AM-94-48 CHANGING SHAPE OF THE U.S. LUBE ADDITIVES BUSINESS

Description:

The early part of the 1990s has been difficult for both the additive consumers and suppliers-specifically, the increasingly competitive business environment that threatens the existence of some suppliers. This paper considers aspects of lubricant additive supplier ownership, “captive” business, and concentration on packages or components, all as ways to describe the industry. With the backdrop of flat lubricant demand in the United States, the key success factors are discussed. The important role that understanding the changing regulatory environment plays is examined, along with the importance of research and development investment decisions. The balance of activity inside and outside of the United States is also highlighted. All of these issues will play a role in determining which suppliers will meet their demise, which will merely survive the threat, and which will succeed in the face of it.