North American float glass sector faces cost increases as Middle East conflict escalating

The North American glass sector is facing serious headwinds as the ongoing war in the Middle East leads to rising cost pressures for the building sector, which threatens further disruptions in the market, according to leading analysts. As the conflict with Iran continues, the industry faces rising energy costs, and potential for higher shipping and insurance costs and potential for delays, they say. 

Strained Oil Supply Raises Energy Costs for Glass Companies

Canadian manufactures are most concerned with increasing energy prices caused by the disruption of shipping in the Strait of Hormuz, says Adrian Edge, director of codes and regulatory affairs for Fenestration Canada.

“Geopolitical tensions in the Middle East could influence prices because of their effects on oil supply and broader energy markets. Float glass manufacturing is energy-intensive, so energy price volatility affects production costs in a meaningful way,” says Edge.

According to Edge, 88% of Canada’s imported glass came from the U.S. at the beginning of 2025. According to more recent data from Statistics Canada, U.S. glass imports now comprise 75% of imported glass. Edge considers this a notable change in a relatively short period of time, and also observes that local buyers have begun importing more glass from Europe and Asia.

Edge expects that the ongoing war with Iran and the further growth of costs will further support this trend, with buyers from the U.S. and especially in Canada buying more imported glass from Europe and Asia.

Sudip Saha, a co-founder of the international research agency Future Market Insights, believes that the Middle East conflict is likely to be mildly to moderately negative for the U.S. float glass sector, mainly due to indirect cost pressure rather than direct supply disruption.

“Float glass is a continuous, energy-intensive furnace business, so producers are exposed when geopolitical tensions raise oil, gas, freight, and war-risk insurance costs. These higher input and logistics costs can compress margins, especially because furnaces cannot be easily slowed or shut without economic loss,” Saha explains.

Analysts at Future Market Insights also say that higher shipping and insurance costs reduce trade efficiency for a bulky product like float glass. In addition, that can delay glazing, façade, and construction projects in the entire North American region, weakening downstream demand.

As a result of these price increases, Edge noted that some Canadian companies are increasingly buying glass imported from Europe and Asia. 

One of the companies that is looking to expand its North American presence is the major Turkish glass producer Sisecam, which has traditionally considered the U.S. market as one of the priorities for its growth.

“With our newly commissioned capacities in the energy glass segment, we are now setting our sights on expanding in the U.S. market,” says Pinar Selik, an official spokesman of Sisecam. “As part of this strategy, the U.S. has been identified as our primary export market. While we have been active in the architectural glass market for many years, we are now focused on meeting the growing demand for value-added products, positioning ourselves to further strengthen our presence in this key market.”

Despite increasing glass imports, Fenestration Canada’s Edge does not anticipate that the war will affect float glass supply in North America. “The handful of float glass plant conversions to solar glass, away from architectural glass, currently underway in the U.S., are likely to have a much greater impact on supply,” he says .

Future Market Insights analysts also remain generally optimistic, believing that the effects of the Middle East war should not be overstated for the American float glass market.

“Near-term market conditions may remain supported by seasonal demand and firm pricing sentiment,” says Saha. “In addition, U.S. domestic production capacity and existing trade protection reduce the chance of a severe import shock. Overall, the conflict is better understood as a profitability risk than a survival risk, while if it persists for months, the impact could widen into weaker trade flows and softer project demand.”

Analysts forecast broader disruptions for construction sector

While the war may have limited effects on float glass supply, it could compound ongoing difficulties for the North American construction sector more broadly. In an interview International Banker magazine published in March, Ken Simonson, chief economist, Associated General Contractors of America, says that contractors see more limited opportunities in 2026 than a year earlier. According to him, they face heightened risks of project disruptions, particularly from immigration enforcement and owner hesitancy about committing to projects. 

In Canada, the war with Iran is affecting smaller construction companies. Statistics Canada (StatCan) released a report  in March which found that construction companies have been decreasing in productivity nationwide, and that smaller firms accounted for the overall decline in labor productivity.

Experts at the American Institute of Architects (AIA) also see serious risks to the American construction sector due to the Middle East war and its negative impact on construction. According to AIA’s Chief Economist Richard Branch, higher energy costs feed directly into materials and transportation, raising project costs and increasing the likelihood of delays or cancellations.

“What was expected to be a flat year for building activity could quickly turn into a downturn if elevated energy prices persist. For energy-intensive materials like float glass, the impact is even more direct. Sustained increases in energy prices raise production costs, which ultimately feed into higher material prices for the construction sector,” Branch says.