Investing In Composite Materials

Investing in composite materials is likely a good idea, it seems that their is a daily news report about a product utilizing composites or carbon fiber. The truth is, more and more products are integrating composite materials because they are higher performing. Additionally, as the composites industry further matures, manufacturing costs should continue to decrease.

The fact of the matter is, the composite material industry is a growth sector.

Annual Global Sales of Composite Materials:

2011 - $16.1 billion
2015 estimated - $28.2 billion
2020 estimated - $48.7 billion
(Source: Materials Technology Publications)

Part of the reasoning behind the success and predicted growth of the composite material industry, is the fast integration into almost every single major industrial sector. Think about all the industries that have adopted composites:

• Aerospace
• Defense
• Space
• Mass transit
• Heavy trucking
• Sports and leisure
• Oil and gas
• Marine

All it will take is GM, Ford, or Toyota to adopt composites and suddenly automotive is on this list. So the question is, how can one take part in the potential upside of composites? Well, there are publicly traded companies which are entrenched in composites, here are a few:

• Hexcel Corporation (NYSE: HXL)
• Cytec Industries Inc. (NYSE: CYT)
• Toray Industries Inc. (TYO: 3402)
• 3M Co. (NYSE: MMM)
• Illinois Tool Works (NYSE: ITW)
• Zoltek Companies Inc. (NASDAQ: ZOLT)
• SGL Group (PINK: SGLFF)
• Nippon Carbon Co., Ltd. (TYO: 5302)

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Photo Credit: Titanium22 via Flickr (Creative Commons)

JEC Composites 2010

Today is the last day of the JEC composites show in Paris. This is probably the largest composites show in the world, and has become the annual meeting place for composite material companies from all corners of the globe.

However, this years show may be lasting a little longer; volcanic ash from Iceland is about to shut down all the airports in Paris. The ash can damage airplane engines and could even cause failure. Hopefully this will clear soon, as the global composites industry will be on hold until it does...

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End of Life Solution for Plastics and Polymers

Above is a short documentary about a trip to the great pacific garbage patch, a three part series following a voyage to a collection of plastic larger then the state of Texas. The film should create serious questions for anyone involved in the composites, plastics, or polymer industries.

If one thinks about it, we come into contact with plastics constantly on a daily basis, from our toothbrush in the morning, to the synthetic bed we sleep on at night. This dependence is only going to continue. Even our electricity will be created from FRP wind blades and our cars will be manufactured from lightweight polymer composites.

Yet, the composites industry has no end solution for our products. Currently, traditional FRP products goto landfills or incinerators at the end of life. This is unacceptable, and more importantly, unsustainable. The composite industry as a whole needs to continue the search for better materials and further develop a realistic and functional solution for end of life solutions.

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Boeing 787 Dreamliner - Composite Materials

The composite industry as a whole is interested in the success of Boeing's new 787; it is one more step towards mass acceptance of composite materials. Despite all the problems and the current 28 month delay in production, in the end, the weight savings on the 787 will help contribute to a 20% fuel efficiency.

Here is a great post by MIT's Technology Review on the problems and the future of the Dreamliner. A worthwhile quick read for anyone following the 787 saga.

Photo Credit: Dave Sizer via flicker

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Marine Industry and Composite Materials

Yesterday President Obama said it best in a speech given at a high school in New Hampshire: "You don't go buying a boat when you can barely pay your mortgage."

Once a primary use of composite materials, the marine industry has since been hit hard by the economic downturn. What the President describes, is exactly what boat builders are experiencing right now. Boats are no doubt a luxury good, and right now, people are not buying luxury goods.

With this being said, European luxury yacht builder Emocean just announced plans for a 200m super yacht as seen above. They still need someone to buy the $500-$900 million dollar yacht before they will start building. This thing is a serious haus. 100ft pool, room for two 98ft "day boats", helipad, nightclub, and casino. Yet it will still maintain 28 knots, which is pretty good for a boat that size.

Photo Credit: Emocean

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Green Composite Material Gets Funding

According to earth2tech.com, New York based company e2e materials has raised $3 million in funding. The company, a spin-out from Cornell University, "is a clean technology company in Ithaca, New York that produces petroleum-free, biodegradable composites that are stronger, lighter and cheaper than composites filling landfills today." This is according to their website.

Now the claim of cheaper and lighter may have some merit, but saying their products are stronger then "composites filling landfills today" might be a stretch. Granted, there are many composite materials this product is stronger then, but the composites people think of most often, FRP composites, fiberglass and carbon fiber in particular, it is doubtful a bio-based composite has near the structural properties.

This being said, I am all for green composite materials and bio-based composites. The composite industry and the world needs to move in this direction as a whole. There are a myriad of applications natural fiber reinforcement is ideal for, however, we are still a long ways away from natural fiber replacing fiberglass, carbon, or aramid fibers. Hopefully e2e Materials and their new funding will help lead this charge.

