Glass Melting Technology: A Technical and Economic ... - OSTI

scientific glassware, glass tubing, and other technical and industrial glassware. When viewed as a
single segment, specialty glass, tracked by the US Census Bureau as “consumer, scientific,
technical, and industrial glassware,” is the largest dollar value segment in US consumer and
industrial markets.
Total factory shipments of specialty glassware amounted to $5.2 billion in 2001, a 13.1 percent
decrease from the $5.9 billion reported in the year 2000. Within the specialty glass business,
some sub-segments have been affected by the slowdown in the US economy or increasingly
threatened by imports, while others with niche markets have been less affected by economic and
competitive forces.
Consumer-related glassware grew at an annual compound rate of only 0.4 percent over the last
five years, while lighting and electronic glassware declined at an annual rate of 5.4 percent for
the same period. Consumer glassware (table, kitchen, art and novelty) declined 9.5 percent in
value from $2,031.5 million in 2000 to $1,838.1 million in 2001; lighting and electronic
glassware decreased 20.9 percent from 2000 to 2001. (Census Industrial Report, August 2002)
Imported glassware has affected sales in the US specialty glassware market. Imports account for
more than 40 percent of apparent consumption; exports are only 10 to 11 percent of
manufacturers’ shipments of consumer glassware. In the lamp chimney, bowl, and globe subsegment
and in the CRT blanks and parts, imports are an important factor.
The US fiber optics business experienced a sharp decline from 2000 to 2001 with a severe drop
in global demand and reductions in capital spending by the telecommunications companies.
Foreign competition has also increased in the fiber optics industry.
The decline in sales of TV tubes and blanks reflects changes in trade with Mexico and the
decision of some manufacturers to move production outside the US. The decline also reflects a
sluggish US economy and changing demand for consumer television products. For the long-term
trend of the two major sub-segments of the specialty glass segment, see Table II.9 that describes
US Value of Shipments for the last two decades of the 20 th century.
Year Table, kitchen, art, and
novelty glassware
($ millions)
Table II.9. US Value of Glass Shipments
Lighting and electronic glassware
($ millions)
1981 1149.8 810.0
1986 1277.6 953.3
1991 1433.6 1187.1
1996 1805.4 1620.3
2001 1838.1 1226.5
II.7. Economics of glass melting
Capital productivity has been one of the most significant issues in the US glass industry in recent
years. As a process business, glassmaking is capital intensive, as measured by the capital
investment needed to generate $1 of annual sales. New glass plants generate less than $1 of
annual sales per capital investment dollar.
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