TABLE 20 REASONS WHY WET FRICTION MATERIALS ARE MORE DURABLE THAN DRY FRICTION PRODUCTS Sintered Metal TABLE 21 REASONS WHY SINTERED
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1 INTRODUCTION... XVII STUDY GOALS AND OBJECTIVES... XVII REASONS FOR DOING THE STUDY... XVII CONTRIBUTIONS OF THE STUDY AND FOR WHOM... XVII SCOPE AND FORMAT... XVII METHODOLOGY... XVIII AUTHOR S CREDENTIALS... XIX RELATED BCC PUBLICATIONS... XIX BCC ONLINE SERVICES... XX SUMMARY... XXI SUMMARY TABLE FRICTION PRODUCTS AND MATERIALS OUTLOOK, THROUGH 2008 ($ MILLIONS)... XXIII SUMMARY FIGURE FRICTION PRODUCTS AND MATERIALS OUTLOOK, ($ MILLIONS)... XXIV TECHNOLOGICAL, ECONOMIC AND REGULATORY ENVIRONMENT... 1 OVERVIEW... 1 HISTORY... 1 TABLE 1 REASONS WHY THE FRICTION MATERIALS INDUSTRY SHOWED LITTLE CHANGE BEFORE THE MID 1960s... 2 TABLE 2 REASONS WHY THE FRICTION MATERIALS INDUSTRY CHANGED IN THE MID 1960s... 3 WHAT IS A FRICTION MATERIAL?... 4 THE SCIENCE OF FRICTION... 5 TEMPERATURE VARIATION OF THE FRICTIONAL COEFFICIENT... 6 TESTING... 7 PRODUCTION OF FRICTION MATERIALS... 7 SOFT BATCH... 7 MOLDING... 8 TRUCK BLOCK... 8 CURING... 8 BONDING... 8 INTEGRALLY MOLDED BRAKES... 9 BRAKE INGREDIENTS... 9 FIBERS IN COMPOSITES... 9 THE EMPHASIS ON REDUCING COSTS EMERGING TECHNOLOGIES REGULATORY CONSIDERATIONS HEALTH EFFECTS OF ASBESTOS Health Effects of Asbestos (Continued) HISTORY OF ASBESTOS LEGISLATION TABLE 3 PRODUCTS THAT CANNOT CONTAIN ASBESTOS AFTER TABLE 4 LIST OF PRODUCTS THAT CAN STILL CONTAIN ASBESTOS THE USE OF ASBESTOS IN MATERIALS... 17
2 THE FRICTION MATERIALS STANDARDS INSTITUTE (FMSI) REGULATIONS DEALING WITH THE ENVIRONMENT Regulations Dealing With the Environment (Continued) REGULATIONS CONCERNING THE TRANSPORTATION INDUSTRIES Increased Calls for Regulation of the Automotive Aftermarket The Threat of Litigation Formation of the Brake Manufacturers Council ASBESTOS LITIGATION AND LIABILITY Asbestos Litigation and Liability (Continued) FRICTION MATERIALS TABLE 5 GLOBAL FRICTION MATERIALS MARKET, THROUGH 2008 * ($ MILLIONS) TABLE 6 GLOBAL FRICTION MATERIALS REQUIREMENTS, THROUGH 2008 * (MILLION POUNDS) FRICTION PRODUCTS CONSTRUCTION DRY FRICTION PRODUCTS TABLE 7 COMPARISON OF THE FOUR TYPES OF DRY FRICTION PRODUCTS NAO Friction Products TABLE 8 COMPOSITION OF A TYPICAL NON-ASBESTOS ORGANIC FRICTION MATERIAL TABLE 9 COMPARISON OF FIBERS USED IN NAO BRAKE PADS TABLE 9 (CONTINUED) TABLE 10 ADVANTAGES AND DISADVANTAGES OF NAO BRAKE PADS AND BLOCKS Semi-Metallic