ForConstructionPros.com

For some sealcoating contractors, 2004 was a year of frustration marked by unexpected difficulty in obtaining sealer and even mid-season price increases. But despite the fact that many of the factors contributing to 2004 frustrations will still exist, the sealcoating industry expects a more stable industry this year.

"I do think 2005 will be a better year than 2004," says Drew Bachman, sales manager, North American Operations for Koppers Inc., a supplier of RT-12 to the sealer industry. "Now, to what degree is hard to say because there are so many factors involved."

In fact, it was likely a convergence of factors in 2004 that lead to a "perfect storm" in the sealcoating industry resulting in delivery delays, price increases, and even some temporary shortages. Yet some contractors didn't even know it was raining.

What sealcoating contractors experienced depended on their region, the amount of sealer they contracted for, their relationship with their sealer supplier, and their supplier's relationship with its RT-12 supplier, among other things. In short, the sealcoating industry experienced a few months of instability unlike anything it had seen since the 1980s.

The closing of two crude coal tar distillation facilities, mechanical problems at some production facilities, logistical problems transporting product, fuel and energy surcharges, a fast-growing economy, and even reduced aluminum imports all contributed to the shake up.