ILMA Compoundings - April 2020 - 28

manufacturing-eligible population manufactures over 40%
of the total North American industrial segment lubricants,
with the share of the MWF market exceeding 70%.
In terms of sales revenues, IHS Markit estimates that the
market for lubricants in North America was approximately
$23.5 billion in 2018. Of this, ILMA manufacturing-eligible companies captured $6.7 billion, or 28%, of the North
American lubricants revenues. The bulk was from sales
in the U.S., which amounted to $5.8 billion. ILMA sales
activity in Canada and Mexico was $482 million and $382
million, respectively.
THE ILMA SECTOR STIMULATED $14.4 BILLION IN
TOTAL SALES ACTIVITY AND $7.2 BILLION IN GDP
The ILMA Sector realized over $6.7 billion of sales activity
in North America in 2018. Of this, almost $1.4 billion was
in the MWF segment.
The overall direct sales activity stimulated follow-on (combined indirect and induced) sales of $7.7 billion, yielding
a multiplier of 1.2. This means for every dollar realized by
the ILMA Sector, another $1.20 of sales activity occurred
throughout the North American economy. For the MWF
segment, the corresponding figures were almost $1.7 billion
of follow-on sales yielding a multiplier of 1.2.
MWFs are predominantly used by companies in four
manufacturing sectors: primary metals, fabricated metals,
machinery and transportation equipment. In 2018, these
sectors accounted for more than $948.1 billion, or 4.0%,
of North American GDP. Thus, MWFs played a supporting
role in generating 4.0% of North American GDP.
THE ILMA SECTOR HELPED SUPPORT OVER 26,300
JOBS THAT PAID $2.6 BILLION IN LABOR INCOME
IHS Markit estimates that the ILMA Sector directly
employed approximately 4,262 North American workers in
2018. The indirect and induced activity supported another
22,038 jobs. This means that for every job in the ILMA Sector, another five jobs are supported across North America.
In 2018, the average employee compensation across the
direct, indirect and induced workers ultimately supported by
ILMA Sector companies' activities was $101,030 per worker,
about 26% higher than the North American average.
THE ILMA SECTOR IS PARTICULARLY IMPORTANT TO
THE MWF INDUSTRY
A core constituency of the ILMA membership serves the
MWF segment of the lubricants market. MWFs are used
to reduce heat and friction and to remove metal particles
during industrial machining and grinding operations.
IHS Markit estimates that ILMA manufacturing-eligible
companies sold approximately $1.4 billion of MWFs in
North America during 2018, helped generate over $3 billion

28

APRIL 2020

| COMPOUNDINGS | ILMA.ORG

of sales activity and supported more than 4,100 jobs across
North America in 2018.
While the MWF market segment accounts for a very
small piece of the North American economy, a significant
amount of North American industrial output is dependent
upon the use of MWFs across a wide range of manufacturing processes. IHS Markit analyzed the contributions
the four manufacturing segments that MWFs are primarily
used in - primary metals, fabricated metals, machinery
and transportation equipment - make to North American
GDP, and IHS Markit determined that they collectively
account for about $948.2 billion of GDP. This represents
about 4.0% of North American GDP. So, though the MWF
market segment is small, it plays a vital supporting role in
about 4.0% of the North American economy.
THE ILMA SECTOR IS AN IMPORTANT CONTRIBUTOR
TO THE NORTH AMERICAN ECONOMY
With $6.7 billion in direct sales and over 4,000 direct
employees, the ILMA Sector plays an important role in the
North American economy. In addition to these calculable
impacts, the products produced by the ILMA Sector are
vital to the efficient operation of many key sectors across
the economy.

Summary of the ILMA Sector's economic
contributions to the North American economy,
2018 (millions of USD and number of workers)
Sales
Activity
United States $12,915.1

Contribution Labor
to GDP
Income

Employment

$6,521.5

$2,447.9 22,824

Canada $865.3

$416.5

$145.9

1,797

Mexico $618.4

$271.9

$63.4

1,680

North America $14,398.8 $7,209.9
of which:

$2657.2

26,301

Direct $6,653.5

$3,399.0

$1,006.5

4,262

Indirect $6,225.1

$2,963.6

$1,213.4

14,599

Induced $1,520.3

$847.3

$437.3

7,439

Source: IHS Markit

©2020 IHS Markit

The complete report is available at www.ilma.org under the
Membership/Member Resources tab.

Flanagan is director - economics and country risk, Eskew is vice
president - oil markets, midstream, downstream and chemicals, and
Norton is senior principal - economics and country risk, all at IHS Markit.


http://www.ilma.org http://www.ILMA.ORG

ILMA Compoundings - April 2020

Table of Contents for the Digital Edition of ILMA Compoundings - April 2020

ILMA Compoundings - April 2020 - Cover1
ILMA Compoundings - April 2020 - Cover2
ILMA Compoundings - April 2020 - 1
ILMA Compoundings - April 2020 - 2
ILMA Compoundings - April 2020 - 3
ILMA Compoundings - April 2020 - 4
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