Rubber Product Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,300 rubber product manufacturers in the US process natural, synthetic and reclaimed rubber materials into a wide range of rubber products. Products include tires and inner tubes, hoses and belts, fuel bladders, rubber bands and erasers, balloons, haircare products, pacifiers and baby bottle components, floor and car mats, inflatable mattresses and pools, latex foam rubber, roofing membranes, sheathing, and rubber components for machinery.
Varying Raw Material Costs
Manufacturers face significant fluctuations in the price of synthetic rubber from year to year.
Regulation and Safety
The industry is highly regulated due to the chemical mixtures and processes used to manufacture rubber products.
Industry size & Structure
A typical tire manufacturer employs about 604 workers and generates about $250 million annually. A typical tire retreading manufacturer employs 23 workers and generates $6 million annually. A typical hose and belt manufacturer employs 101 workers and generates $28 million annually. A typical manufacturer of mechanical rubber products employs 93 workers and generates $23 million annually.
- The rubber products manufacturing industry consists of 1,300 companies that employ 135,000 workers, and generates $45 billion annually.
- Primary customers include automotive (manufacturers, suppliers, and repair shops), machinery and appliance manufacturers and repair services, aerospace (manufacturers and suppliers), industrial supply distributors, building materials suppliers, and consumer retail.
- The tire manufacturing segment is highly concentrated with the eight largest firms representing 85% of revenue. For the rest of the industry, the top eight firms in each segment represent 30-52% of their segment’s revenue.
- Large companies include Michelin, Goodyear, Bridgestone, Proto Labs, Inc., CTI Industries, Ames Rubber Manufacturing, Warco Biltrite, Passaic Rubber, and Jefferson Rubber Works.
Industry Forecast
Rubber Product Manufacturers Industry Growth
Recent Developments
May 30, 2024 - Prices Flat Amid Falling Sales
- Producer prices for manufacturers of rubber products were flat in March compared to a year ago after climbing 9% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Producers’ pricing power has declined amid falling sales. Sales for plastic and rubber products companies sank 15% in the fourth quarter of 2023 compared to Q4 2022 and were down 11.6% from the previous quarter, according to the Census Bureau. Employment by rubber products manufacturers has been trending downward and declined by 2.7% in March year over year while average industry wages dipped 1.5% over the same period to $24.80 per hour, BLS wage data show.
- More than 200 chemical plants across the US – including those producing chloroprene used to make rubber footwear – will be required to curb airborne toxic pollutants under a new regulation announced by the Biden administration, The New York Times reported in April. The new EPA rule has classified chloroprene as a likely carcinogen. Most of the plants affected by the rule are in Texas, Louisiana and elsewhere along the Gulf Coast and in the Ohio River Valley and West Virginia, according to NYT. Other toxic chemicals covered by the rule include 1,3-butadiene, which is used to make synthetic rubber and plastics, and ethylene dichloride and vinyl chloride, both of which are used to make a variety of plastics and vinyl products. The EPA said that the rule would cut toxic pollutants by 6,200 tons annually and reduce emissions of ethylene oxide and chloroprene by 80%.
- With the global natural rubber supply under pressure from disease and rising demand, scientists at Ohio State University are working to bolster the US rubber market by extracting latex from two sustainable North American plants, RubberWorld reports. A species of dandelion (Taraxacum kok-saghyz) and the guayule shrub are the focus of the research, which seeks to improve efficiency and increase latex yield. “We need to have efficient extraction methods for any and all alternative natural rubber-producing species, especially at a large scale,” said lead researcher Professor Katrina Cornish, adding, “And they have to be low-cost … to compete in the tire market in the long term.” The US produces synthetic rubber but depends on imports of natural rubber. In 2019, 10% of the natural rubber supply was lost to disease. If South American leaf blight were to reach Southeast Asia, it could rapidly wipe out most of the world’s natural rubber supply.
- Elkem completed its first pilot for carbon capture and storage (CCS) at its plant in Rana, Norway, Rubber World reports. The pilot, conducted between November 2022 and June 2023, recorded CO2 capture rates of up to 95%, indicating the technical viability of CCS in silicon smelters. “The key learnings from this pilot help us know how to optimize our plants for potential future implementation of carbon capture,” said Elkem’s Climate Director, Trond Sæterstad. The high capture rates of up to 95%, combined with low amine degradation, demonstrated the technical effectiveness of the technology. The challenge now is to make the process commercially viable in a competitive global market. Carbon Capture is included in Elkem’s climate strategy toward reaching net zero emissions by 2050. The manufacture of synthetic rubber in primary forms involves the use of fossil fuels, which emit carbon dioxide and other greenhouse gases.
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