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 85 workers, and generates about $103 million annually.

    • The resin, rubber and fiber manufacturing industry consists of about 1,000 companies which employ about 90,400 workers and generate about $95 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

                                    Dec 5, 2022 - Expanding Natural Rubber Production
                                    • Bridgestone in November was awarded a $35 million climate-smart grant by the US Department of Agriculture to invest in the desert shrub guayule to expand natural rubber production in the US and provide growers in the Southwest with a more environmentally sustainable crop amid an ongoing water crisis. The investment in guayule production will allow the tiremaker to expand natural rubber production with lowered greenhouse gas emissions and to create jobs in the region for local farmers and Native American tribes to build a rubber bio-economy based on climate-smart and sustainable practices, Rubber World reports. Bridgestone in 2015 produced the first tire made from guayule-derived natural rubber. More recently, the company announced it is expanding the number of local farmers it partners with in Central Arizona and is targeting 350 new acres of guayule to be planted in 2023.
                                    • Manufacturers are facing a potential shortage of diesel fuel that has driven up the price to a record premium over gasoline and crude oil, The Wall Street Journal in November 2022. 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, according to WSJ. 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.
                                    • The US Tire Manufacturers Association (USTMA) is projecting another record year for tire shipments, with shipments rising 2.1% over 2021. In 2022, USTMA is projecting total US tire shipments of 342.1 million units, compared to 335.2 million units in 2021, and 332.7 million units in 2019. Compared with 2021, original equipment (OE) shipments for passenger, light truck and truck tires this year are expected to increase respectively by 4.8%, 4.8%, and 7.8%, with a total increase of 2.5 million units. Replacement passenger, light truck and truck tire shipments are also projected to increase by 0.9%, 2.3%, and 6.5% respectively, with a total increase of 4.4 million units, USTMA reports. Tire shipments drive demand for synthetic rubber used in tire manufacturing.
                                    • Unlike previous recessions that ended with a net loss of factory jobs, the unique circumstances of the pandemic-induced recession and recovery have resulted in a net job gain – although not in the sectors or regions typically associated with manufacturing, The New York Times reports. American manufacturers eliminated roughly 1.36 million jobs from February to April of 2020, as the pandemic shut down much of the US economy. As of August 2022, however, manufacturers had added back about 1.43 million jobs, a net gain of 67,000 workers above pre pandemic levels, according to data cited by NYTs. The current resurgence in factory employment is being driven by recovery in industries including pharmaceuticals, craft breweries and ice-cream makers, NYTs reports. Moreover, the newly-created jobs are more apt to be located in the Mountain West and the Southeast than in traditional industrial strongholds of the Great Lakes region.
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