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.

Regulation and Safety

The industry is highly regulated due to the chemical mixtures and processes used to manufacture rubber products.

Varying Raw Material Costs

Manufacturers face significant fluctuations in the price of synthetic rubber from year to year.

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 133,900 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, Protolabs, Inc., CTI Industries, Ames Rubber Manufacturing, Warco Biltrite, Passaic Rubber, and Jefferson Rubber Works.
                                  Industry Forecast
                                  Rubber Product Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 30, 2023 - Malaysia Steps Up Promotion of High-Value Rubber Exports
                                  • US makers of rubber products may face increased competition and higher prices for rubber due to stepped up efforts by Malaysia to promote its high-value rubber exports, Rubber World reports. The Malaysian Rubber Council (MRC) is looking to boost exports of high-value rubber products like rubber gloves, tires, and latex mattresses through such promotional activities as international trade fairs, trade missions and business matching, educational seminars and advertising. Malaysia is focusing its efforts in major markets such as the United States and Europe and in countries with large populations and potential such as China, India, Indonesia, Vietnam, Mexico, Brazil, Russia, South Africa, Pakistan and Turkey. Malaysia’s drive to increase its exports has increased demand for local natural rubber and led to an increase in the rubber floor price, according to the country’s Plantation and Commodities Ministry.
                                  • Rising interest rates and the strong US dollar are putting the US manufacturing sector at risk, The Wall Street Journal reported in March. New orders for manufactured goods shrank for the sixth consecutive month in February, according to surveys by the Institute for Supply Management. Also, manufacturing output is down 1.7% from its post-pandemic peak in May 2022, according to a three-month moving average of Federal Reserve data, WSJ reports. The Fed’s aggressive interest rate hikes are raising the cost of borrowing – making machinery purchases more expensive – while the strong dollar is depressing US exports. “As the Fed continues to hike, manufacturing is going to be in the crosshairs,” Jonathan Millar, senior US economist at Barclays PLC told WSJ. “It’s hard to see this sector not suffer some sort of a downturn that is more significant than what we’ve seen already.”
                                  • The February derailment of a Norfolk Southern train carrying hazardous chemicals is placing a renewed focus on rail safety, The Wall Street Journal reports. Butyl acrylate – an ingredient in acrylic rubber, commonly used in automotive transmissions and hoses – along with other hazardous and toxic chemicals was released to the air, soil, and waters at the accident site in Ohio, according to the EPA. Chemical manufacturers rely heavily on rail for transporting products, with freight railroads originating 2.2 million carloads of plastics, fertilizers and other chemicals in 2021, according to the Association of American Railroads. In the first legislation proposed since the derailment, a bipartisan group of lawmakers has proposed that the Transportation Department impose stricter rules.
                                  • Overall rubber demand will increase by 2.8% in 2023, followed by an average annual 2.4% growth in rubber demand between 2023 and 2031, the International Rubber Study Group (IRSG) forecasts. Global demand for natural rubber is forecast to slow to 2.8% this year, following a sharp recovery between 2021 and 2022. Natural rubber production recovered by 5.4% in 2021, but remains below its 2018 peak. However, natural rubber production is forecast to further expand by 2.9% in 2023. Synthetic rubber demand, which also recorded a solid recovery of 11.1% in 2021, is anticipated to grow 2.8% in 2023. The global rubber market is expected to tighten due to the lower rate of new plantation development and replanting, according to Apple Rubber, a designer and manufacturer of seals and sealing devices.
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