Friction Products TABLE 11 TYPICAL INGREDIENTS IN A SEMI-METALLIC BRAKE PAD TABLE 12 DIFFERENCES BETWEEN ORDINARY SEMI-METALLIC PADS AND HEAVY DUTY SEMI-METALLIC PADS TABLE 13 ADVANTAGES AND DISADVANTAGES OF SEMI-METALLIC FRICTION PRODUCTS COMPARED WITH NAO FRICTION PRODUCTS Low-Metallic Products TABLE 14 TYPICAL INGREDIENTS IN A LOW METALLIC BRAKE PAD TABLE 15 ADVANTAGES AND DISADVANTAGES OF LOW METALLIC FRICTION PRODUCTS Friction Modifiers TABLE 16 TYPES OF MATERIALS USED FOR FRICTION MODIFIERS Resins WET FRICTION PRODUCTS TABLE 17 REASONS WHY THE WET PAPER FRICTION PRODUCTS MARKET SHOULD NOT INCREASE SIGNIFICANTLY Paper Friction TABLE 18 COMMONLY USED RAW MATERIALS IN PAPER-BASED FRICTION PRODUCTS TABLE 19 ADVANTAGES AND DISADVANTAGES OF WET PAPER FRICTION MATERIALS COMPARED WITH DRY FRICTION PRODUCTS... 40
3 TABLE 20 REASONS WHY WET FRICTION MATERIALS ARE MORE DURABLE THAN DRY FRICTION PRODUCTS Sintered Metal TABLE 21 REASONS WHY SINTERED METAL FRICTION PRODUCTS ARE NOT USED IN TRUCK BRAKING APPLICATIONS ARAMID FIBERS TABLE 22 ADVANTAGES AND DISADVANTAGES OF ARAMID FIBER IN FRICTION PRODUCTS TABLE 23 REASONS AGAINST USING ADDITIONAL ARAMID FIBER IN FRICTION MATERIALS TABLE 24 GLOBAL OUTLOOK FOR ARAMID FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) GLASS FIBERS TABLE 25 ADVANTAGES AND DISADVANTAGES OF E-GLASS IN FRICTION PRODUCTS TABLE 26 DISADVANTAGES OF THE SMOOTHNESS OF E-GLASS FIBERS TABLE 27 GLOBAL OUTLOOK FOR GLASS FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (MILLION POUNDS) METAL FIBERS TABLE 28 GLOBAL OUTLOOK FOR METAL FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) CARBON FIBERS TABLE 29 ADVANTAGES AND DISADVANTAGES OF CARBON-CARBON COMPOSITES TABLE 30 GLOBAL OUTLOOK FOR CARBON FIBERS IN CARBON-CARBON FRICTION PRODUCTS, THROUGH 2008 (THOUSAND POUNDS) OTHER ADVANCED FIBERS METAL MATRIX COMPOSITE FIBERS TABLE 31 GLOBAL OUTLOOK FOR METAL MATRIX COMPOSITE (MMC) FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (THOUSAND POUNDS) PARTIALLY OXIDIZED POLYACRYLONITRILE FIBERS TABLE 32 GLOBAL OUTLOOK FOR PARTIALLY OXIDIZED POLYACRYLONITRILE FIBERS IN CARBON-CARBON FRICTION PRODUCTS, THROUGH 2008 (THOUSAND OF POUNDS) OTHER ADVANCED FIBERS TABLE 33 GLOBAL OUTLOOK FOR OTHER ADVANCED FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (THOUSANDS OF POUNDS) Carbon-Silicon Carbide Miscellaneous Advanced Fibers ASBESTOS FIBERS TABLE 34 PROPERTIES OF ASBESTOS FIBERS TABLE 35 COMPOSITION OF A TYPICAL ASBESTOS-BASED FRICTION MATERIAL TABLE 36 ADVANTAGES AND DISADVANTAGES OF ASBESTOS-BASED FRICTION MATERIALS TABLE 37 GLOBAL OUTLOOK FOR ASBESTOS FIBERS IN FRICTION PRODUCTS, THROUGH 2008 (MILLION POUNDS) PHENOLIC RESINS TABLE 38 ADVANTAGES AND DISADVANTAGES OF PHENOLIC RESIN PHENOLIC RESINS (CONTINUED)... 64
