SIC 2677 Envelopes
SIC 2677
This category includes establishments primarily engaged in manufacturing envelopes of any description from purchased paper and paperboard. Establishments primarily engaged in manufacturing stationery are classified in SIC 2678: Stationery, Tablets, and Related Products.
322232
Envelope Manufacturing
The envelope category is classified as a converting operation, since it transforms a finished product (rolls and sheets of paper and paperboard or synthetic materials) into envelopes. According to the Envelope Manufacturers Association, U.S. manufacturers produced 194.5 billion envelopes in 2006, valued at $3.68 billion. These figures represent a steady, yet modest, decline in envelope usage, as the value of envelope shipments totaled $3.77 billion in 2000 and $3.42 billion in 2004.
Approximately 228 envelope manufacturers operated in the United States in 2005, according to the U.S. Census Bureau. These establishments employed more than 19,400 workers. Most manufacturers were concentrated in California, which served as headquarters for 30 establishments; New York came in second, with 17 manufacturers; and Illinois and Texas tied for third, with 16 establishments each.
The envelope industry is obviously a major consumer of paper. Envelope converters utilize paper and paperboard in their manufacturing processes, primarily uncoated freesheet and kraft paper; recovered paper is increasingly consumed by the industry, as recycling technology and popularity increase. Mailing and in-house envelopes, which use adhesive seals, metal clasps, or string-and-button closures, are another important segment of the industry, as are heavy-duty padded shipping envelopes and mailers.
The chief threat to the envelope industry is alternative means of transmitting information, from such media as the Internet, fax machines, voice mail message systems, electronic mail, and other electronic communications systems. Despite these threats, some industry observers point out that new technologies rarely eliminate "old" technologies; they simply move them into new applications. Just as television did not eliminate radio broadcasts, electronic communications are not likely to completely eliminate the use of "old-fashioned" mail.
Envelope manufacturing is widely distributed throughout the United States and basically involves folding, gluing, and printing on high-speed converting equipment. There are many companies involved in envelope manufacturing, including numerous small producers. As in other industries though, the envelope industry is consolidating as larger, more efficient producers buy up smaller entities or force them out of business.
While paper envelopes have traditionally been made from 100 percent virgin fiber, many converters have reacted to public demand for more environmentally friendly products by introducing standard business and specialty envelope products that contain varying amounts of recycled materials. Since the products themselves can be recycled, they hold an advantage over newer plastic and olefin envelopes. In fact, some municipal collection programs collect "junk mail," giving paper-based envelopes an environmental bonus. Most paper envelopes are made from uncoated freesheet, one of the largest grades produced by U.S. paper mills.
While standard business and commercial stationery envelopes account for the majority of envelopes produced in the United States, specialty envelopes...
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