Economic uncertainty does not stop growth

Covid-19, raw material shortages, price increases — all of these issues have posed serious challenges for Mapei Corporation in the past few years. However, they have also provided us with the opportunity to learn quickly, to adjust rapidly, and to meet these challenges and to grow in a turbulent market - growing a strong 18% from 2021’s numbers. In fact, the net sales amount in 2022 for Mapei Corporation in the USA was over 856 million US dollars. Mapei subsidiaries in North America (USA, Canada, and Puerto Rico/ the Caribbean) totalled 1 billion US dollars in gross sales. 

This is a remarkable performance in contrast with the US economy. In Q4 2022, the American GDP grew by 2.9%, according to the U.S. Bureau of Economic Analysis (BEA). The growth of the U.S. economy in Q1 2023 is predicted to be an even slower continuation of the previous quarter as the effects of high inflation and high interest rates combine to have a chilling effect. In fact, according to the forecasting models at Bloomberg Economics, these interest rate increases have created a 72% increase in the risk of an economic recession by Q1 of 20242.

The BEA further reports that “Within residential fixed investment, the leading contributors to the decrease [in GDP] were new single-family constructions.” That downturn for the construction industry is echoed in forecasts from most of the leading indicators, including ConstructConnect whose Spring 2023 Construction Starts Forecast states: “Total construction starts are expected to decline 4.8% in 2023.”

But amid the caution, there is some room for hope.

Mapei Corporation’s commercial business is still showing positive signs of growth. As remodelling becomes a more popular alternative to purchasing a new home, our commercial placement in popular home improvement stores will meet this need. 

The fact that our product is available at a “good, better, best” array of consumer price points, while being perceived as an industry leader is a helpful driver as well. All of this combines to help us maintain our position in the market as the No. 1 desired brand.

We are also very well integrated with the architectural community, which means that we should fare much better in those sectors of the construction business. Our data is now listed on Arcat, MasterSpec, and SpecLink, which means that now architects and specifying engineers can easily find the latest Mapei product information, including sustainability documentation and CADs from any device, including a mobile phone. This puts Mapei expertise at their fingertips no matter the specification app or the time of day.

Additionally, we are heavily involved in major infrastructure projects, which will be a continued driver for us in 2023. Our Admixtures for Concrete line will be debuting a new line of products that will combine innovation and sustainability, creating a renewed focus for the concrete admixtures segment of the industry. 

Our Underground Tunneling Team (UTT) is involved in several major projects now, keeping Mapei injection waterproofing materials and soil conditioning solutions active in the underground market. 

Our Concrete Restoration Systems are also actively involved in major projects ranging from Department of Transportation (DOT) initiatives to popular fast-food restaurant franchises. 

We have grown in the face of this national “uncertainty,” staying steady and continuing to support our customers throughout North America. Our expansion encompasses the following facilities and production capabilities:

All of this combines to create a company that is hopeful in the face of uncertainty and poised to meet future challenges with a comprehensive plan for growth. With focus and strong attention to detail, we will meet and surpass our goals. Therefore, this year, Mapei subsidiaries in North America (comprised of Mapei Corporation, Mapei INC., and Mapei Caribe) is committed to, and convinced that, we will attain our net 1 billion US dollar goal by the end of 2023. I am convinced that this goal is attainable. After all, in the words of the late Giorgio Squinzi, “at Mapei we never stop pedalling.”

During this time of hesitation, we are more than ever committed to our pillar of Social Engagement. Through our strategic partnership with Black Buffalo 3D (manufacturer of 3D printers) we have embarked on an effort to manufacture, via 3D printing with our PLANITOP 3D mortar/ink, homes for families who are economically challenged.

The system has been awarded ICC-ES AC509 certification, which means that walls constructed with PLANITOP 3D have been found to meet the same code requirements as traditional concrete walls. Large-scale 3D construction printers and ink/mortar are now poised to improve the way that the world faces challenges related to affordable housing, emergency shelters, and resilient infrastructure. This innovation provides a faster, more efficient, and more affordable approach to residential and commercial custom construction, putting affordable housing within the reach of more people. Currently we have projects in Virginia, and we have projects that are in early planning stages in Texas, and Oklahoma.

Our affiliation with the Gary Sinise Foundation has remained strong, throughout the Covid-19 shutdown and now with the shortages facing the building industry. The Foundation’s mission is to build smart homes using donated materials and to present them free-of-charge to the men and women who have been wounded in the service of our country. Although the numbers of homes built have declined in recent years, first due to Covid-19 and now due to building materials issues, the program has never stopped building homes. In 2022, we donated installing materials and systems for heating floors for six homes.