Market dynamics have created the right opportunity for Arglass

CONSOLIDATION

Due to market consolidation, there are currently 43 glass container manufacturing facilities in the United States, down from over 120 plants in the early 80’s.

The three largest players own 37 of the 43 plants and control, as measured by the number of units sold, over 90% of the U.S. glass container market.

FOCUS ON UTILIZATION

As the number of plants declined and demand remained flat, capacity utilization in the remaining facilities has increased over time from ~75% to ~95%. 

Incumbents have filled their plants with products that allow for long-run productions (i.e: beer), focusing on utilization above all else, leaving customer needs such as emergency batches, shorter runs and customized products, unattended.  

 

GROWING imports

As a result, customers with diverse product portfolios, along with the specialty and smaller-volume beverage and food producers, have to rely on imports, suffering from poor customer service and limited options for their glass container supply.

Since 2009, imports of glass containers have been increasing at an 8% CAGR, with Chinese imports growing at an even higher rate. However, imports are not the ideal supply source, as they present logistic, quality control and customer service issues.

 

As the first new glass plant in America in over a generation, Arglass is born to serve those customers whose needs for flexibility, efficiency and customization are not being met by legacy US manufacturers or foreign glass suppliers.