Good news from North America
Economic trends and Mapei growth in North America.
The GDP, an indicator of the size of a country’s economy, is growing in North America. Projections by the Federal Reserve Board and Federal Reserve Bank presidents in March 2017 indicate that the U.S. GDP is growing at a rate of 2.1% and will continue to do so throughout 2017 and into 2018.1
The Canadian GDP is expected to grow by 1.9% during this same period.2
The construction industry in the U.S. is also showing solid growth, with an overall forecasted increase of 6.5% for 2017 vs. 2016. The Non-Residential Construction Forecast by the Associated Builders and Contractors (ABC) calls for a 5.3% increase in total non-residential construction in 2017, while the residential market shows a 6.4% rise in new home construction spending and a 9.6% increase in home improvement spending.
Construction prospects in Canada have risen, too. Total construction spending for all sectors is forecast to increase by 2.4% in 2017. New residential construction is expected to grow 2.2% Canada-wide, while non-residential construction (commercial, industrial and institutional) may increase by as much as 4.5%.
MAPEI IS GROWING FASTER THAN THE ECONOMY
Mapei North America’s growth rate for the first quarter of 2017 is 14% above the same period in 2016. “This is resoundingly positive news due to the fact that 2016 itself was a banner year for revenues in this subsidiary,” said Luigi Di Geso, President and CEO of Mapei North America.
“I feel strongly that the efforts we have made over the past several years to add new sales representatives, new technical representatives and new architectural representatives have enabled us to reach and service our customers better than we ever had in the past. And, our innovative products continue to meet the highest technological standards as we seek to provide solutions for our customers’ needs today and in the future.”
From this leadership stance, Mapei has moved steadily forward, introducing new categories of products from Mapei Group into the North American market, as well as expanding current operations and acquiring additional manufacturing capacity.
The acquisition of GRT (General Resource Technology) in 2014 (see Realtà Mapei International no. 48 and no. 58) helped anchor Mapei in North America as a provider of concrete admixtures. “GRT has helped increase revenues with its own products as well as those from Mapei. Another strong benefit has been that GRT has also elevated Mapei to a new level of visibility as a player in the construction business in the U.S. and Canada,” Di Geso said.
Below-grade waterproofing systems were introduced into American markets in 2016 and are now producing results. The products in this category are manufactured from raw materials supplied in part by sister company Polyglass USA.
Mapei North America is going deeper into construction with the Underground Technology Team (UTT) and its products for underground construction work. Building on Mapei’s global achievements with this technology, the UTT team is already experiencing successes in this sector, which encompasses tunnels, mines and other underground construction.
Mapei is also adding products to its portfolio that have been certified for the marine industry. The portfolio includes products for surface preparation, waterproofing, flooring installation, sound reduction and resin deck coatings.
A complete line of Mapefloor CPU is being introduced into North America, this year. This family of polyurethane-cement mortars has been designed to provide high resistance to chemicals, making the products ideal for use in industrial applications in the food and beverage industry.
“Mapei North America has recently ramped up operations in its manufacturing facilities to support the increased production fueled by the escalation in sales,” Di Geso stated. Additions include new powder plants in Dalton, Georgia (March 2017), and Logan Township, New Jersey (April 2017).
An extensive enlargement of the plant in Chicago will be completed by the fourth quarter of this year (October 2017). Expansions are underway to double production capacity with new production lines in Fredericksburg, Virginia (September 2017), and San Bernardino, California (June 2018).
“As operations expand in the Americas, so does the need for talented, experienced personnel. Since January 1, 70 new employees have joined Mapei North America,” commented Di Geso.
Reiterating the important role played by the sales, technical and architectural representatives, Di Geso concluded, “All the new products and technologies for Mapei North America are carried to our customers by our well-trained and dedicated sales teams. All the sales representatives came together at the beginning of 2017 in an intensely focused Mapei North America sales meeting. During the training, motivational speeches and networking between representatives from different regions, the entire sales force re-committed to the goal of generating $1 billion in annual revenues for Mapei by the end of 2020.”
The products, processes and people of Mapei North America are going strong as we celebrate the 80th anniversary of Mapei. As Mapei Group CEO Dr. Giorgio Squinzi, an avid cycling enthusiast, says, “We keep on pedaling!”
1 U.S. Economic Indicators - Source: https://www. federalreserve.gov/monetarypolicy/files/fomcprojtabl20170315.pdf; 3/16/17
2 Economic Outlook – National Bank of Canada Economics and Strategy Group, 12/31/16
