NIST GCR 04-863
Composites Manufacturing Technologies: Applications in Automotive, Petroleum, and Civil Infrastructure Industries
Economic Study of a Cluster of ATP-Funded Projects

Abstract

Composite materials are strong, lightweight, and corrosion resistant, as well as expensive to manufacture and not widely used in large scale industrial applications. In 1994, the Advanced Technology Program undertook a program focused on composites manufacturing in order to trigger the creation of high-performance manufacturing infrastructure for commercial composite parts. From 1994 to 2000, ATP invested $43 million, along with industry partners who invested $39 million, in 22 high-risk projects.

To assess the economic and societal benefits from ATP-funded projects for composites manufacturing, a cluster-study approach was used to combine the methodological advantages of detailed case studies and higher-level overview studies. Five projects were selected for analysis, spanning automotive, offshore oil production, and civil infrastructure applications. Within the cluster of five projects, two projects with the best near-term prospects for commercial deployment were selected for detailed case studies.

Based on primary research and analysis, the cluster study estimates exceptional returns on ATP’ s investment in five composites manufacturing projects:

• Benefit-to-cost ratios on ATP’s investment ranging from 83:1 to 92:1.
• Net present value of ATP’s investment ranging from $892 to $994 million.
• Public rates of return on ATP’s investment ranging from 44 to 46 percent.

These measures reflect the estimated benefits to industry users and the general public relative to the ATP investment. Estimated benefits to direct recipients of ATP funding are excluded.

Research performed for this study indicates that ATP’s industry partners would not have developed high-risk, low-cost composites manufacturing technologies without ATP support and without ATP facilitation of broad-based industrial joint ventures. The study concludes that the above benefits are directly attributable to ATP’s investment.

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Date created: July 14, 2004
Last updated: August 3, 2005

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