Plastic Products 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 7,300 plastic product manufacturers in the US process plastic materials and produce parts and finished goods for a variety of end uses. Product categories include packaging material; fabricated shapes and plates; polystyrene foam products; urethane and other foam products; bottles; plumbing fixtures; and resilient floor coverings.
Cyclical Demand
Because plastic products are commonly used in a wide variety of industries and goods, economic conditions can affect demand.
Volatile Raw Materials Costs
Conventional plastic is a petroleum and natural gas byproduct and the cost of plastic or resin is affected by variability in the price of crude oil.
Industry size & Structure
A typical plastic products manufacturer employs about 83 workers and generates about $31.2 million annually.
- The plastic products manufacturing industry consists of 7,300 companies, employs 603,000 workers, and generates over $228 billion annually.
- The industry is fairly fragmented, with the 50 largest firms representing just 32% of industry revenue.
- Primary end-use markets include packaging, consumer and institutional, and building and construction. Other markets include transportation, electrical and electronics, furniture and furnishings, and industrial machinery.
- Individual companies may specialize according to end-use, process, or material. Many companies may act as suppliers to OEMs, such as auto or aircraft manufacturers.
- Large companies include Berry Global, Pactiv Evergreen Corp., and Graham Packaging.
Industry Forecast
Plastic Products Manufacturers Industry Growth
Recent Developments
Sep 27, 2024 - Wages Rising Amid Falling Sales and Prices
- Shipments and inventories of plastics and rubber products fell in June compared to a year ago by 1.3% and 2.5%, respectively, amid declining industry sales, according to the latest US Bureau of Labor Statistics data. Meanwhile, producer prices for plastic products manufacturers remained flat in July, up just 0.43% year over year. Industry employment dipped 1.6% YoY. Despite weakness in demand, average wages at plastic products manufacturers rose by 1.6% over the same period to a new high of $24.28 per hour, BLS data show.
- California has sued Exxon Mobil, accusing the company of misleading consumers about the recyclability of plastic products and polluting the state, The Wall Street Journal reported in September. The lawsuit alleges that Exxon violated California’s nuisance laws, as well as laws prohibiting state water pollution, false advertising, and unfair competition. The lawsuit was brought by California’s Attorney General Rob Bonta, who alleged Exxon Mobil continues to deceive the public in ad campaigns that claim recycling can fix “the plastics pollution crisis.” Bonta said Exxon for decades “falsely promoted” that all plastic is recyclable, and that 92% of plastic waste Exxon processes through its advanced recycling technology doesn’t become recycled plastic, WSJ reports. The AG said the state is looking into the actions of other as yet unnamed fossil-fuel companies and is seeking civil damages that could reach billions of dollars.
- The deadline in the US Plastics Pact – an agreement in which companies committed to reaching recycling targets by 2025 – has been pushed back to 2030, The Wall Street Journal reports. Signed in 2020 by dozens of producers representing a third of plastic packaging in the US – including Coca-Cola, Nestle, and other big food and beverage brands and retailers – the pact is a roadmap for transforming packaging and supply chains across industries by eliminating plastic packaging waste and transitioning to a circular economy. Goals included phasing out plastic straws and cutlery and intentionally-added PFAS, recycling or composting half of their plastic packaging, and making sure 100% of plastic packaging would be reusable, recyclable, or compostable by 2025. Now with the 2025 deadline looming, the pact has published an updated set of objectives similar to the 2020 goals but with many of the target dates extended to 2030, according to WSJ.
- The numerous changes to state packaging laws taking effect this year will impact makers of plastic products, Packaging Dive reports. Legislative changes in about a dozen states include bottle bill expansions, new recycled content requirements, and bans on plastic grocery bags and PFAS in food packaging. California’s expanded bottle bill affects plastic beverage containers, including “difficult to recycle” wine packaging, including boxes, bladders, pouches, and similar plastic containers for a 25-cent refund. The state expanded the application of the California Beverage Container Recycling and Litter Reduction Act to any size container of 100% fruit juice and any size container of vegetable juice. Bans on single-use plastic bags provided by retailers take effect in Colorado and Rhode Island. Food packaging containing PFAS is prohibited in Hawaii, Maryland, Minnesota, and Washington. Illinois allowed restaurants or retailers to fill or refill consumer-owned containers with ready-made or bulk food as of Jan. 1.
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