Photo Source: e2e Materials

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Composite Material Industry Has a Voice in Congress

Every major material industry has representation in congress (aluminum, wood, steel, etc). Thanks to the American Composites Manufacturers Association (ACMA), the composite material industry now has a voice as well.

The ACMA has put together a 25-member Congressional Composites Caucus co-chaired by U.S. Rep. Joe Wilson (pictured above, and most famous for yelling "you lie"), a South Carolina Republican. The caucus held its first meeting in July.

The following is a list of current members of the Composite Caucus:

Joe Wilson (R-SC) – Caucus Chair
Rick Boucher (D-VA) Caucus Co-chair
Michael Arcuri – (D – NY)
Steve Austria (R-OH)
Tammy Baldwin (D-WI)
Gresham Barrett (R-SC)
Brian Bilbray (R-CA)
Earl Blumenauer (D-OR)
Vern Buchanan (R-FL)
Chris Carney (D-PA)
Howard Coble (R-NC)
Vern Ehlers (R-MI)
Jeff Fortenberry (R-NE)
Virginia Foxx (R-NC)
Doug Lamborn (R-CO)
Patrick McHenry (R-NC)
Buck McKeon (R-CA)
Cathy McMorris Rodgers (R-WA)
Michael H. Michaud (D-ME)
Bill Shuster (R-PA)
Mark Souder (R-IN)
Mike Thompson (D-CA)
Henry Waxman (D-CA)

Not listed is my local congressman, who I have already contacted and encouraged to join. (I suggest everyone reading this involved with composites do the same.)

Here is an interesting recent interview with Monty Felix, the current president of the ACMA. In the article, it states that the composites industry is a $42 billion industry with 3,000 makers of composites that employ more than 250,000.

In this letter attempting to rally support from other congressmen (which you can send to your congressman), dated June 22nd, 2009, and signed by Joe Wilson and Rick Boucher, it states the composites industry is a $70 billion dollar industry employing 550,000 nation wide.

So by calculations, either the congressmen puffed up their numbers or the composites industry has lost $28 billion in revenues and 300,000 employees since the end of June.

Photo Credit: www.joewilson.house.gov

Another Composite Material Reseach Center Gains Funding

Here is an announcement that Southern University in Louisiana has received a $5 million dollar grant from the National Science Foundation (NSF) to create the “Next Generation Composites Crest Center,” or NextGenC3 for short. The Advocate reports:

"The center will focus on the development of cutting edge research on composite materials and educational activities that will provide traditionally underrepresented minority students in the science, technology, engineering and mathematics disciplines with research experiences at a readily accessible advanced research facility."

I think this is fantastic, more exposure young engineers and designers can receive with composite materials will ultimately fuel the long-term prosperity and growth of the composite industry as a whole...

Photo Credit: Eric Charlton via flicker

Keep an eye on Schweiter Technologies

As you have probably heard by now, Rio Tinto has sold off Alcan Composites for $349 million to Swiss textile and coating machinery manufacturer Schweiter Technologies.

It looks as if Schweiter received a pretty good deal as Alcan Composites had 2008 sales of $859 million.

As the largest supplier of balsa and other core products, it will be interesting to see what Schweiter's plans will be...

More Info:
Rio Tinto Announcement
Schweiter Announcement

Photo Credit: jfrancis via flicker

Plastic's and the Auto Market

Composites and plastics play a large role in each automobile. In fact, the American Chemistry Council (ACC) estimates that each automobile contains $2,200 dollars worth of chemistry. (ie composite resins, plastics, adhesives, rubber hoses, coatings, etc.) With the "Big 3" reporting 2008 demand dropped by 3 million vehicles, my calculations say that $6.6 BILLION less dollars of chemical based auto components were used in '08... Thats nothing to shake a stick at.

But, with darkness comes the hope of light. The demand for fuel efficiency only increasing, there is hope that more and more composite materials, plastics, and other lightweight chemical based products will replace steel and metal components in the future. And then there is hope, that the economny will turn around.

More info: Article by ICIS.com

Photo Credit: dougww via Flicker

Pultrusion Industry Slightly Down in Europe

According to European pultruder Exel Composites quarterly reports, net sales were down 11.4% for the 1st quarter of 2009.

With operations in Finland, Austria, Germany, UK, China, and Australia, Exel Composites is a good bellwether company for pultrusion industry health in the European markets. Company president said,

“During the first quarter 2009, the impact of the financial crisis has continued to escalate, affecting also market demand in the pultrusion business negatively, especially in the building and construction and transportation segments,”

More Info:
Exel Composites
Pultrusion Information