Adhesion Matters - Adhesives & Sealant Industry

Episode Date: August 4, 2025

As outlined in recent issues of the Adhesives & Sealants Industry magazine, the industry is undergoing a significant transformation, characterized by a pervasive drive towards sustainability and ESG (Environmental, Social, and Governance) integration, intense innovation and investment in automotive electrification (EV) adhesives, and a dynamic landscape shaped by strategic mergers, acquisitions, and partnerships. Leading adhesive manufacturers are restructuring to focus on high-growth segments, while others are innovating in application technologies and emphasizing sustainability. Intellectual property protection is becoming crucial for competitive differentiation. The industry's responsiveness to megatrends like electrification and environmental responsibility will define its future growth and competitive landscape, as explained in today's podcast.

Okay, let's unpack this. When you hear adhesive, what comes to mine? Probably like super glue, right? Or tape. Well, today we're going to kind of flip that idea. We're doing a deep dive into the adhesives and sealance industry. And honestly, it's surprisingly dynamic. We've been digging through a bunch of stuff from Adhesives and Seelance Industry

magazine, articles and reports from, let's see, August 2023, right up to August 2025. Our goal, cut through the jargon, find the key takeaways, you know, see what's driving this pretty vital industry. And why should you care? Well, it turns out these materials are behind some huge global shifts, stuff you wouldn't expect. What's fascinating here is just how critical this industry is, even though it's often, well, overlooked. The sources really highlight this feeling of uncertainty globally over the last couple of years and this sector. It's not just reacting. It's getting really strategic, really innovative. It's moved way beyond just sticking things together. It's more about engineering solutions. Real complex, modern problems.

Right. And speaking of modern solutions, sustainability seems huge now. ESG, environmental, social governance, you see it everywhere in these reports. It's not just lip service anymore, is it? It feels fundamental. So how sticky are these green efforts, really? Are they making a difference? Oh, they're incredibly sticky. It's basically table stakes now for growth, for survival even. Look at MedMix. They've got new products like their ECOPCC cartridge system designed to save CO2. Then in June 2025, they partnered with Garrett on something called Bond Pro, described specifically as a sustainable bonding solution. Okay, so new products, new partnerships.

Yeah, and materials, too. They're using 100% post-consumer recycled polypropylene that's in their mixed pack F system, for example. And it's getting noticed. They got an A score from CDP on climate change in June 25. That's a big deal. Plus, they won a big sustainability award back in August 2024. That does sound like a serious commitment for MedMix. Is everyone moving that fast, though?

or are some still, you know, figuring it out? Well, MedMix is definitely pushing hard, but the trend is broad. Look at Dow. They're getting good feedback from investors on their ESG progress. They've got clear goals for net zero by 2050, which tells you this isn't just about looking good. It directly impacts investment, their financial health. Right, the money talks. Exactly.

And DuPont, too. They won a Silver Edison Award for Sustainability. It was for their Beta Force, 2,800 TC adhesives. These are thermally conductive structural adhesives, so they're strong, but they also manage heat, which is crucial for things like EVs and electronics. These words aren't just pats on the back. They signal real innovation. Okay, so the takeaway isn't just green as good for marketing. It's deeper. It's tied to investment, talent, maybe even avoiding regulations down the line. Integrate sustainability or risk getting left behind.

Now, here's where it gets really interesting for me, EVs, electric vehicles. You think about EV challenges, batteries, range, heat, and maybe adhesives aren't the first thing you think of. But actually, they seem absolutely critical to making EVs work better. They really are. And DuPont, again, they've made this a massive strategic focus. Big investments. They're building a whole new adhesives plant in China, specifically for transportation, focusing on EVs and light weighting. Light weighting, making things lighter for better range.

Precisely. And to speed things up, test things out, they've partnered with the Nissan Formula E team, using racing as a kind of extreme test lab. And remember those award-winning adhesives, the structural ones, the thermoconductive ones, they're winning R&D 100 awards, Edison Awards. It shows the level of tech involved.

