Ceramic Industry News

Large Companies Dominate Abrasives Market

July 26, 2012
KEYWORDS abrasives
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The U.S. abrasives manufacturing industry includes about 300 companies with combined annual revenue of about $4 billion, according to Research and Markets’ new “Abrasives Manufacturing” report. Major companies include 3M and the U.S. divisions of several international companies. The industry is highly concentrated: the 50 largest companies generate more than 85% of revenue. The global abrasives manufacturing industry generates annual revenue of about $30 billion.

Demand for manufactured industrial products is reportedly the major driver of sales for abrasives. The profitability of individual companies depends on effective marketing, as many products are considered commodities. Larger companies can make large investments in new technology. Small companies can compete effectively by specializing in products for particular manufacturing functions.

Imports account for about 25% of the U.S. market; the largest suppliers to the U.S. are China, Canada, and Germany. Exports, which make up about 15% of U.S. production, go mainly to Canada, Mexico, and Germany. The industry is capital-intensive: annual sales per employee are about $300,000.

For additional information, visit www.researchandmarkets.com.

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