NAICS 327910 Quarterly Industry Report
Abrasive Product Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 327910Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 327910 integrates data from the U.S. Census Bureau[6] economic profiles, Bureau of Labor Statistics[7] employment surveys, and SBA size standard publications[8]. Our research team analyzes product segment trends and end-market demand patterns to provide valuation context specific to abrasive manufacturing operations. Updated quarterly, each data point is sourced to its originating federal or institutional database.
Industry Snapshot
Key metrics for the abrasive product manufacturing industry.
Industry Definition & Overview
Abrasive Product Manufacturing (NAICS 327910) encompasses establishments primarily engaged in manufacturing abrasive grinding wheels, abrasive-coated products, and other abrasive items from natural or synthetic materials. Products include bonded abrasive wheels and segments, coated abrasive belts and discs, loose abrasive grains and powders, diamond dressing wheels, and superabrasive products made with cubic boron nitride or industrial diamond.
These manufacturers serve metalworking, woodworking, construction, automotive, aerospace, and electronics industries. Bonded abrasives, which embed abrasive grains in vitrified, resinoid, or metal bond matrices, account for the largest product segment. Coated abrasives apply grains to paper, cloth, or fiber backings for sanding and finishing applications. According to the U.S. Census Bureau[5], this classification covers all abrasive product manufacturing regardless of the abrasive mineral type or bond system used.
The industry includes both large multinational corporations with global distribution and smaller specialty producers serving niche applications. Raw material inputs include aluminum oxide, silicon carbide, zirconia alumina, ceramic grain, industrial diamond, and cubic boron nitride. Product performance requirements vary dramatically across end uses, from rough grinding of steel castings to precision finishing of semiconductor wafers. This range supports market segmentation and specialty pricing for high-performance products. Safety standards from ANSI and OSHA govern wheel speed ratings, guard requirements, and operator training, adding compliance costs but reinforcing quality barriers for manufacturers.
What's Included in This Industry
- Bonded abrasive grinding wheel manufacturing
- Coated abrasive belt, disc, and sheet production
- Diamond grinding wheel and saw blade manufacturing
- Superabrasive product manufacturing (CBN and diamond)
- Loose abrasive grain and powder processing
- Abrasive cutoff wheel and segment production
- Sandpaper and emery cloth manufacturing
- Honing stone and sharpening stone production
- Abrasive flap wheel and mounted point manufacturing
- Nonwoven abrasive pad and wheel production
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Nonmetallic Mineral Product Manufacturing | 327 |
| Industry Group | Other Nonmetallic Mineral Product Manufacturing | 3279 |
| NAICS Industry | Abrasive Product Manufacturing | 32791 |
| National Industry | Abrasive Product Manufacturing | 327910 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 327999 | All Other Miscellaneous Nonmetallic Mineral Product Manufacturing | Other miscellaneous nonmetallic mineral product manufacturing shares the same industry group and processes similar mineral raw materials for industrial applications |
| 327993 | Mineral Wool Manufacturing | Mineral wool manufacturing falls within the same other nonmetallic mineral products group and processes mineral fibers for insulation rather than abrasive applications |
| 327992 | Ground or Treated Mineral and Earth Manufacturing | Ground or treated mineral and earth manufacturing processes nonmetallic minerals into industrial powders and granules using similar size reduction equipment |
| 332312 | Fabricated Structural Metal Manufacturing | Fabricated structural metal manufacturing consumes abrasive products for cutting, grinding, and finishing metal components during fabrication processes |
| 333517 | Machine Tool Manufacturing | Machine tool manufacturing produces grinding machines and finishing equipment that use bonded and coated abrasive products as consumable tooling |
| 423520 | Coal and Other Mineral and Ore Merchant Wholesalers | Coal and other mineral and ore merchant wholesalers distribute abrasive mineral raw materials including aluminum oxide and silicon carbide to manufacturers |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Ohio | 12.2% | 29 |
| 2 | Michigan | 11.8% | 28 |
| 3 | New York | 10.1% | 24 |
| 4 | Illinois | 10.1% | 24 |
| 5 | California | 8.9% | 21 |
| 6 | Pennsylvania | 7.2% | 17 |
| 7 | Texas | 5.9% | 14 |
| 8 | Massachusetts | 5.5% | 13 |
| 9 | Wisconsin | 3.0% | 7 |
| 10 | New Jersey | 3.0% | 7 |
% Of Establishments
0%
12%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
16
Total SBA Loans
$1.7M
Total Loan Volume
$105K
Average Loan Size
10 yrs
Average Loan Term
10.25%
Average Interest Rate
40
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[8] classifies Abrasive Product Manufacturing under NAICS 327910 with a size standard of 900 employees. This threshold accommodates the mix of large multinational producers and smaller specialty manufacturers in the industry. Many abrasive product companies operate with fewer than 200 workers, making them eligible for SBA lending programs[9] and federal small business contracting preferences. Capital equipment for abrasive manufacturing, including kilns, presses, and coating lines, represents a substantial investment for smaller firms. Eligible businesses can access SBA 7(a) loans[10] for working capital, equipment, and acquisition financing, while 504 loans[11] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 8 | $1.2M | $150K |
| 2 | Northeast Bank | 8 | $480K | $60K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 327910?
