Abrasives Manufacturing Industry Profile

The US abrasives manufacturing industry includes about 300 companies with combined annual revenue of about $3 billion. Major companies include 3M and and the US divisions of several international companies. The industry is highly concentrated: the 50 largest companies generate more than 85 percent of revenue.

The global abrasives manufacturing industry generates annual revenue of about $30 billion. Leading abrasives producing countries include China, Germany, and Japan. Major international companies include Noritake (Japan), Saint-Gobain (France), and Tyrolit (Austria).

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. Imports account for about 25 percent of the US market. The largest suppliers to the US are China, Canada, and Germany. Exports, which make up about 15 percent of US production, go mainly to Canada, Mexico, and Germany. The industry is capital-intensive: annual sales per employee are about $300,000.

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 ...