So why adhesives? What makes them better than, say, welding or bolts in an EV? Well, several things. Adhesives spread the load, the stress over a bigger area. That makes the structure stronger, safer. Think about battery packs. You've got thousands of cells needing to be held together

and you need to manage the heat they generate. That's where those thermally conductive ones are essential. They pull heat away. And yeah, light weighting. Less weight means more range, better performance. Adhesives are way lighter than metal fasteners. So yeah, the industry isn't just benefiting from the EV boom. It's actually enabling it in many ways.

That's a great example. A traditional industry pivoting to power, a huge global shift. Very smart. But it's not just what they're making, is it? It's also how they're growing. We're seeing lots of strategic moves, deals being made. Exactly. Lots of targeted acquisitions. Buying companies to gain specific skills or enter new markets.

Like Bodo-Muller-Kemey, buying Aqua Engineering Services in July 2025. That was specifically about expanding in India. And Henkel bought Nordbeck, also in July 25. They do MRO maintenance, repair, operation stuff based in South Africa. That buy strengthens Hankles' MRO business and gives them a bigger footprint there. Okay, so buying growth. What about working together? Partnerships. Just as important.

MedMix, again, they have. signed a distribution deal with Intertronics in September 24, gets their products to more customers. And remember that Bond Pro thing with Gerrit? That was co-development, creating something new together. DuPont renewed a partnership with Silicon Catalyst in March 24. That suggests they're engaging with the wider tech ecosystem, especially around electronics, which brings us to something else interesting, protecting these innovations, intellectual property. MedMix actually sued Shanghai NSJ in May 24 over patent infringement. It's about their quality. So this raises a question.

Why is IP such a big deal here? Hmm, good question. I guess if you develop a unique formula, something that works way better for a specific application, like an EV battery, that's your edge, right? You need to protect it. That's exactly it. The value is immense.

These aren't just generic glues. They're highly engineered chemical solutions. The specific formulation, how it's applied, its performance characteristics, that is their competitive advantage. They guard it closely. Right. So it's a really dynamic picture. companies aren't just inventing in labs. They're buying, partnering, suing, actively shaping

the market to get ahead and stay ahead. Very competitive. Okay, so we've hit sustainability EVs, strategic moves, but the sources mentioned other things too, right? Smaller innovations, other company updates. Oh, absolutely. The industry's buzzing beyond those big themes. H.B. Fuller's R&D. Head, Shin Yu-D. Talked about their strategy focusing on sustainability, yes, but also automation and working closely with customers. Then you have TISA opening a debonding on-demand lab in Singapore. That's fascinating, thinking about how to undo the bond easily, maybe for recycling

electronic. Debonding on demand. Interesting. Yeah. And Hection is working with bloom biore renewables on renewable adhesive tech, another sustainability angle. Henkel's helping aerospace manufacturers automate more with a new dosing machine for adhesives. Precision is key there, obviously. Parker Comericks launched new thermal gels and fillers, specifically designed to be reworkable and tackle heat and vibration in electronics. So very targeted solutions. And anything on the financial side, just to get a sense of the broader picture. Yeah, a couple of snapshots.

Illinois Tool Works, ITW, they raise their earnings per share guidance, so a positive sign for them. But then PPG reported lower net sales for Q2 2025. So it's not uniform growth across the board. It reflects the wider economy, you know, different segments perform differently. So if we pull it all together, what these couple of years of reporting from adhesives and sealance industry really show us is, well, this industry is changing profoundly. You've got this huge strategic push on sustainability. You've got deep integration into the EV revolution and this constant churn of M&A partnerships, IP battles. It really underscores that idea that knowing about

something isn't as useful as understanding how it connects to the real world, right? So what does all this mean for you listening? Well, maybe the next time you, I don't know, see something being assembled or even just pick up your phone, think about the adhesive. holding it together. They're not just simple sticky stuff anymore. They're these high-tech components, critical enablers for a greener, more automated, more electric future. These kind of invisible innovations, they're quietly shaping everything around us. Definitely worth noticing.