Abrasives Manufacturing Industry Profile

Companies in this industry manufacture coated and bonded abrasive products, including grinding wheels, sandpaper, and abrasive grains. Major companies include 3M (US), Noritake (Japan), Saint-Gobain (France), and Tyrolit (Austria).

The global abrasives manufacturing industry generates annual revenue of about $30 billion. Leading abrasives-producing countries include China, Germany, and Japan. China is the largest source of abrasive imports to the US and the fastest-growing among the top suppliers.

The US abrasives manufacturing industry includes about 300 companies with combined annual revenue of about $5 billion and is expected to grow at a high rate in the next two years. Key growth drivers include production in key markets such as construction and automotive, as well as overall manufacturing output.

COMPETITIVE LANDSCAPE

Demand for manufactured industrial products is the major driver of sales for abrasives. The profitability of individual companies depends on effective 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. The industry is highly concentrated: the 50 largest companies generate more than 85 percent of revenue.

Imports account for about 30 percent of the US market. The largest suppliers to the US are China, Germany, and Canada. Exports, which make up about 20 percent of US production, go mainly to Canada, Mexico, and Germany.

PRODUCTS, OPERATIONS & TECHNOLOGY

Abrasive products are made of grains of hard minerals and ...