4 TABLE 39 GLOBAL OUTLOOK FOR PHENOLIC RESINS IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) GRAPHITE TABLE 40 GLOBAL OUTLOOK FOR GRAPHITE IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) WOLLASTONITE TABLE 41 GLOBAL OUTLOOK FOR WOLLASTONITE IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) OTHER MATERIALS TABLE 42 GLOBAL OUTLOOK FOR OTHER MATERIALS IN FRICTION PRODUCTS, THROUGH 2008 * (MILLION POUNDS) OTHER MATERIALS (CONTINUED) FRICTION PRODUCTS AND MARKETS OVERVIEW TABLE 43 GLOBAL FRICTION PRODUCT MARKETS, THROUGH 2008 (MILLION DOLLARS) TABLE 44 FRICTION PRODUCTS APPLICATION MARKETS, THROUGH 2008 (MILLIONS OF DOLLARS) TRUCK DRY FRICTION PRODUCTS TABLE 45 REGIONAL OUTLOOK FOR COMMERICIAL VEHICLES, THROUGH 2008 (MILLIONS OF VEHICLES) Friction Product Selection FRICTION MATERIALS TABLE 46 APPLICATIONS OF FRICTION MATERIALS USED IN TRUCKS FIGURE 1 AVERAGE PRICES FOR THE THREE GRADES OF FRICTION MATERIALS IN STANDARD APPLICATIONS FIGURE 2 MARKET SHARES OF THE THREE GRADES OF FRICTION MATERIALS, 2003 (%) Safety Considerations Brake Block vs. Lining Jacob s Brake CLUTCH FACINGS MEDIUM TRUCK BRAKES TABLE 47 PROBLEMS WITH AVAILABLE FRICTION MATERIALS IN MEDIUM TRUCK DRUM BRAKES FIGURE 3 MEDIUM TRUCK BRAKES MARKET SHARE BY TYPE, 2003 (%) TABLE 48 FRICTION MATERIALS USED IN MEDIUM TRUCK APPLICATIONS HEAVY DUTY TRUCKS Aramid Brakes versus Other Brakes OUTLOOK TABLE 49 GLOBAL OUTLOOK FOR DRY FRICTION MATERIALS IN MEDIUM AND HEAVY-DUTY TRUCKS, THROUGH 2008 (MILLIONS OF POUNDS) SUPPLIERS Foundation Brakes FIGURE 4 MARKET SHARES OF NORTH AMERICAN TRAILER AXLE PRODUCERS, Medium Trucks... 88
5 FIGURE 5 MARKET SHARES OF MAJOR FRICTION PRODUCT SUPPLIERS TO THE NORTH AMERICAN OEM MEDIUM TRUCK MARKET, 2003 (%) FIGURE 6 MARKET SHARES OF MAJOR FRICTION PRODUCT SUPPLIERS TO THE NORTH AMERICAN MEDIUM TRUCK AFTERMARKET, 2003 (%) Large Trucks FIGURE 7 MAJOR DRUM BRAKE PRODUCERS FOR THE NORTH AMERICAN LARGE TRUCK MARKET, 2003 (%) FIGURE 8 NORTH AMERICAN FRICTION PRODUCT SUPPLIERS TO LARGE TRUCK DRUM BRAKE AFTERMARKET, 2003 (%) AUTOMOTIVE DRY FRICTION PRODUCTS A BRIEF HISTORY OF FRICTION PRODUCTS IN AUTOMOBILES TABLE 50 FACTORS NECESSITATING IMPROVEMENT IN