Document MdR7MkNJ95evL7p2g8qzRY3y

Market Structure (continued) Manufacturers of friction produots fabricate looee fibers or buy theae products from the primary manufacturer. The friotion product is then fabricated and generally sold direotly to an automotive manufacturer or through automotive ohannela, however, consumers oan easily purchase friction produots. The majority of coating and sealant manufacturers are composed of several small firms who either sell through-the-vholesale/retall channels or sell in large quantities to major firms with a vide distribution area. The plastlo molding material is typioally compounded from loose fibers by relatively large firms. The molding material is either used internally or sold to various small speolalty molding firms. The finished molded plastlo produots are widely used by the oonsumer and are sold to original equipment manufacturers. Trends The U.S. asbestos usage is apparently increasing at a rate equalling economic growth. An annual growth rate of 1 tq 38 1* predicted by the Bureau of Mines for the remainder of the oentury. Significant fluctuations in asbestos use, related to oonstruotlon aotivity, are expected to oontlnue in the future. Continued asbestos utilisation is affected by three major factors. First, asbestos has unique properties and any efforts to substitute other materials for asbestos have generally resulted in a cost penalty. Second, the oost of asbestos has in creased over the past several years with no break expected in the future.. Finally, stringent pressure to limit the hazards associated with asbestos use has been plaoed upon the industry. These pressures have brought about an inoreaee in the oost of asbestos oausing firms to eliminate asbestos usage in their produots. Alternative materials to asbestos in friotion produots were found to be impractical from both a oost and performance point of view. Many of the asbestos related ooating and sealant products intended for the con sumer market are being reformulated. However, products intended for use by pro fessionals have not been reformulated due to the more severe performance demands placed on these produots. Asbestos usage as a reinforcement in molded plastlos has diminished considerably over the past, two years.- This reduction is attributed to the availability of asbestos, increased oost, demanding OHSA controls, and deletion of asbestos from industrial wort area* and produots. The selective removal of asbestos as a product constituent appears to be the future trend in produots where asbestos is not oritioal to produot acceptance and where asbestos is considered to be hazardous. However, produots, in vhioh there is difficulty in duplicating the attributes of asbestos and for vhioh there are no economically feasible alternatives, oontlnue to be produced. 8008 1403 PRODUCED BY FORD