In preparing 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. For industrial gas (IG) company information, including performance and market projections, we solicited input from the companies and industry analysts, and utilized company published reports.
As we discussed last year, the economic recession drove demand for industrial gases down during 2008 and 2009. Our assessment of industrial gas demand in the US for 2010 and early 2011, however is brighter. We see growth returning, but not to pre-recession levels. Company financials and input from industrial gas players confirm this trend.
US industrial gas revenues grew seven percent from 2009 to 2010, driven largely by cost control and productivity efforts by the players in a struggling economic environment. As we know, the 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. Many expect this to continue through the remainder of 2011 and into 2012. Growth in these important segments to industrial gas players is expected to be steady but slower than in 2010, as the high rate of growth experienced from 3Q 2009 through the first half of 2010 has downshifted into an idling mode.
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