Slippery slope: As economic growth and industrial production increase, industry revenue will rise

The Lubricant Oil Manufacturing industry primarily produces petroleum-based lubricant and grease products such as blended motor oils, brake fluids and lubricating grease, inseparably linking demand to the volatile prices of crude oil. Following the recession, oil prices increased; however, constrained exports of crude oil in the United States limited producers' ability to seek the highest available price for their output. Lubricant production slowed during the five-year period to 2018, and industry operators took on the financial burden. For most of the five-year period, revenue fell as lubricant production increased to account for falling oil prices...purchase to read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 13-18
-3.0%
Forecast Growth 18-23
Profit
Employment
15,332
Businesses
401

Industry Threats & Opportunities

  • Revenue fell as lubricant production increased to account for falling oil prices
  • Due to solid demand and favorable crude oil prices, profit margins remained stable
  • Sustained interest in recycled oil and synthetic products will also benefit the industry
  • Industry Report - Industry Analysis Chapter

    The Lubricant Oil Manufacturing industry produces petroleum-based lubricant and grease products, such as blended motor oils, brake fluids, transmission fluids and lubricating machinery grease. The industry is heavily dependent on crude oil prices. Typically, higher crude oil prices push revenue upward as refiners pass along costs to distributors, therefore, when crude oil prices fall dramatically, revenue is also affected. Despite strong growth in 2013, largely due to the belief that oil prices would continue growing after two years of double-digit gains, slow production volume growth and volatile crude oil prices resulted in sharp revenue declines. These declines mirror those of the crude oil production market, which blossomed over similar years only to crash in later years...purchase to read more.

    Additional Insights for the Lubricant Oil Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lubricant Oil Manufacturing Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Guaranteed supply of key inputs
  • Involvement of all stakeholders
  • IBISWorld analysts also discuss how external factors such as Average age of vehicle fleet and Trade-weighted index in the Lubricant Oil Manufacturing industry impact industry performance..

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    What's in this report

    What is the Lubricant Oil Manufacturing Industry?

    Operators in this industry manufacture petroleum products (except for asphalt-paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating grease and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.

    Industry Products
  • Automotive lubricants
  • Industrial lubricants
  • Industry Activities
  • Manufacturing lubricating oils and greases made from refined petroleum
  • Manufacturing brake fluids made from refined petroleum
  • Manufacturing petroleum jelly made from refined petroleum
  • Manufacturing petroleum waxes made from refined petroleum
  • Re-refining used petroleum lubricating oils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average age of vehicle fleet
  • Trade-weighted index
  • World price of crude oil
  • Per capita disposable income
  • Number of motor vehicle registrations

  • Current Performance
  • Domestic crude discount disappears
  • Profitability remains stable
  • Specialization increases
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing preferences
  • Operational environment
  • Trade increases
  • Table: Lubricant Oil Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Lubricant Oil Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing
  • Auto Parts Stores
  • Local Freight Trucking
  • Long-Distance Freight Trucking

  • Key Selling Industries
  • Animal Food Production
  • Inorganic Chemical Manufacturing
  • Metal Can & Container Manufacturing
  • Oil Drilling & Gas Extraction
  • Petrochemical Manufacturing
  • Plastic Film, Sheet & Bag Manufacturing

  • Products & Services
  • Industrial lubricants
  • Automotive lubricants
  • Other
  • Chart: Lubricant Oil Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Other
  • Retailers
  • Chart: Major Market Segmentation for the Lubricant Oil Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Lubricant Oil Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lubricant Oil Manufacturing Industry

  • Industry Globalization
    Royal Dutch Shell PLC, Exxon Mobil Corp., BP PLC, Valvoline Inc.,
  • Table: Royal Dutch Shell PLC - financial performance
  • Table: Exxon Mobil Corp. - financial performance
  • Table: BP PLC - financial performance
  • Table: Valvoline Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lubricant Oil Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Lubricant Oil Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Grease
  • A thick oil used to lubricate machinery.
  • Lubricant
  • A substance, such as grease or oil, that reduces friction when applied as a surface coating to moving parts.
  • Synthetic Oil
  • A substance created in the laboratory with crude oil products that has similar properties to conventional lubricant oil.
  • What Our Customers Say

    Why buy this report?

    The Lubricant Oil Manufacturing Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Lubricant Oil Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Lubricant Oil Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Lubricant Oil Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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