SIC 3052 Rubber and Plastics Hose and Belting
SIC 3052
This category covers establishments primarily engaged in manufacturing rubber and plastics hose and belting, including garden hoses. Establishments primarily engaged in manufacturing rubber tubing are classified in SIC 3061: Molded, Extruded, and Lathe-Cut Mechanical Rubber Goods and SIC 3069: Fabricated Rubber Products, Not Elsewhere Classified. Those companies manufacturing plastics tubing are classified in SIC 3082: Unsupported Plastics Profile Shapes. Those establishments manufacturing flexible metallic hoses are classified in SIC 3599: Industrial and Commercial Machinery and Equipment, Not Elsewhere Classified.
326220
Rubber and Plastics Hoses and Belting Manufacturing
In the mid-2000s, approximately 185 companies made hoses and belting in the United States. The industry shipped $4.3 billion worth of goods and spent $2.32 billion on materials in 2005. Manufacturing companies range from a myriad of small shops filling niche markets all the way up to several firms producing broad product lines with sales approaching or exceeding $1 billion a year.
Hose and belting products find usage in a wide variety of industries. Hoses are used in such varied markets as automobiles, construction, and oil and gas. Transmission belting is used to help power cars, industrial machinery, agricultural equipment, household appliances, and construction equipment. Flat belting, commonly known as conveyor belting, finds usage from traditional markets such as mining and material handling as well as in lighter-weight applications such as food handling and airline luggage conveyor systems.
Economies of scale are difficult to achieve except for some of the larger firms because a large number of products need short runs, and many of the lines have differences in chemical compounds and machinery needs. States with the greatest volume of hose and belt production in the mid-2000s included California, Ohio, and North Carolina.
Rubber remains the predominant material in the market, accounting for between 70 and 80 percent of the products. For example, rubber is the main material for hoses, except in garden hoses, where plastic takes the majority of the share. Other materials, though, are expected to make some inroads as higher-performing products are needed.
Much of the structure of the hose and belting industry is organized around how the product gets to its end user—either in the original equipment (OE) or replacement market. In the automotive sector, the OE market is fairly straightforward as most of the products are sold directly to the automakers.
Sales to the aftermarket, though, are a bit more complicated, going through either a three-step or two-step distribution process. In the three-step process, the manufacturer sells his hose or belting to a wholesale distributor that handles automotive parts lines. The distributor in turn sells the product to what is known as a jobber, an example of which would include the NAPA store chain. The final step is for the jobber to sell the hose and belting to the installer—the repair shop that does work on automobiles, for example. Some manufacturers have increasingly tried to shorten the process by skipping the initial step and selling directly to the jobber.
Historically, this has been the most efficient way to get to market, ensuring that there is plenty of inventory in the aftermarket so that people can get the necessary parts for their car at almost any time. Hose and belt manufacturers, however, have had to shift with the times as auto repair and service shops have evolved. While the total number of outlets for repair service has remained virtually unchanged, the makeup has changed considerably.
The number of full-service gas stations that provide service and repair has declined significantly due to the increasing domination of the market by self-serve, pay-at-the-pump stations, but the number of repair-only...
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