Glass and Fiber Optic Manufacturing Industry Profile

The US glass and fiber optic manufacturing industry includes about 2,000 companies with combined annual revenue of $20 billion. Large companies include PPG Industries, Owens-Illinois, and Corning. The industry is highly concentrated: the 50 largest companies hold more than 80 percent of the market.

Most companies in the industry manufacture products from bulk glass bought from a handful of primary glass manufacturers. Production of optical fiber from glass is included in the industry; use of that fiber to produce fiber optic cable is not.

COMPETITIVE LANDSCAPE

Demand comes mainly from the construction, auto, bottling, and container industries. The profitability of individual companies depends on low-cost operations, because most products are commodities that are bought based on price. Large manufacturers have large efficiencies of scale in operations, which is why the industry is so concentrated. Small manufacturers can compete effectively by producing specialty products or serving a local market.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are glass containers, flat glass, fiberglass, and specialty products such as TV tubes, glassware, lenses, mirrors, and optic fiber. Specialty products account for more than 60 percent of industry revenue, containers about 20 percent, and flat glass about 15 percent.

Bulk glass is made by melting quartz sand and adding various substances such as limestone, soda ash, metals, and other materials to produce a "melt." The melt is then formed, cooled, and further processed by grinding, cutting, and polishing into finished products. Glass furnaces, ...