EPDM Automotive applications are the fastest-growing among other popular segments such as building & construction, wire & cables, lubricant additive, and plastic modification. EPDM (a synthetic rubber) is most commonly utilized in vehicle weather stripping, seals, sealant, wire and cable harnesses, and brake systems. This is thanks to its flexibility, resiliency, and weatherability.
The Decline in Demand for EPDM Automotive Applications
The automotive industry has long been EPDM’s most popular application segment, but the market in 2020 declined by 12.9%, in terms of volume, compared to 2019 due to the pandemic. The automotive industry is a significant consumer of EPDM, so the decline of auto production and auto sales caused a major decrease in demand for EPDM automotive applications overall. However, it is expected that EPDM will be in high demand during the post-COVID19 recovery.
Reshoring EPDM within the United States
Not only will the global demand increase during the growth recovery period, but demand specifically for American Made EPDM is expected to increase exponentially. According to a recent report from Thomasnet (North America’s number one industrial sourcing platform), 83% of North American manufacturers are likely or extremely likely to reshore production (which is an increase from the 54% of respondents who said they planned to reshore back in March of 2020). In particular, the automotive and oil & gas sectors were the most motivated verticals with plans to add North American suppliers to their supply chains.
This will lead to a massive amount of economic opportunity in the U.S., with potential to drive $443 billion in economic value over the next 12 months.
American Made EPDM
Since the rise of reshoring has occurred within North America, many manufacturers in the automotive industry are looking to source EPDM rubber domestically. As a custom rubber manufacturer in the U.S. since 1923, Alliance Rubber Company is equipped to produce custom compounds of EPDM for automotive applications as well as other EPDM compounds designed for your needs and specifications. Want to learn more? Fill out our contact form!