NAICS 327910 covers manufacturers of bonded abrasive grinding wheels, coated abrasive belts and discs, diamond and superabrasive tools, loose abrasive grains, sharpening stones, and nonwoven abrasive products. These range from large multinational corporations producing broad product lines to small specialty firms focused on specific abrasive types or end-market applications. Per the U.S. Census Bureau[6], the classification covers all abrasive product types regardless of mineral or bond system.
How is NAICS 327910 structured within the classification hierarchy?
NAICS 327910 falls within Industry Group 3279 (Other Nonmetallic Mineral Product Manufacturing), Subsector 327 (Nonmetallic Mineral Product Manufacturing), and Sector 31-33 (Manufacturing). It shares Industry Group 3279 with codes for cut stone (327991), ground minerals (327992), mineral wool (327993), and miscellaneous nonmetallic products (327999).
What is the SBA size standard for NAICS 327910?
The SBA[8] sets the size standard for Abrasive Product Manufacturing at 900 employees. Businesses with fewer than 900 employees qualify as small businesses for federal contracting set-asides and SBA-guaranteed financing programs.
What NAICS codes are most closely related to 327910?
Within the same industry group, codes 327991 (cut stone), 327992 (ground minerals), 327993 (mineral wool), and 327999 (miscellaneous nonmetallic products) share mineral processing characteristics. Machine tool manufacturing (333517) produces equipment that consumes abrasive products. Per the Census Bureau NAICS structure[5], the distinguishing factor is the abrasive function of the finished product.
What industries have the strongest connections to abrasive product manufacturing?
Metalworking industries including forging (332111), die-casting (331523), and structural metal fabrication (332312) are major consumers. Machine tool manufacturing (333517) and power tool manufacturing (333991) produce equipment that uses abrasive consumables. Construction material wholesalers (423390) distribute abrasive products to the building trades.
What specific activities are included in NAICS 327910?
Activities include manufacturing bonded grinding wheels, coated abrasive belts and discs, diamond and CBN wheels, loose abrasive grains, sandpaper, honing stones, abrasive cutoff wheels, flap wheels, mounted points, and nonwoven abrasive pads. The code covers products made from natural minerals like garnet and emery as well as synthetic abrasives such as aluminum oxide and silicon carbide. Per NAICS reference materials, all abrasive product forms and mineral types fall under this single code.
Can abrasive product manufacturers access SBA loans?
Yes. Abrasive product manufacturers with fewer than 900 employees qualify for SBA loan programs[9] including 7(a) loans for working capital and equipment, 504 loans for kilns, presses, and real estate, and microloans for smaller capital needs. These programs help manufacturers invest in coating lines, bonding equipment, and quality testing systems.
Where is abrasive product manufacturing concentrated in the United States?
Production facilities cluster in the industrial Midwest and Northeast, near major metalworking and manufacturing centers. States such as Ohio, Massachusetts, New York, Pennsylvania, and Connecticut have historical concentrations of abrasive producers. Proximity to steel mills, automotive plants, and aerospace manufacturers influences plant location decisions because many abrasive products are consumed in high volumes by these industries.
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]U.S. Census Bureau data.census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA size standard publications sba.gov
- [9]SBA lending programs sba.gov
- [10]SBA 7(a) loans sba.gov
- [11]504 loans sba.gov
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