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 1,340 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 1,340 companies that employ 136,700 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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Mar 30, 2024 - Wages Rose, Jobs Fell in 2023
                                  • Employment by rubber products manufacturers fell 3.7% in December compared to a year ago after rising nearly 5% in the previous annual comparison, according to the US Bureau of Labor Statistics. Meanwhile, average industry wages were $25.32 per hour in December, a 6.1% year-over-year change, per the BLS. While producer prices for rubber products manufacturers rose 1.8% in December year over year, prices increased at a more moderate pace compared to recent years.
                                  • 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 reported in January. 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.
                                  • US medical glove makers and producers of the synthetic rubber used to make exam gloves are struggling as federal funding has dried up in the aftermath of the pandemic, NPR reports. To reduce reliance on imports from Asia and prevent future shortages of protective gear, glove-manufacturing projects received some $290 million in public funding as part of a roughly $1.5-billion investment made by the US government since the start of the pandemic to boost American production of medical masks, gowns, and gloves, plus the raw materials needed to make them, according to NPR. However, manufacturers say the effort has stalled and that some US companies trying to make personal protective equipment (PPE) face financial circumstances that could drive them out of business. "The commitment the US Government made just three years ago appears to have been abandoned," executives recently wrote to lawmakers in Congress cited by NPR.
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