Resin, Rubber & Fiber Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,100 firms in the US manufacture resin and plastic materials, synthetic rubber, artificial and synthetic fibers, and filaments. The industry supplies distributors and a broad range of manufacturers, including producers of apparel, footwear, tires and auto parts, containers and packaging, plastic wrap, paints and coatings, elastic cord, latex gloves, insulative materials, vinyl windows and siding, hoses, and home furnishings.
Dependence on the Manufacturing Sector
The manufacturing sector drives demand for resin, plastic, rubber, and fiber materials.
Consumer Demand for Natural Alternatives
Consumer awareness of the health and environmental impact of synthetic resins, plastics, rubber and fibers is driving demand for safer and biodegradable products.
Industry size & Structure
A typical firm operates out of a single location, employs 88 workers, and generates about $103 million annually.
- The resin, rubber and fiber manufacturing industry consists of about 1,100 companies which employ about 97,000 workers and generate about $113 billion annually.
- Most companies are small, independent operators - about 76% have a single location and 42% employ less than 20 workers.
- The industry is concentrated with the 20 largest firms accounting for 60% of industry revenue.
- Large companies include DuPont, Dow, Firestone Polymers, LyondellBasell, and divisions of petroleum-producing companies like Chevron Phillips Chemical, and ExxonMobil.
Industry Forecast
Resin, Rubber & Fiber Manufacturers Industry Growth
Recent Developments
Oct 21, 2024 - Rubber From Sunflowers
- Researchers at Edison Agrosciences are working to develop and commercialize natural rubber made from sunflowers, according to Rubber World. Amid rising demand, the US lacks a domestic source of natural rubber. Moreover, the global supply is currently sourced from a disease-susceptible tree species that’s grown primarily in South and East Asia, which is vulnerable to tropical deforestation. The ample US sunflower crop has the potential to produce over 25,000 tons of natural rubber annually. However, the current concentration of rubber in sunflowers is too low for economical extraction. Edison Agrosciences recently closed on a $600,000 seed financing round to support its efforts to increase rubber concentration in each sunflower plant, thereby improving the per-acre yield. The funding will be used to advance R&D, increase production capabilities for customer product evaluation, and further develop the supply chain infrastructure to bring the technology to market.
- Producer prices for resin, rubber, and fiber manufacturers rose 2% in July compared to a year ago after tumbling 13.2% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by the industry fell 2.4% year over year in July, while average wages at chemical manufacturers rose 1.9% in August to $30.73 per hour, $0.20 shy of their peak in December, BLS data show. Sales for basic chemicals, resins, and synthetics companies have followed a downward trend since peaking in the second quarter of 2022, Census Bureau data shows. Looking ahead, sales for the US resin and plastic manufacturers industry are forecast to grow at a 2.34% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, according to the Interindustry Economic Research Fund.
- The post-pandemic boom in the US manufacturing sector – a demand driver for resin, plastic, rubber, and fiber materials – is losing momentum, The Wall Street Journal reported in July. Falling sales and orders and swelling inventories are causing manufacturers to lay off workers and cut production. Among the US manufacturers scaling back due to slumping demand, WSJ cited farm machinery giant Deere & Co., which has laid off about 2,100 production workers since November, or 15% of its hourly workforce, as unsold farm machinery piles up on dealer lots. Higher interest rates and operating costs, as well as a strengthening US dollar and lower selling prices for commodities, are dampening activity at factories across the US. Makers of durable goods such as cars, crop-harvesting combines, and washing machines are projecting challenging business conditions for the remainder of the year, WSJ reports.
- Under a new EPA rule to reduce the risk of cancer for people living near industrial sites, over 200 US chemical plants will be required to curb their emissions, The New York Times reports. The rule specifically targets ethylene oxide, a chemical that’s used to sterilize medical devices, and chloroprene, which is used in the manufacturing of rubber in footwear. EPA has classified both chemicals as likely carcinogens. Most of the facilities impacted by the new EPA rule are in Texas, Louisiana, and elsewhere along the Gulf Coast, as well as in the Ohio River Valley and West Virginia, according to NYT. EPA Administrator Michael Regan said the new rule will cut toxic pollutants by 6,200 tons annually and reduce emissions of ethylene oxide and chloroprene by 80%. Under the rule, chemical manufacturers must monitor vents and storage tanks for ethylene oxide and chloroprene emissions and plug any leaks.
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