Thousands of private companies participate in the $13.7 billion fabricated glass products market, as producers and distributors of value-added flat and other glass products.

Thousands of private companies participate in the $13.7 billion fabricated glass products market, as producers and distributors of value-added flat and other glass products. The flat glass products segment is dominated by five producers, including one private firm, which together accounted for

over 50 percent of the market in 1998. The other segment is more fragmented, although several private companies are significant in individual product segments. Overall, five private companies have fabricated glass product sales of at least $100 million, the largest of which has over $1 billion. Additionally, 17 other private companies have total corporate sales of at least $100 million, including products other than fabricated glass.

Most private companies do not produce their own raw unfabricated glass, but instead operate solely as second tier manufacturers, fabricating value-added glass products. A handful of larger firms, however, including a few private companies, are back-integrated as primary tier one glass manufacturers, providing unfabricated raw glass for captive as well as outside use. Others participate as independent distributors and glazing contractors.

Private companies have been involved in a variety of mergers and acquisitions, both as targets and purchasers. While some glass fabrication companies have been acquired by end-user product (e.g., window and door) manufacturers, other fabricators have forward-integrated their operations by acquiring companies with existing distribution channels. Additionally, consolidation of similar product lines via acquisitions has been a path to growth for smaller regional private companies.

Despite the presence of a handful of very large competitors, thousands of private companies are able to compete in this industry due to the wide variety of glass products. This diversity allows firms to participate as niche fabricators, specializing in a particular glass product or market. Additionally, the numerous processes involved in glass fabrication allows for further specialization. The product ranges and relative positions of the five leading private glass fabricators are highlighted below.

US sales of fabricated glass products (excluding glass containers and glass fiber optics) are forecast to advance 4.5 percent annually through 2003 to $17.1 billion. Improved performance characteristics of flat glass, including strength and energy efficiency, and the overall growth in the electronics, and building repair and remodeling sectors will help drive gains. Continuing trends toward the construction of larger and better appointed single-family houses will also benefit sales for both flat and other fabricated glass products. Gains will be restricted, however, by the slowing of the overall economy as the ongoing US expansion ages, and by maturity in some key applications.

The best prospects for growth in the fabricated glass industry are expected in glass kitchenware and tableware, and lighting, automotive and electronic glassware. Energy-efficient glass types, such as insulating and laminated, will see the fastest growth among fabricated flat glass products.