AUTOMOBILE BRAKES TABLE 51 AUTOMOBILE BUYERS REQUIREMENTS FOR BRAKES DYNAMICS OF AUTOMOTIVE BRAKING Market Forces Affecting Longevity of Brake Pads Noise in Brake Pads TABLE 52 REASONS THAT BRAKE PADS CAUSE NOISE TYPES OF BRAKES TABLE 53 COMPARISON OF DISK VERSUS DRUM BRAKES Disk Brakes TABLE 54 DISTRIBUTION OF BRAKING FORCE IN AUTOMOBILES Drum Brakes Automotive Brake Outlook TABLE 55 REGIONAL OUTLOOK FOR LIGHT VEHICLES, THROUGH 2008 (MILLIONS OF VEHICLES) TABLE 56 LIGHT VEHICLE OEM DRY FRICTION MATERIAL OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS) THE AUTOMOTIVE AFTERMARKET IN BRAKE PADS Aftermarket Brake Use Patterns TABLE 57 EXPECTED LIFETIME DISTANCES OF VARIOUS TYPES OF FRICTION MATERIALS Aftermarket Materials Selection Aftermarket Brake Outlook TABLE 58 LIGHT VEHICLE DRY FRICTION AFTERMARKET OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS) AUTOMOTIVE BRAKE SUPPLIERS Automotive OE Brakes FIGURE 9 NORTH AMERICAN SUPPLIER SHARES OF ORIGINAL EQUIPMENT FRICTION MATERIALS TO LIGHT VEHICLE MANUFACTURERS, 2003 (%) FIGURE 9 (CONTINUED) Automotive Aftermarket Brakes TABLE 59 DIFFERENCES BETWEEN THE AUTOMOTIVE AFTERMARKET AND OE FRICTION MANUFACTURERS TABLE 59 (CONTINUED) AVIATION/AEROSPACE DRY FRICTION TABLE 60 AVIATION/AEROSPACE FRICTION MATERIALS OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS)
6 Aviation/Aerospace Dry Friction (Continued) INDUSTRIAL DRY FRICTION TABLE 61 INDUSTRIAL DRY FRICTION MATERIAL OUTLOOK, THROUGH 2008 (MILLION DOLLARS) RAILWAY OIL WELLS CONSTRUCTION MACHINERY APPLIANCES INDUSTRIAL MACHINERY WET FRICTION AUTOMOTIVE WET FRICTION TABLE 62 FRICTION MATERIAL COMPONENTS IN AUTOMATIC TRANSMISSIONS TABLE 63 AUTOMOTIVE WET FRICTION MATERIAL OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS) FIGURE 10 NORTH AMERICAN SUPPLIER SHARES OF AUTOMATIC TRANSMISSION WET PAPER FRICTION PRODUCTS FOR LIGHT VEHICLES, 2003 (%) CONSTRUCTION WET FRICTION TABLE 64 CONSTRUCTION WET FRICTION MATERIAL OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS) FIGURE 11 NORTH AMERICAN SUPPLIER SHARES OF AUTOMATIC TRANSMISSION WET PAPER FRICTION PRODUCT FOR CONSTRUCTION EQUIPMENT, 2003 (%) OTHER WET FRICTION TABLE 65 COMPARISON OF MANUAL AND AUTOMATIC TRUCK TRANSMISSIONS TABLE 66 OTHER WET FRICTION MATERIAL OUTLOOK, THROUGH 2008 (MILLIONS OF DOLLARS) FIGURE 12 NORTH AMERICAN SUPPLIER SHARES OF CLUTCH BUTTONS, 2003 (%) FIGURE 12 (CONTINUED) FIGURE 13 NORTH AMERICAN SUPPLIER SHARES OF MEDIUM TRUCK TRANSMISSIONS, 2003 (%) AUTOMOTIVE CLUTCHES Automotive Clutches (Continued) TABLE 67 ADVANTAGES AND DISADVANTAGES OF NEW VERSUS REBUILT CLUTCHES IN THE AFTERMARKET INTERNATIONAL MARKETS OVERVIEW TABLE 68 REGIONAL OUTLOOK FOR FRICTION MATERIALS IN FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF POUNDS) TABLE 69 REGIONAL OUTLOOK FOR FRICTION PRODUCTS, THROUGH 2008 (MILLIONS OF DOLLARS) NORTH AMERICA WESTERN EUROPE TABLE 70 ADVANCES IN BRAKING SYSTEMS MADE POPULAR IN EUROPE TABLE 71 DIFFERENCES BETWEEN THE NORTH AMERICAN AND EUROPEAN MARKETS
7 WESTERN EUROPE (CONTINUED) JAPAN REST OF THE WORLD REST OF THE WORLD (CONTINUED) FRICTION PRODUCTS AND MATERIALS INDUSTRY STRUCTURE OVERVIEW INDUSTRY HISTORICAL DEVELOPMENT TABLE 72 FRICTION MATERIALS/PRODUCTS VALUE CHAIN, THROUGH 2008 (MILLIONS OF DOLLARS) TABLE 73 STRATEGIC ANALYSIS OF THE NORTH AMERICAN FRICTION MATERIALS MARKET INNOVATION AND RESEARCH AND DEVELOPMENT TECHNOLOGICAL STRATEGIES RESEARCH AND DEVELOPMENT FUNDING FUTURE TRENDS IN RESEARCH AND DEVELOPMENT MANUFACTURING STRATEGIES SCALE ECONOMIES AND VERTICAL INTEGRATION LABOR COST STRUCTURE FINANCIAL PERFORMANCE MARKETING PRICING AND BARGAINING POWER MARKET SEGMENTATION DIFFERENTIATION STRATEGIES RELATIONS WITH OEM CUSTOMERS GLOBAL MARKETING DISTRIBUTION OTHER MARKETING OTHER CONSIDERATIONS TYPES OF COMPANIES CONCENTRATION CONSOLIDATION Consolidation (Continued) COMPANY PROFILES ABS FRICTION CORPORATION ACORDIS BV ADVANCED FRICTION TECHNOLOGY ADVANCED GLASSFIBER YARNS, LLC ADVICS CO. LTD AIRCRAFT BRAKING SYSTEMS CORPORATION AKEBONO BRAKE INDUSTRY COMPANY LIMITED Akebono Brake Industry Company Limited (Continued) AKZO NOBEL NV
8 ALL FRICTIONS COMPANY ALLISON TRANSMISSION ALTO PRODUCTS CORPORATION AMERICAN METAL FIBERS INC ANSTRO MANUFACTURING, INC APTEC REIBTECHNIK GMBH ARVINMERITOR INC AVS BRAKE LININGS PVT LIMITED AUSCO PRODUCTS INC BENDIX COMMERCIAL VEHICLE SYSTEMS LLC BIC AUTO PRIVATE LIMITED BIC Auto Private Limited (Continued) BORGWARNER INC ROBERT BOSCH GMBH BRAKE PRO, LTD BREMBO GROUP Brembo Group (Continued) BREMSKERL REIBBELAGWERKE EMMERLING GMBH & CO. KG CAPITAL TOOL AND DESIGN LIMITED CARDOLITE CORPORATION CARLISLE COMPANIES INCORPORATED THE CARLYLE JOHNSON MACHINE COMPANY, LLC CECO FRICTION PRODUCTS, INC CERTAINTEED CORPORATION CHACO PRODUCTS LTD CHAMPION FRICTION COMPANY CLEVELAND OAK, INC THE CLINE COMPANY CO-EFF FRICTION BANDS LTD CONI-SEAL, INC CONTINENTAL AG DANA CORPORATION Dana Corporation (Continued) DELPHI CORPORATION E. I. DUPONT DE NEMOURS AND COMPANY E. I. dupont de Nemours and Company (Continued) DYNOTHERM (PTY) LIMITED EATON CORPORATION ENGINEERING PLASTICS, INC FANGTIAN INDUSTRIES CO., LTD FEDERAL-MOGUL CORPORATION FENNER PRECISION PRODUCTS FORMSPRAG CLUTCH
