SIC 3692 Primary Batteries, Dry and Wet

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• AMERICA AND THE WORLD.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 3692

This industry covers establishments primarily engaged in manufacturing primary batteries, dry or wet.

NAICS CODE(S)

335912

Dry and Wet Primary Battery Manufacturing

INDUSTRY SNAPSHOT

After suffering through the doldrums of the economic recession in the early 2000s, by the mid-2000s demand for primary (disposable, nonrechargeable) batteries was once again healthy because of the ever-expanding use of portable electronic products. Longer-lasting alkaline batteries, introduced in the 1980s, retained 68 percent of the U.S. retail (household) market. Although sales of standard alkaline batteries were growing, the sector faced increasing competition from the rechargeable segment, where significant strides in research and development had been made. Given their relative convenience and low initial cost, however, disposable batteries were expected to remain dominant in the household sector.

In 2003 the primary battery industry employed 8,418 people, compared to 10,178 in 2000. Production workers in 2003 numbered 6,480; they earned an average hourly income of $16.95.

ORGANIZATION AND STRUCTURE

Duracell (which became a division of Gillette in 1996), Energizer, and and Rayovac are considered the "Big Three" of disposable batteries, representing about 90 percent of U.S. sales. The total value of shipments in this industry was reported at $2.77 billion in 2003. Both Duracell and Eveready are powerful players in the European and other international markets.

BACKGROUND AND DEVELOPMENT

Around the start of the nineteenth century, the first battery was constructed by Alessandro Volta. The Leclanch cell, developed by the French engineer Georges Leclanch in 1866, immediately became a commercial success in large sizes because its component materials were easily available. Until fairly recently, however, the major use for primary batteries in the home was in flashlights. The strong growth in primary battery sales began to accelerate in the 1950s, with expanding demand for transistor radios. The continuing introduction of new electronic products—including pagers, hand-held video games, cellular phones, and portable CD players—and the increasing desire for portability has fueled the growth in sales for primary batteries. Zinc chloride batteries, which are similar to Leclanch cells but produce more energy, were dominant in the U.S. market in the 1970s and the early 1980s, when longer-lasting alkalines began to overtake them. Alkalines now represent the dominant share of the U.S. consumer battery market.

Other important primary batteries include silver oxide-zinc cells, which are used in watches, hearing aids, and cameras. Lithium cells have attracted the most research in recent years; they are particularly suited for such applications as personal paging systems, heart pacers, and automated cameras.

Despite new developments in rechargeable batteries in the late 1990s and early 2000s, throwaways did not become obsolete, or even lose their dominant position in many consumer markets. Most consumers still preferred the convenience of throwaways, even if they can ultimately save a few dollars by consistently using rechargeables.

Some of the supposed environmental benefits of rechargeables also were open to question, since primary batteries, while numerous, represented less than 1 percent of all municipal solid waste. Battery makers have been making additional efforts to cut their waste products. Panasonic, for example, designed new packaging for its batteries that was made of high-density polyethylene and was therefore recyclable through 6,000 service centers nationwide.

The top three battery companies battle fiercely...