Moreover, with foam prices continually fluctuating and rising, many Tier 1 participants are actively considering the use of alternatives. Nonwovens, being extremely cost competitive besides offering various other benefits, are thus favored. The impact of this driver is likely to increase in the mid and long term when raw material prices and recyclable potential will be of paramount importance.
Despite such positive trends, increasing raw material prices along with OEM price pressures are likely to pose notable challenges to participants in the North American acoustic nonwovens market. With the crude oil prices soaring and OEMs applying additional pressure to reduce costs, acoustic nonwoven manufacturers are facing a severe profitability squeeze.
More information: www.frost.com.