Improving economic conditions are expected to encourage industry revenue growth
New York, NY (PRWEB) December 20, 2013
Plastic products have a wide range of uses and their versatility has helped the Plastic Products Miscellaneous Manufacturing industry withstand the recession with relative strength in comparison to other manufacturing industries. In the five years to 2013, IBISWorld expects that industry revenue will decline at an annualized rate of 1.8% to $11.5 billion. A 13.3% drop in revenue in 2009 has largely influenced this rate, but since then the industry has been stabilizing as downstream demand has improved gradually from the recession's shocks. According to IBISWorld Industry Analyst James Crompton, “In 2013, revenue is expected to increase 0.2%.”
The industry relies heavily on several key industries to purchase its products. For example, automotive manufacturers, which account for 23.7% of revenue, use plastic in vehicle interiors and in some engine components. Furthermore, construction industries account for 26.0% of industry revenue; these markets were negatively impacted by the recession. As economic conditions improve, industry operators are expected to experience increasing profitability. However, improving profitability is not expected to attract additional operators to the industry. In the five years to 2013, IBISWorld estimates the number of industry enterprises has declined at an annualized rate of 4.1%; this number is expected to continue declining in the five years to 2018. However, improving economic conditions are expected to encourage industry revenue growth in the next five years.
Trade continues to play an important role in the industry, with imports and exports accounting for 37.0% and 34.5% of industry revenue, respectively. “Increasing competition from imports is expected to reduce the attractiveness of entering the industry,” says Crompton. In the five years to 2013, imports are expected to increase at an annualized rate of 2.1%. Conversely, exports are expected to decline at an annualized rate of 2.4% in the period. As import competition remains steady, the industry is expected to consolidate. Moving forward, IBISWorld anticipates that operators will focus on specific markets to remain competitive. The wide variety of products included in this industry enables smaller operators to compete effectively by focusing on a particular market, a trend that is expected to continue in the five years to 2018.
The Plastic Products Miscellaneous Manufacturing industry consists of a large number of small, regional companies. As a result, the concentration is low. The wide variety of products manufactured in this industry and the diverse buying markets make it difficult for individual companies to grab a large portion of the market share.
For more information, visit IBISWorld’s Plastic Products Miscellaneous Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Plastic Products Miscellaneous Manufacturing industry manufactures a range of plastic products, including housewares, building materials, motor vehicle parts, resilient floor coverings and appliance parts. This industry specifically excludes plastic film, sheet, bags, profile shapes, pipes, pipe fittings, laminates, foam products and bottles.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
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