Asahi Glass - Competitors

Asahi Glass Competition

Now Viewing Asahi Glass's competition in: Glass and Fiber Optic Manufacturing (primary)

Recent Developments

Major Sources of Demand Decline - Rising gas prices and a sour housing market are causing demand problems for glass manufacturers. New research from CIBC World Markets predicts that the number of US cars will drop 10 million by 2012, with fewer new cars being sold; and the National Association of Realtors (NAR) predicts another bad year for US housing starts in 2008, with starts off 27.2 percent compared to 2007. For glass manufacturers, slowing auto sales and housing starts will mean lower demand for new windows and auto glass. NAR predicts a slight housing start recovery in 2009.

Spending Binge in Texas Showdown - A showdown is brewing in Texas between fiber optic providers AT&T and Verizon, which are spending nearly $30 billion combined to expand fiber optic services to suburban residences, with a focus on the mega-suburbs of Dallas/Fort Worth. The expansion and competition stands to benefit fiber optic manufacturers, which will supply the equipment and cable. Some industry experts suggest that Verizon's aggressive competitive stance could lead to similar market penetrations elsewhere in the US, if the Dallas project is successful.

US Economy Impacting Auto Glass Manufacturers - US economic woes are lowering production numbers, raising fuel surcharges, and contributing to the sale of one manufacturer's auto glass unit. PPG Industries recently began adding a fuel surcharge for auto glass products, and is selling its auto glass division after an unsuccessful attempt last year. Asahi Glass Company, headquartered in Japan, will decrease production at its US manufacturing plants due to weak auto sales.

Competitive Landscape

Demand comes 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. The industry is capital-intensive: annual revenue per worker is close to $200,000.

Full Industry Overview For Glass and Fiber Optic Manufacturing

Glass and Fiber Optic Manufacturing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US glass products and containers, an indicator for glass makers, is forecast to grow at an annual compounded rate of 4.6 percent between 2007 and 2012.

Glass Products and Containers Growth Uneven

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.