9 FUJIAN GUANLEAN AUTOMOTIVE PARTS INDUSTRY CO., LTD GENERAL METALS POWDER COMPANY GKN PLC GKN Plc (Continued) GLOBAL MATERIAL TECHNOLOGIES, INC GOODRICH CORPORATION GRAPHITE SALES, INC GREAT LAKES FRICTION PRODUCTS, INC Great Lakes Friction Products, Inc. (Continued) GUMMI USA, INC HALDEX AB HEMISPHERES INTERNATIONAL MANUFACTURING COMPANY HEXCEL CORPORATION HINDUSTAN COMPOSITES LIMITED HITCO CARBON COMPOSITES, INC HOLLINGSWORTH & VOSE COMPANY HONEYWELL INTERNATIONAL, INC Honeywell International, Inc. (Continued) Honeywell International, Inc. (Continued) Honeywell International, Inc. (Continued) HYPER-THERM, INC Hyper-Therm, Inc. (Continued) Hyper-Therm, Inc. (Continued) Hyper-Therm, Inc. (Continued) HYUPRIP MACHINERY CO., LTD INDUSTRIAL BRAKE & SUPPLY INDUSTRIAL CLUTCH PARTS LIMITED INTERNATIONAL BRAKE INDUSTRIES, INC JAPAN BRAKE INDUSTRIAL CO., LTD KALE BALATA A.S KNORR-BREMSE AG Knorr-Bremse AG (Continued) KOREA BERAL LOGAN CLUTCH CORPORATION MACH III CLUTCH, INCORPORATED MATERIALS SCIENCES CORPORATION MERIDIAN LABORATORY MESSIER-BUGATTI Messier-Bugatti (Continued) MIBA AG Miba AG (Continued) MIDWEST BRAKE
10 MORSE AUTOMOTIVE CORPORATION NAN HOANG TRAFFIC INSTRUMENT CO., LTD NINGBO XIANGSHENG FRICTION MATERIAL CO., LTD NISSHINBO INDUSTRIES, INC Nisshinbo Industries, Inc. (Continued) NUCAP INDUSTRIES INC ORTLINGHAUS-WERKE GMBH OWENS CORNING PERFORMANCE FRICTION CORPORATION PHOENIX FRICTION PRODUCTS, INC PMAUTOMOTIVE, INC POWER TRANSMISSION TECHNOLOGY, INC PPG INDUSTRIES, INC RAYBESTOS PRODUCTS COMPANY RAYTECH CORPORATION Raytech Corporation (Continued) THE ROWLAND COMPANY S & E INDUSTRIAL ADHESIVES CORPORATION SB SANGSIN BRAKE SCAN-PAC MANUFACTURING, INC SEPAC, INC SGL CARBON AG STANDCO INDUSTRIES INC TARONI & C. S.A.S TEIJIN LIMITED Teijin Limited (Continued) THERMOSET, INC TMD FRICTION BETEILIGUNGS GMBH & CO KG TOKAI CARBON CO., LTD TRIBCO INCORPORATED TRW AUTOMOTIVE INC TRW Automotive Inc. (Continued) UNIFRAX CORPORATION Unifrax Corporation (Continued) UNIVERSAL AUTOMOTIVE INDUSTRIES, INC UTIL INDUSTRIES, SPA VESRAH COMPANY, INC WABTEC CORPORATION WELLMAN PRODUCTS GROUP WESTROCK COMPANY WHEELING BRAKE BLOCK MANUFACTURING CO., INC WINNARD LTD ZOLTEK COMPANIES, INC
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