construction as a percentage of GDP 2004 – 2008
Fig. 2.3: Annualized sales of new and existing homes (2005 – 2009 est.)
Fig. 2.4: Annualized sales of new and existing homes by month
Fig. 2.5 Annualized U.S. home price index trend
Fig. 2.6: Timeline of passage and implementation of the ARRA
Fig. 2.7: Breakdown of the 2009 stimulus package: Tax Relief and Spending; $787 B total
Fig. 2.8: Breakdown of spending in the 2009 stimulus package
Fig. 2.9: Breakdown of tax relief in the 2009 stimulus package
Fig. 2.10: Breakdown of Energy spending in the 2009 stimulus package
Fig. 2.11: Breakdown of Infrastructure/Housing spending in the 2009 stimulus package
Fig. 2.12: Breakdown of core investment spending in the 2009 stimulus package
WIND ENERGY MARKET
Fig. 3.1; ARRA stimulus of manufacturing/infrastructure spending segments in wind
Fig. 3.2: ARRA Tax credits available to wind farm operators: PTC, ITC
Fig. 3.3: Trend in wind power new capacity addition (1999 – 2008)
Fig. 3.4: Cumulative MW installation in U.S. Wind Energy (2003 – 2014)
Fig. 3.5: New MW capacity in U.S. Wind Energy 2003 – 2014
Fig. 3.6: Forecasted composite consumption in the U.S. wind market 2009 – 2014 (M lbs)
Fig. 3.7: Leading U.S. wind energy companies: blade manufacturers, installers and operators
INFRASTRUCTURE MARKET
Fig. 4.1: Breakdown of Infrastructure/Housing spending in the 2009 stimulus package
Fig. 4.2: ARRA stimulus by segment for the infrastructure/housing segment with composites potential
Fig. 4.3: Breakdown of core investment spending in the 2009 stimulus package
Fig. 4.4: U.S. bridges by custodianship
Fig. 4.5: Total U.S. bridges by deficiency classification.
Fig. 4.6: Distribution of ARRA Highway funds by area population (‘$000s).
Fig. 4.7: Breakdown of top states receiving stimulus for bridge/road construction/maintenance
Fig. 4.8: Breakdown of top cities receiving stimulus for bridge/road construction/maintenance
Fig. 4.9: Timelines for usage of stimulus dollars for roads/bridges in infrastructure
Fig. 4.10: ARRA program funding by state projects: New or Resurface/Refurbishment
Fig. 4.11: Breakdown of housing spending in the 2009 stimulus package
Fig. 4.12: Leading U.S. composite manufacturers in infrastructure: FRP Doors, windows, rebar, and bridge deck strategic analysis
Fig 5.1: New opportunities for material suppliers in wind blade markets
Fig 5.2: New opportunities for material suppliers in wind blade markets
LIST OF TABLES
Table 3.1: ARRA stimulus into composite applications in wind by segment
Table 4.1: ARRA stimulus for composite applications in infrastructure by segment
Table 4.2: ARRA stimulus for composite applications in housing by segment
Table 3.1: ARRA stimulus into composite applications in wind by segment
Table 4.1: ARRA stimulus for composite applications in infrastructure by segment
Table 4.2: ARRA stimulus for composite applications in housing by segment
