Paving the Way for Asphalt Demand

Demand for asphalt products is forecast to increase 1.2 percent per year to 38.8 million tons in 2009, according to a study from the Cleveland-based market research firm the Freedonia Group.

Demand for paving product is expected to increase 1.3 percent annually through 2009, according to the study. Paving products accounted for more than 85 percent of overall asphalt products volume demand in 2004.

Gains for paving products will be driven by increased federal and state spending on highway and road construction, particularly in view of the passage of the Safe, Accountable, Flexible and Efficient Transportation Equity Act—a Legacy for Users (SAFETEA-LU), federal legislation that authorizes spending through 2009.

According to the Freedonia study, consumption of asphalt roofing products is projected to expand less than 1 percent per year through 2009. The Freedonia Group predicts that market gains will derive primarily from renewed growth in nonresidential building. The construction of office, commercial and industrial buildings dwindled during the 1999-2004 period, negatively affecting demand for roofing products. As nonresidential building posts resurgent growth, consumption of built-up, modified bitumen and roll roofing will benefit, according to the study.

The full study, “Asphalt,” is available for purchase through the Freedonia Group online at www.freedoniagroup.com.