The market environment continues to point towards solid growth potential for the industrial gases business, with modest growth projected for second-half 2014 and strong optimism for 2015, says an analyst with League Park Advisors.

Wayne Twardokus, Director at League Park, was talking exclusively to gasworld magazine ahead of its upcoming global update report.

Looking ahead to the second-half of 2014, Twardokus affirmed that growth will be modest in line with the gradual pace of global economic development.

“Mediocre growth with strong optimism,” he said. “The US industrial and global economy continues to experience modest growth in the first half of 2014 as the pace of the recovery continues to be delayed.”

“The delayed recovery can be seen in the soft organic growth sales results; however, the market environment continues to point towards solid growth potential. Many companies are optimistic about the second half of 2014 and 2015.”

One area that is of particular encouragement for the gases industry is the improving energy outlook in North America, with the expectation that US production of natural gas will expand dramatically.

Asked what effect this might have on the gases industry, Twardokus explained, “Solid long-term demand. The demand will not only be driven by the large volume of industrial gas needed for the extraction and refining process, but the energy position is driving large investments in chemical and manufacturing production.”

“Further,” he added, “as North America’s global energy position has improved, we are seeing the re-shoring of large volumes of chemical production. Private equity investors are clamoring to find energy intensive chemical companies that will benefit from a sustained period of reduced input costs.”

Read more from Twardouks, gasworld Business Intelligence, and the broader outlook for the global gases business in the July issue of gasworld magazine.