INSULATION -- Everything you wanted to knowand more.

WHAT IS INSULATION?
Heat flows naturally from a warmer to a cooler space. In winter, the heat moves directly from
heated living spaces to the outdoors and unheated areas like attics and basements. During the
summer, heat moves from outdoors to the house interior.
Insulation is a product that that blocks this transfer of heat, helping to keep your home and office
either cool or warm. We like to think of it as a mousetrap for warm air. It is rated in terms of
thermal resistance, called R-value, which indicates the resistance to heat flow and the higher the Rvalue, the greater the insulating effectiveness. The Department of Energy maintains a website that
can help consumers select the appropriate R-value product but generally speaking, the further north
you go, the higher the R-value needed
(http://www.energysavers.gov/your_home/insulation_airsealing/).

Although we generally think of insulation in terms of thermal comfort, it is an excellent sound

absorber, and when installed in walls and ceilings, can reduce the transmission of sound from other
rooms or from the outside.
Insulation products can also be used to reduce moisture transmission. For example, many fiberglass
batts and blankets (which well learn more about shortly) come equipped with a facing material
that acts as a vapor retarder to help resist the movement of moisture vapor to cold surfaces where it
can condense.
TYPES OF INSULATION
There are four main types of insulation: 1) loose-fill; 2) rigid board insulation; 3) spray foam
insulation and 4) batt and blanket insulation.
Loose-fill, like the name suggests, is composed of loose fibers and fiber pellets that are blown into
cavities or attics using special equipment.
Rigid board insulation is generally composed of fiberglass, polystyrene, or polyurethane and comes
in varying thicknesses. It is primarily used for reroofing flat roofs and basement.
Spray foam insulation is a two-part liquid containing a polymer agent and a foaming agent. It is
sprayed into small spaces and cracks to make things airtight.
Batt and blanket insulation is the type of insulation most of us are familiar with. It is composed of
mineral fibers, either processed fiberglass or rock wool, and comes in blanketed rolls of different
widths. It is normally fitted between wood frames and rafters to insulate below the floors in homes,
above the ceilings and within the walls.
WHERE IS INSULATION USED?

Residential/Commercial
High density insulation
o Ducts
o Ovens
o Refrigerators
o Cube walls

NONWOVEN INSULATION PRODUCTS

Most of the insulation sold in the U.S. is fiberglass nonwovens sold in rolls, batts and blankets,
which you have probably seen at your local Lowes or Home Depot. Fiberglass insulation is made
from very fine strands of glass held together in a thick, random mat. Between the fibers are minute
pockets of air. It is made using a meltblown process during which glass is melted and extruded onto
a belt. By altering the speed of the belt, you can change the thickness and density of the insulation.
During the extrusion process, phenol formaldehyde is added, which prevents the compacting of the
insulation and gives it resilience. If the insulation were compacted it wouldnt be able to trap air
and would inhibit the insulations effectiveness. Although some have expressed concerns about the
presence of formaldehyde in these products, the amount is truly negligible and only a minute
amount remains in the final product.
In Europe, they tend to use rock wool insulation (a.ka. mineral wool or slag wool) instead of
fiberglass, which is made from mineral waste and is regarded as a dirty manufacturing process.
Fiberglass and Rockwool are equally effective in insulating.
HOW BIG IS THE INSULATION MARKET?
Currently, the total insulation business in the U.S. is approximately $8.5 billion, but it is expected to
show significant gains, with demand projected to rise some 5.3 percent annually through 2012,
based on renewed growth in housing construction. Fiberglass will remain the leading insulation
material and outpace demand for the second largest type, foamed plastic. Reflective insulation and
radiant barriers will see the fastest growth, albeit from a small base.
WHO ARE THE PLAYERS?
Largest Insulation Manufacturers
In priority order:
Saint Gobain largest global manufacturer of insulation; U.S. affiliate is CertainTeed.
Knauf maintains plants in the U.S. and Europe
Owen Corning Used to have manufacturing locations in both the U.S. and Europe but sold
European plants to help pay for asbestos claims.
John Mansville
Insulation Industry Associations
The National Insulation Association (NIA) is an Alexandria, VA-based association that represents
the mechanical and specialty insulation industry. The association has a staff of 10 and an annual

budget of $1-2 million and maintains a membership of approximately 450 member companies
consisting of contractors, manufacturers, distributors, laminators and fabricators. NIA holds two
major events each year, the annual convention in the spring and Committee Days, a meetingsoriented event, which occurs in the fall in the DC/Virginia area.
Also located in Alexandria, VA, the North American Insulation Manufacturers Association
(NAIMA), a trade association representing North American manufacturers of fiberglass, rock wool
and slag wool insulation products. NAIMAs role is to promote energy efficiency and
environmental preservation through the use of fiberglass, rock wool, and slag wool insulation
products and to encourage safe production and use of these insulation products. They have 13
people on staff and a budget of $2-5 million. The big players companies listed above are all
members of NAIMA.
There are 8 additional associations listed in the National Trade and Professional Associations book.
They have to do with electrical, distributors etc.
CHALLENGES
Global slow down in commercial and residential construction due to the ongoing economic
recession, tight credit market, etc.
OPPORTUN ITIES
Growing Interest in Energy Efficiency Among Policymakers
The Energy Policy Act of 2005 provided tax incentives for improved energy efficiency including
addition of insulation to residential and commercial buildings; October 2008, Pres. Bush signed into
law provisions extending these consumer tax credits through the end of 2009.
Both the House and Senate versions of the stimulus bill currently being debated contain provisions
allocating billions towards energy efficiency measures, including tax benefits for weatherizing
homes.
The Obama Administration has already begun the process of calling for stricter energy efficiency
regulations in terms of higher fuel-efficiency standards and we can expect that trend to extend into
other arenas and through states and localities.
Public/Consumer Interest in Energy Efficiency/Sustainability
Whether driven by financial reasons or a more ideological commitment to sustainability, we can
expect to see a growing interest in products that help increase energy efficiency, including thermal
insulation products.
For the cost conscious consumer, insulation reduces the transfer of heat, thereby lowering heating
and cooling bills. For the green-consumer concerned about long-term sustainability, insulation
lowers our use of energy, thereby preserving existing resources.

Companies like Owens Corning are capitalizing on these sentiments during the
construction/building slowdown and are working to grow a new market category re-insulation.
According to the Department of Energy standards, nearly 80 million U.S. homes are estimated to be
under insulated. The company says its business solutions can help customers capture these reinsulation opportunities.
There is a huge opportunity in the retrofit market to create sales in an environment where new
construction is at its slowest since the 1970s, said Dave LeHotan, president of All Construction
Services, a branch of Installed Building Products, out of Brunswick, Ohio, and an Owens Corning
customer, who has been a long-time proponent of upgrading insulation to todays standards. We
have positioned our company to take full advantage of the re-insulation opportunity, and with this
launch, Owens Corning will be providing a solution to fully tap the market.
Insulation is the answer, continued LeHotan. Saving money and energy is on everyones mind,
and insulation offers the best bang for your buck. Working with Owens Corning is helping us make
the most of the re-insulation opportunity.
Largest Markets for Insulation?
Europe? Why? After the oil price increases Europe established stricter regulations requiring
insulation. Also people in the Mediterranean and Arab Countries have discovered air conditioning
and air conditioning requires insulation. Other growing markets are Mexico and Latin
America..guess they like air conditioning, too.