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

investment of the traditional glass business discourages investors who are interested in rapid
sales growth with limited capital resources. Because of the need for large capital investment for
new plant construction and furnace rebuilds, glass manufacturers have increasingly sought ways
to maximize production from existing furnaces. The need for additional production capacity and
must be carefully balanced with market demand.
The glass industry is weakened by its fragmentation into the four product segments—flat,
container, fiber (textile and insulation), and specialty glasses. This fragmentation hampers
standardization and discourages collaboration that would empower the industry through
economies of scale and increased bargaining power.
Innovations in technology that could enhance the glass manufacturing economy will be driven by
the need for capital productivity, greater energy efficiency, and environmental regulation.
Previous developments in glass melting technology have evolved from the 19 th century Siemens
furnace technology, rather than through the risky development of revolutionary glassmaking
processes. The current challenges to glass manufacturing now require innovative thinking and
planning if the industry is to be revitalized.
Overall, the industry maintains a steady cash flow, but capital expenses minimize the financial
attractiveness of most segments of the industry. The glass container business has experienced an
upsurge in the last three years as it has become more dependent on applications for alcoholic
beverages, yet it will continue to face the threat of substitution by plastics and aluminum for
certain popular beverages. Flat glass sales are affected by the overall economy via other markets,
particularly automotive and construction, and can decline during recession periods. The overall
trend in flat glass sales has remained positive over the past 25 years.
Tons / Yr.
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
U.S. Flat Glass Industry
Tons
'000's Sq. Ft.
0
0
1975 1980 1985 1990 1995 2000 2005
Figure II.1 Trend in Flat Glass Sales for 25 Years
46
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Sq. Ft.