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
May 27, 2024 - Price Increases Slow Amid Falling Sales
- Producer prices for plastic products manufacturers dipped slightly (less than 1%) in March compared to a year ago after rising 3.3% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. After a steep run-up that began in 2021, producer prices have eased amid a decline in sales. Industry sales fell 15% in the fourth quarter of 2023 compared to a year ago and were down 11.6% versus Q3. Employment by plastic products manufacturers shrank 2.2% in March year over year, while average industry wages rose 2.1% over the same period to $24.06 per hour, a penny shy of their all-time high in October 2023, BLS data show.
- According to newly released Census Bureau figures, US capital expenditures for robotic equipment totaled $12,960 million (not statistically different than 2021) and accounted for 1.1% of total equipment expenditures in 2022. The manufacturing sector was the largest investor, accounting for more than half (56.2%) of all robotic equipment expenditures – nearly $7.3 billion that year. Amid a stubborn labor shortage, manufacturers rely increasingly on automation, including robots, for some tasks to achieve greater productivity. Also, collaborative robots (aka "cobots”) that work alongside humans are becoming increasingly popular with smaller manufacturers that cannot afford expensive industrial robots. According to The Robot Report, plastics manufacturing is among the top industries for robotics growth. Common tasks for robots in plastics manufacturing include injection and blow molding, welding, sorting, material handling, machining, and gluing.
- 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.
- A landmark truth-in-labeling law in California will prohibit companies from placing recycling symbols on products that are not widely recycled in the state, The New York Times reports. The new law, which takes effect in fall 2025, will affect many plastics that carry the “chasing arrows” symbol, like soda cups and yogurt containers, that are rarely recycled – specifically those without a 1 or 2 on the package such as milk and soda bottles, the only plastics said to be reliably recycled. The bill's supporters hope it will motivate makers of plastic packaging to switch to more sustainable materials, while the industry argues the focus should be on improving recycling rates by educating consumers and expanding recycling infrastructure, NYT reports.
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