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 8,000 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.

Volatile Raw Materials Costs

Conventional plastic is a petroleum and natural gas byproduct and cost of plastic or resin is influenced by variability in the price of oil.

Industry size & Structure

A typical plastic products manufacturer employs about 73-74 workers and generates about $26 million annually.

    • The plastic products manufacturing industry consists of 7,800 companies that employ 576,000 workers, and generates $201 billion annually. Most companies are small to medium sized businesses.
    • 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 Plastics, Pactiv Corporation, and Graham Packaging.
                                Industry Forecast
                                Plastic Products Manufacturers Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 25, 2022 - Diesel Price Premium
                                • Manufacturing companies are facing a potential shortage of diesel fuel that has driven up the price to a record premium over gasoline and crude oil, according to The Wall Street Journal. While the price of gasoline is up about 14% so far this year, the price for diesel has risen by about 50%, to $5.35 a gallon, according to energy price data from AAA/OPIS. The gains widened the gap between the two fuels to an all-time high of $1.61, versus 23 cents a year ago. Dwindling stocks, the war in Ukraine, severe weather, and other disruptions to the global energy markets are behind the widening gap, WSJ reported in November 2022. Wholesale diesel, delivered into New York harbor, traded at a record premium to crude oil in October, according to the Energy Information Administration, which also reported the country had only 25 days of diesel in reserve, the lowest since 2008.
                                • Chevron Phillips Chemical Co. and QatarEnergy in November 2022 announced they are beginning construction of an $8.5 billion integrated polymers facility in Orange, Texas. When operational, the plant will produce polyethylene, the most common plastic, for production of goods from coolers, to water or gas pipes and packaging, Reuters reported. Polyethylene is also used in packaging for food and medical supplies. The project is targeting to have approximately 25% lower greenhouse gas emissions than similar facilities in the United States and Europe, according to a press release announcing the project.
                                • Growing demand for alternatives to single-use plastics is favoring products made from bioplastics, which are produced from renewable biomass sources. The restaurant and airline industries are responding by increasingly turning to disposable cutlery made from sustainable materials, according to a new report from Future Market Insights (FMI). Over the 2022-2031 forecast period, the disposable cutlery market is projected to increase at a CAGR of 4%, from $1.6 billion in 2022 to $ 2.4 billion by 2031. High and growing consumption of food items outside of the home has intensified the demand for reliable disposable cutlery products, according to FMI’s report.
                                • Environmental groups are objecting to a labeling change that says polypropylene plastic (PP) can be marketed as “widely recyclable,” The Wall Street Journal reported. PP packaging is widely used for yogurt and other food containers. The labeling program, How2Recycle, founded by plastics makers and consumer products companies, said in July that PP containers could now be marketed as “widely recyclable” because data showed that more than 60% of consumers in the US — the threshold required under federal rules to make the claim — are now allowed to put PP tubs, bottles, jugs and jars in their recycling bins, according to WSJ. Opponents say simply measuring what’s eligible to be collected is not the same as actual recycling and that consumer access figures to recycling are less than half of what the industry states. EPA data shows PP packaging had a US recycling rate of 2.7% in 2018.
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