Report Estimates Growth in Glass Product Manufacturing Industry
April 25, 2012

by Sahely Mukerji, smukerji@glass.com

The glass product manufacturing industry in the U.S. is estimated to grow 2 percent in 2012-2017, but the plastic and metal substitutes will limit its growth, according to a recent report titled "Glass Product Manufacturing in the U.S." from IBISWorld in Santa Monica, Calif.

Industry sales have decreased since the late 1990s, but increased in the mid-2000s. Consequently, revenue is expected to go down an average of 1.6 percent over the years 2007-2012. In 2012, the glass product manufacturing industry in the U.S., encompassing 1,739 businesses, is expected to post $22.7 billion in revenue and $2.1 billion in profits.

The report analyzed four main product categories: flat glass, pressed or blown glass, glass containers and glass products made from purchased glass, such as mirrors, lighting and kitchenware.

The decline in the domestic manufacturing industry is partly because of imports and partly due to the substitution of glass container products by alternative packaging materials, such as aluminum cans and plastic bottles, according to the report. This trend is expected to continue.

The demand for automotive glass products also will continue to be weak, as the volume of U.S. automotive production went down at an average rate of 18.4 percent per year 2007-2010.

The flat glass segment's total revenue went down at an average of 6.8 percent per year from 2007-2012 as a result of the recent slump in the construction industry. However, demand for flat glass from the construction market is expected to pick up 5.5 percent per year over the period of 2012-2017.

While flat glass used in window manufacturing does not have competitive substitutes, glass used in cladding building envelopes faces competition in traditional cladding, such as steel, timber and bricks. However, glass is estimated to have an increased share of the building envelope market over the last decade and this trend is likely to continue, the report states.

Industry wages also are expected to drop from 2007-2012 at an average of 1.7 percent per year to $5 billion, and employment is expected to go down at an average annual rate of 2.2 percent, according to the report. The number of firms is expected to reduce at an annual average rate of 0.7 percent to 1,680 firms in 2017 as a result of consolidation.