New York, NY (PRWEB) June 22, 2014
The Plastic and Rubber Machinery Manufacturing industry supplies capital equipment and machinery to plastic and rubber product manufacturers, who use industry machinery and other inputs to create products ranging from plastic pipes to retreading tires. The industry is heavily trade oriented, with 79.6% of industry revenue coming from exports. As a result, the industry is reliant on the health of the global economy, most notably the United States, which accounts for 54.5% of total exports. Due to recovering downstream demand from both domestic and international users, IBISWorld estimates that revenue will increase at an annualized rate of 1.6% to $1.1 billion, including growth of 0.8% in 2014.
However, due to strong reliance on exports, the industry operates on a global basis and must compete with increasing foreign competition that benefits from looser regulations and more affordable labour regulations. “The industry has been able to combat foreign competition by operating in niche segments and offering custom-engineered machines that are known for their high quality,” according to IBISWorld Industry Analyst Daniel Carusotto. Additionally, industry operators have been able to build a strong customer base by taking advantage of internet platforms that allow operators to troubleshoot problems from a remote location. As a result of the niche aspect of this segment, industry operators have been able to keep profit margins stable despite rising input prices, most notably in steel.
Over the five years to 2019, IBISWorld expects the recovery of downstream markets, after being hit hard by the recession, to continue. “Competition from imports is expected to remain high, however, reputation and quality will be essential to combat import penetration,” says Carusotto. While the industry is expected to continue to show slow stable growth, underperformance of both domestic and foreign downstream users compared with the previous five-year period will place pressure on industry performance.
For more information, visit IBISWorld’s Plastics and Rubber Machinery Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures machinery used to make or process plastic and rubber products, including machinery for: blow moulding, calendaring, plastic-compression moulding, extruding, injection moulding, plastic working, rubber working, tire making, tire recapping and tire shredding.
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.
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 and Canadian 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.