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Kline Research Shows Industrial Fluids Rebound in North America

-- Resurgence in U.S. Manufacturing Drives Growth in Metalworking Fluids; Continued Strong Demand for Industrial Oils Expected in Asia --

PARSIPPANY, NJ, August 1, 2011 –

The North American market for industrial oils and fluids is showing promising signs of post-recession recovery with overall consumption volume up 11% in 2010 over the previous year, according to the latest report Opportunities in Lubricants: North American Market Analysis by worldwide consulting and research firm Kline & Company. Likewise, the global market for metalworking fluids is expected to increase by a CAGR of 2% through 2015, according to the Kline’s Metalworking Fluids 2010 Global Series: Market Analysis and Opportunities.

With U.S. car and light truck manufacturing up some 2.1 million units in 2010 from a recessionary low of just 5.7 million in 2009, all indications point toward an 8.5 million unit production for 2011. This upward trend is expected to drive increased consumption in metalworking, hydraulic, and other industrial oils and fluids over the next few years.

In addition to gains in the transportation equipment industry in the United States, the growing adoption of alternative energy technology is driving demand for synthetic lubricants like gear oil and greases on a global scale, and global trade is fostering increased demand for marine engine oils, and related compressor fluid and hydraulic fluids for the marine transportation market. The study also finds growing opportunities for synthetic food grade lubricants, such as gear oil, white oils, grease, and compressor and refrigeration oils.

“The resurgence in manufacturing is a welcome change for lubricant marketers, particularly specialty suppliers who cater specifically to those industries that were hit the hardest by the downturn, such as automotive and construction equipment manufacturers,” said Milind Phadke, Industry Manager with Kline’s Energy Practice. “Many companies focus on niche applications, leveraging their technical expertise and flexibility to offer specific formulations to meet their customers’ needs. Now that things are beginning to turn around, they will likely see a renewed demand for these specialized services as manufacturers look to optimize production.”

While the North American markets have only recently rebounded from a deficit, demand for metalworking fluids in Asia continues to grow at a healthy rate, sustaining an average 3.3% annual growth rate over the last three years. The continued vitality of the Chinese and other regional manufacturing industries has spurred consumption of metalworking and other industrial fluids across all categories.

Meanwhile, in Europe, metalworking fluid demand has dropped off 1.8% over the past three years, but the loss has been tempered to some degree by the strong manufacturing recovery in Germany and Russia, where exports to Asia and internal demand respectively have buoyed consumption.

With global growth of metalworking fluids forecast at 3% through 2015, Kline’s research indicates regional growth is expected to hit 5% in Asia, 2% in North America, and 1% in Europe, bringing this market back into the black for the first time since the recession began two years ago.

Kline’s Metalworking Fluids 2010 Global Series: Analysis and Opportunities provides an accurate, independent overview of the industry addressing key trends, opportunities and threats on a worldwide basis and by geographic region for the Americas, Europe, and Asia. Volume III: Industrial Oils and Fluids 2010 in Kline’s Opportunities in Lubricants: North American Market Analysis series provides continuing analysis of the products, markets and distribution in the United States, Canada and Mexico to offer subscribers up-to-date information on consumption, products, and suppliers.

Given the recent shifts in the global industrial oils and fluids market, Kline is launching Global Industrial Oils and Fluids 2012: Market Analysis and Opportunities, a complete overview and analysis of the diverse end-use industries and products that make up the industrial oils and fluids market.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

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