Business for Sale Industry Economics
2005 - 2020
2020 - 2026
The Abrasive and Sandpaper Processing industry manufactures a wide range of abrasive materials that are used in a variety of applications in the manufacturing, automobile, aerospace, telecommunications, building, repair, and repair industries.
Demand from these main consumer segments has driven business growth for the majority of the five years leading up to 2020.
However, this expansion has been hampered by rising import competition, falling oil prices in the first half of the year, and a declining manufacturing sector.
For the five years to 2020, market sales fell at an annualized rate of 7.5 percent to $4.0 billion, with a drop of 11.2 percent in 2020 alone.
However, the COVID-19 is responsible for a large portion of the downturn in 2020.
Abrasives used by the Abrasive and Sandpaper Manufacturing industry are widely used for grinding, cutting, mixing, sanding, and finishing processes in a variety of industries, including metal fabrication, precision castings, cylindrical grinding, furniture and model wood production, and automotive manufacturing.
Abrasives are also commonly used in concrete digging, road building, and mining.
As a result, the health of the domestic downstream manufacturing and building industries it represents has a significant impact on the sector.
Revenue has been slowing in recent years as a result of slow deliveries to car and manufacturing customers.
Over the five years to 2025, the Abrasive and Sandpaper Manufacturing industry is expected to return to modest sales growth, rising by an annualized 4.0 percent to $4.9 billion.
Sustained, solid macroeconomic conditions in both the United States and the global economy would likely fuel demand for domestically produced industry products, but this is contingent on COVID-19 (coronavirus) pandemic recovery efforts.
Increased consumer spending is expected to boost downstream demand for appliances, electronics, and durable goods.
Furthermore, the industry is projected to benefit from sustained demand for construction operations, such as residential buildings, which will drive demand for coated abrasives even further.
Furthermore, an expected weakening of the US dollar over the forecast period would likely reduce the cost of domestically produced abrasive products, making them more appealing to downstream consumers.
Real or synthetic abrasive products such as grinding wheels, polished or bonded fabrics, sandpaper, and other abrasives are made by industry operators.
Abrasive ingredients include gems, garnet, and silica powder; processed minerals such as fused alumina and silicon carbide; super abrasives such as synthetic diamond; and metal abrasives such as steel fired, gravel, and sand.