NAICS 324191 Quarterly Industry Report
Petroleum Lubricating Oil and Grease Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 324191Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 324191 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the petroleum lubricating oil and grease manufacturing sector, drawing on data from the U.S. Census Bureau[5] and U.S. Energy Information Administration[8] petroleum product data. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 324191 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the petroleum lubricating oil and grease manufacturing industry.
Industry Definition & Overview
Petroleum Lubricating Oil and Grease Manufacturing (NAICS 324191) encompasses establishments primarily engaged in blending or compounding refined petroleum to make lubricating oils and greases, and re-refining used petroleum lubricating oils. Products include automotive motor oils, industrial lubricants, hydraulic fluids, gear oils, metalworking fluids, greases, and specialty lubricants formulated for specific equipment and operating conditions. According to the U.S. Census Bureau[5], the industry generates annual revenues exceeding $20 billion through approximately 400 establishments employing over 15,000 workers across blending, packaging, and distribution operations.
Automotive motor oil represents the largest product category by volume, while industrial lubricants, metalworking fluids, and specialty greases serve manufacturing, mining, transportation, and energy production sectors. The Bureau of Labor Statistics[6] reports production roles including blending technicians formulating lubricant products to API and OEM specifications, quality laboratory analysts testing viscosity, additive levels, and performance characteristics, packaging line operators filling containers from bulk blending tanks, and warehouse workers managing finished goods inventory.
Extended oil drain intervals and improved engine technology have reduced per-vehicle lubricant consumption, creating competitive pressure for volume-dependent blenders. Per the SBA Office of Advocacy[7], the industry includes large integrated oil company brands, major independent lubricant companies, and numerous smaller regional blenders serving local industrial accounts, fleet customers, and quick-lube service chains with private label and branded lubricant products.
What's Included in This Industry
- Valuation multiples benchmarked to lubricant blending and grease manufacturing operations
- Revenue and EBITDA trends for domestic lubricating oil and grease producers
- SBA lending data and financing terms for NAICS 324191
- Comparable transaction data from recent lubricant company acquisitions and mergers
- Industry risk factors including base oil pricing and extended drain interval trends
- Workforce composition and labor cost benchmarks for lubricant blending operations
- Regional market analysis covering lubricant production and distribution markets
- Capital expenditure benchmarks for blending, packaging, and laboratory equipment
- Growth projections tied to industrial production, vehicle fleet growth, and specialty lubricant demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Petroleum and Coal Products Manufacturing | 324 |
| Industry Group | Petroleum and Coal Products Manufacturing | 3241 |
| NAICS Industry | Other Petroleum and Coal Products Manufacturing | 32419 |
| National Industry | Petroleum Lubricating Oil and Grease Manufacturing | 324191 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 324110 | Petroleum Refineries | Petroleum refineries producing Group I, II, and III base oil stocks that lubricant blenders purchase as the primary ingredient for finished lubricant formulations |
| 325998 | All Other Miscellaneous Chemical Product and Preparation Manufacturing | Miscellaneous chemical product manufacturers producing synthetic lubricant base stocks and specialty chemical additives consumed in advanced lubricant formulations |
| 424720 | Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) | Petroleum product merchant wholesalers distributing finished lubricants and greases from blending plants to automotive, industrial, and commercial end-user customers |
| 811191 | Automotive Oil Change and Lubrication Shops | Automotive oil change and lubrication service shops representing the primary retail channel for consumer motor oil products sold through quick-lube service networks |
| 332439 | Other Metal Container Manufacturing | Other metal container manufacturers producing steel pails, drums, and packaging containers used for bulk and intermediate lubricant product distribution |
| 333132 | Oil and Gas Field Machinery and Equipment Manufacturing | Oil and gas field machinery manufacturing establishments requiring specialty lubricants formulated for extreme pressure and high-temperature drilling applications |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 18.6% | 49 |
| 2 | Ohio | 8.0% | 21 |
| 3 | California | 7.6% | 20 |
| 4 | Illinois | 7.2% | 19 |
| 5 | Indiana | 6.1% | 16 |
| 6 | Pennsylvania | 6.1% | 16 |
| 7 | Michigan | 5.3% | 14 |
| 8 | Louisiana | 5.3% | 14 |
| 9 | Missouri | 4.9% | 13 |
| 10 | New Jersey | 4.2% | 11 |
% Of Establishments
0%
19%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$400K
Total Loan Volume
$50K
Average Loan Size
10 yrs
Average Loan Term
14.00%
Average Interest Rate
32
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Petroleum lubricant blenders seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 324191, which set the threshold at 900 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for business acquisitions, blending equipment upgrades, and working capital for base oil and additive inventory. Industry CDC/504 loan program[12] offers long-term fixed-rate financing for blending plant modernization, packaging line automation, and laboratory equipment investments. Lenders evaluate product mix diversification, customer concentration, and base oil supply agreements when underwriting lubricant blending and grease manufacturing transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a lubricant blending company?
Lubricant blenders typically trade at 5x to 8x EBITDA, with premium valuations for companies with branded product lines, diversified automotive and industrial customer bases, and proprietary formulations. Per U.S. Census Bureau[5] data, blenders with strong private label relationships and recurring industrial accounts command higher multiples than commodity motor oil repackagers.
What SBA loan options are available for lubricant manufacturers?
The SBA 7(a) loan program[11] provides up to $5 million for acquisitions and blending equipment, while the CDC/504 program[12] finances plant modernization and packaging line automation. Market 900-employee small business threshold for NAICS 324191 allows many independent blending operations to qualify for SBA lending programs.
How do base oil prices affect lubricant blender profitability?
Base oil represents 60 to 75 percent of finished lubricant product costs, making base stock pricing the primary margin driver for blending operations. Per U.S. Energy Information Administration[8] petroleum data, base oil prices track crude oil markets with some lag, requiring blenders to manage raw material exposure through supply contracts and customer pricing adjustment mechanisms.
How are extended drain intervals affecting lubricant demand?
Modern engine technology and improved lubricant formulations have extended recommended oil change intervals, reducing per-vehicle consumption despite growing vehicle populations. Per Bureau of Labor Statistics[6] industry data, this trend creates volume pressure for motor oil blenders, driving industry focus toward premium synthetic products with higher margins and specialty industrial lubricants.
What growth opportunities exist in lubricant manufacturing?
Synthetic lubricants, specialty industrial formulations, food-grade lubricants, and biodegradable products represent the primary growth segments. Per U.S. Census Bureau[5] product shipment data, the shift from conventional to synthetic motor oil products has increased average selling prices and margins for blenders investing in advanced formulation capabilities.
What is the SBA size standard for lubricant manufacturers?
The SBA[10] classifies businesses with up to 900 employees as small for NAICS 324191 petroleum lubricating oil and grease manufacturing. This higher threshold reflects the capital-intensive blending and packaging infrastructure required for competitive lubricant manufacturing operations.
What environmental regulations apply to lubricant blending operations?
Lubricant blenders must comply with EPA[13] regulations governing petroleum product storage, spill prevention, and waste management including used oil collection and re-refining. Storm water management, underground storage tank compliance, and hazardous waste handling for additive chemicals represent the primary environmental regulatory requirements.
What are key acquisition factors for lubricant blending businesses?
Critical factors include blending capacity and flexibility, product formulation library, customer concentration, brand equity, and base oil supply arrangements. Per U.S. Census Bureau[5] industry data, acquirers evaluate the balance between automotive and industrial revenue streams, private label versus branded products, and geographic distribution capabilities.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]U.S. Energy Information Administration eia.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]EPA epa.gov
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