Plastic and Resin Manufacturing in the US Industry Market Research Report From IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) July 09, 2013 -- The Plastic and Resin Manufacturing industry experienced tough times during the Great Recession. The industry relies on demand from two key buying sectors: downstream manufacturers and the construction sector. Both of these sectors experienced significant demand and revenue declines in 2009 as the US economy collapsed, and cash-strapped consumers bought fewer manufactured goods and either delayed buying a home or were turned away due to strict lending standards. “Amid the sour economic conditions, manufacturing activity slowed while housing construction ground to a halt, causing demand for associated plastic and resin materials to fall,” says IBISWorld industry analyst Sean Windle. As a result, revenue growth in the industry has been tepid, rising at an average annual rate of only 0.7% to $103.2 billion in the five years to 2013.
Rising and volatile prices for raw materials have also presented a challenge to plastic and resin manufacturers. In the five years to 2013, the price of crude oil and natural gas, both key inputs for the industry, grew marginally at annualized rates of 0.2% and 0.6%, respectively. However, these figures mask double digit declines and increases in prices during and following the recession. Faced with these circumstances, operators were forced to initiate labor cuts and facility closures. Combined with other cost-cutting measures, this resulted in expanding profit margins over the past five years, from 4.9% of total revenue in 2008 to 5.7% in 2013.
Going forward, the Plastic and Resin Manufacturing industry is expected to enjoy robust growth, as manufacturing and construction activity pick up. Also promising for the industry is strong export growth, which are anticipated to account for 36.9% of industry revenue in 2013, up from 34.3% in 2008. According to Windle, that growth will likely continue over the next five years, as the value of the US dollar remains largely depreciated from prerecession levels and emerging economies overseas demand more plastic and resin inputs to fuel their growing manufacturing industries. As a result, revenue is expected to increase 2.9% in 2013. This growth in revenue is projected to continue over the next five years. The industry has a low level of concentration, reflecting the fragmented nature of the industry. There are an estimated 1,234 establishments operating in the industry, producing a variety of products. For more information, visit IBISWorld’s Plastic and Resin Manufacturing in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry is composed of establishments that primarily manufacture resins, plastic materials (i.e. polymers) and synthetic rubber. Key product groups include thermosetting resins, thermoplastic resins and synthetic rubber. Raw material inputs are sourced from other components from the chemical industry and from industries involved in the production of petroleum-based feedstock.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
Share this article