As downstream industries continues to rebound, demand for industry products will increase
New York, NY (PRWEB) November 23, 2014
After experiencing steep recessionary declines, the plastic and resin manufacturing industry bounced back strongly over the five years to 2014. Industry operators convert petrochemicals into resins that can be used to create plastic products. The industry's major markets are customers in the manufacturing and construction industries. At the height of the global recession, demand from these markets plummeted, subsequently causing revenue to decline in 2009. IBISWorld Economic Analyst Daniel Carusotto says in the updated report, “However, as economic conditions improved, demand from the manufacturing and construction sectors followed suit, effectively benefiting demand for industry products.” As a result, over the five years to 2014, IBISWorld expects industry revenue to increase.
The plastic and resin manufacturing industry is characterized by a high level of globalization, indicated by exports accounting for a substantial of revenue in 2014. As a result, the industry is highly susceptible to economic conditions abroad, most notably in the United States. Trade between the United States and Canada is extremely high as a result of proximity, leading to lower transport costs and the elimination of all trade barriers resulting from the North American Free Trade Agreement. Fortunately for industry operators, downstream users of industry products in the United States, most notably the car and automobile manufacturing industry (IBISWorld report 33611a), have rebounded sharply following the recession. In the five years to 2014, exports have increased greatly, to the benefit of industry operators.
Over the next five years, IBISWorld expects the plastic and resin manufacturing industry to continue growing, albeit at a slower pace than the previous five-year period as a result of the domestic and global economies returning to a more normalized growth path. “Nonetheless, export growth, spurred on by depreciating currency and rising downstream demand, will underpin solid revenue gains for industry operators,” Carusotto says in the updated report. Over the five years to 2019, IBISWorld expects industry revenue to increase. Despite solid revenue growth, profit margins are expected to stagnate as rising raw material costs and strong competition weigh on industry participants.
For more information, visit IBISWorld’s plastic and resin manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The plastic and resin manufacturing industry manufactures 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 chemical industries and industries involved in producing petroleum-based feedstock.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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