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 1,000 firms in the US manufacture resin and plastics material, 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 chord, latex gloves, insulative materials, vinyl windows and siding, hoses, and home furnishings.

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 98 workers, and generates about $106 million annually.

    • The resin, rubber and fiber manufacturing industry consists of about 1,060 companies which employ about 91,500 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 Chemical, Firestone Polymers, LyondellBasell, and divisions of petroleum producing companies like Chevron Phillips and Exxon Mobil.
                                    Industry Forecast
                                    Resin, Rubber & Fiber Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    May 8, 2023 - Cooling Economy Cools Tire Demand
                                    • The commercial tire sector is starting to feel the effects of the cooling economy, Rubber News reports. US GDP grew at a tepid annual rate of 1.1% in Q1 2023 down from 2.6% in Q4 2022, according to the advance estimate released by the Bureau of Economic Analysis. The economic slowdown has sparked a “freight recession” says trucking firm J.B. Hunt President Shelley Simpson. Low demand for freight has reduced the number of semis on US roads and is even pushing some truckers to sell their vehicles, decreasing demand for commercial tires. Trucking demand declined steeply in March versus February according to the American Trucking Associations (ATA). The ATA’s chief economist Bob Costello told The Wall Street Journal that he’s seen trucking companies with fleets in the range of 200 to 300 vehicles failing at a rate of about one a week.
                                    • Nexen Tire America joined other tire manufacturers debuting tires made with sustainable materials, Modern Tire Dealer reported in April. Nexen’s new demo tire, composed of 52% sustainable materials, contains renewable materials like natural rubber, bio-based synthetic rubber and silica derived from rice husk waste residue. "Another significant feature of the tire is that it is made of 8% recycled materials, using polyester cord formed from recycled plastic PET bottles and bead wire derived from scrap iron, using an electric arc furnace," according to Nexen officials. Earlier this year Goodyear unveiled a tire with 90% sustainable products such as soybean oil, rice husks, and pine resin. While Goodyear’s tire has been approved for road use, the company says it still needs to figure out scaling measures before bringing it to market. However, Goodyear has plans to to first bring a 70% sustainable material tire to market this year.
                                    • Oil prices surged following OPEC’s surprise announcement of substantial cuts in production, The New York Times reported in April. The Saudi-led cartel announced cuts totaling more than 1.1 million barrels a day, or 1% of global production, beginning in May. Saudi Arabia, OPEC’s top oil producer, said it would cut by far the most, reducing by 500,000 barrels a day, followed by Iraq (211,000 barrels), United Arab Emirates (144,000 barrels) and five other countries.The price of Brent crude, the international benchmark, rose more than 6%, to nearly $84.93 a barrel the day after OPEC’s announcement, while West Texas Intermediate crude, the US standard, rose by a similar amount, trading over $80 a barrel. The OPEC cut came on the heels of the announced voluntary adjustment by the Russian Federation of 500,000 barrels per day until the end of 2023.
                                    • Overall rubber demand will increase by 2.8% in 2023, followed by an average annual 2.4% growth in rubber demand between 2023 and 2031, the International Rubber Study Group (IRSG) forecasts. Global demand for natural rubber is forecast to slow to 2.8% this year, following a sharp recovery between 2021 and 2022. Natural rubber production recovered by 5.4% in 2021, but remains below its 2018 peak. However, natural rubber production is forecast to further expand by 2.9% in 2023. Synthetic rubber demand, which also recorded a solid recovery of 11.1% in 2021, is anticipated to grow 2.8% in 2023. The global rubber market is expected to tighten due to the lower rate of new plantation development and replanting, according to Apple Rubber, a designer and manufacturer of seals and sealing devices.
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