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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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.

Manufacturing Sector Disrupted

The manufacturing sector drives demand for resin, plastic, rubber and fiber materials.

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

                                    Coronavirus Update

                                    Apr 29, 2022 - PCR in Short Supply
                                    • The gap in supply and demand for post-consumer resin (PCR) needed to satisfy California’s new minimum-recycled-content mandate for plastic beverage containers has manufacturers scrambling, a report from Independent Commodity Intelligence Services (ICIS) found. Under the law, manufacturers selling their containers in California are required to include an annual average of 15% PCR, which will increase to 25% in 2025 and 50% in 2030. The California requirement, which went into effect in January 2022, has increased demand for recycled resins, but, according to ICIS, the US supply is “currently limited and expected to remain constrained in the short to mid-term.” Bills passed in Washington and New Jersey have similar recycled-content mandates that start in 2023 and 2024, respectively.
                                    • In collaboration with the Department of Defense, Goodyear is working to accelerate commercialization of natural rubber from dandelions. As a critical ingredient in military aircraft and truck tires, rubber is a strategic raw material. However, it’s primarily sourced from tropical locations outside the US. The multimillion-dollar, multi-year project aims to produce rubber from a specific species of dandelion, Taraxacum kok-saghyz, which has proven to be a viable alternative to natural rubber trees. Commercialization of rubber from dandelions has the potential to provide rubber products manufacturers, who are major customers, with alternative sources of supply in the future.
                                    • Demand from the auto industry may remain below pre-pandemic levels during 2022 due to ongoing semiconductor shortages, rising interest rates, and the impact of Russia’s invasion of Ukraine on world economies, materials availability, and consumer confidence. In mid-March, S&P cut its forecast for North American light vehicle production by 480,000 units in 2022 and 549,000 units in 2023. Labor shortages and supply chain issues continue to be a concern. The global supply of semiconductors and electrical wiring harnesses was strained before the conflict, but shortages of Ukrainian neon gas and Russian palladium needed for production are expected to exacerbate the situation.
                                    • New orders for durable goods increased 12% in value year over year in February 2022 and reached a February record level, according to the US Census Bureau. New orders are an indicator of upcoming demand for inputs like resin, rubber, and fiber.
                                    • Employment in the resin, rubber and fiber manufacturing industry rose 0.3% in February 2022 compared to a year ago and was down 2.6% from the pre-pandemic month of February 2020.
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