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

                                  Nov 25, 2022 - Bridgestone Invests in Guayule Production
                                  • Bridgestone in November was awarded a $35 million climate-smart grant by the US Department of Agriculture to invest in the desert shrub guayule to expand natural rubber production in the US and provide growers in the Southwest with a more environmentally sustainable crop amid an ongoing water crisis. The investment in guayule production will allow the tiremaker to expand natural rubber production with lowered greenhouse gas emissions and to create jobs in the region for local farmers and Native American tribes to build a rubber bio-economy based on climate-smart and sustainable practices, Rubber World reports. Bridgestone in 2015 produced the first tire made from guayule-derived natural rubber. More recently, the company announced it is expanding the number of local farmers it partners with in Central Arizona and is targeting 350 new acres of guayule to be planted in 2023.
                                  • Manufacturers are facing a potential shortage of diesel fuel that has driven up the price to a record premium over gasoline and crude oil, The Wall Street Journal in November 2022. While the price of gasoline is up about 14% so far this year, the price for diesel has risen by about 50%, to $5.35 a gallon, according to energy price data from AAA/OPIS. The gains widened the gap between the two fuels to an all-time high of $1.61, versus 23 cents a year ago. Dwindling stocks, the war in Ukraine, severe weather, and other disruptions to the global energy markets are behind the widening gap, according to WSJ. Wholesale diesel, delivered into New York harbor, traded at a record premium to crude oil in October, according to the Energy Information Administration, which also reported the country had only 25 days of diesel in reserve, the lowest since 2008.
                                  • The return to the office after more than two years of remote work during the pandemic is driving demand for car repairs, The Wall Street Journal reported in September 2022. As more workers get back to commuting – with many choosing to drive alone rather than taking public transportation – vehicle and tire wear and tear are increasing. Returning to commuting amid record high new car prices is causing some motorists to hold on to older cars and driving sales of replacement tires and car parts needed for repairs and maintenance.
                                  • Demand for medical gloves, which surged during the COVID-19 pandemic, is expected to continue to rise driven by the growing spread of infectious diseases, increasing incidence of hospital-acquired infections and growing awareness on safety, according to a new Research and Markets analysis. The global medical glove market is estimated at $21.8 billion in the year 2022 and is projected to reach a revised size of $29.8 billion by 2026, a CAGR of 13.2% over the forecast period. The majority of medical gloves are made of latex, which typically is composed of about 55% water and about 40% rubber material.
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