Abrasives Manufacturing

The US abrasives manufacturing industry includes about 300 companies with combined annual revenue of $4 billion. Major companies include the abrasives divisions of 3M and Saint-Gobain. The industry is highly concentrated: the 50 largest companies generate 90 percent of revenue.

COMPETITIVE LANDSCAPE

Demand for manufactured industrial products is the major driver of sales for abrasives. The profitability of individual companies depends on good 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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Abrasive products are made of grains of hard minerals and are used to produce and maintain a wide variety of manufactured products made of metal, plastics, glass, and wood. Abrasives are used to shape materials through grinding; smooth surfaces during manufacture; remove surface layers of paint or corrosion; cut hard materials like concrete or steel; and polish, buff or "lap" finished products. The two major types of abrasive products are coated and bonded.

Coated products consist of grains of a hard mineral that are bonded to a backing sheet, belt, pad or wheel made of paper, nylon cloth, rubber, or other material. Various glues and urea or phenolic resins enable the bonding. Coated products are made in two coating stages: first a "make" coat is applied that binds the abrasive mineral to the backing, then a "size" coat is applied on top ...