SPI releases 2 reports showing pace of plastics industry.
Press Release Summary:
SPI's 2006 Global Business Trends as well as Size and Impact of the Plastics Industry on the U.S. Economy show that despite various negative factors, there are positive signs. The reports show that plastics is the 3rd largest U.S. manufacturing industry, shipping $379 billion worth of goods and employing 1.1 million workers in 2006. Between 1980 and 2006, plastics grew annually at 1.1% employment, and the reports also show that plastics is a positive contributor to U.S. trade balance.
Original Press Release:
Two New SPI Reports Show U.S. Plastics Industry Outpaces Other American Manufacturing and Increases Role in Global Trade
Washington, D.C. (November 8, 2007) - The U.S. plastics industry is stronger than ever and still growing in sales despite years of globalization and outsourcing to lower-cost countries. That is the state of the industry according to two new reports released today by the Society of the Plastics Industry, Inc. (SPI).
While SPI's 2006 Global Business Trends and Size and Impact of the Plastics Industry on the U.S. Economy reports show that high energy prices, corporate tax rates and China currency devaluation continue to place U.S. plastics manufacturers at a competitive disadvantage in the global marketplace, they also uncover some bright spots:
3rd-Largest U.S. Manufacturing Industry: the U.S. plastics industry shipped $379-billion worth of goods (up from $341-billion in 2005); employed 1.1 million workers at 18,585 facilities throughout the country; and invested $11.3-billion in new capital equipment.
One of the Fastest-Growing U.S. Manufacturing Sectors: Between 1980 and 2006, U.S. plastics grew annually at rates of 1.1% in employment (versus -1.1% for all manufacturing), 3.4% in real shipments (versus 1.0%), 3.2% in real value added (versus 1.4%), and 2.3% in productivity (versus 2.0%).
Largest Single National Market for Plastics: Annual apparent consumption (U.S. shipments plus imports and minus exports) totaled about $275-billion in 2006, 7.6% greater than in 2005 and more than double the total in 1990. A little over $200-million of the 2006 total was accounted for by plastic components and finished products, the balance being resins, machinery, and molds.
Key Factor in World Plastics Trade: U.S. annual plastics exports increased by 12.3% in 2006, and in the first seven months of 2007 grew 11.7% over the same period in 2006. Imports increased 7.5% in 2006 and decreased 2.3% in the first seven months of 2007. Canada and Mexico are the country's largest plastics trading partners and are markets for nearly half of U.S. exports. China is the third-largest trading partner and the second-largest source of plastics imports by the U.S., after Canada. In 2006, U.S. plastics exports were valued at $43.4-billion; imports totaled $37.6-billion.
Positive Contributor to U.S. Trade Balance: The U.S. plastics industry's trade surplus was $5.8-billion in 2006, well up from $3.7-billion in 2005. In the first seven months of 2007, the surplus, at $5.9-billion, already exceeded whole-year 2006.
"The 2006 data show that the declines in jobs, number of facilities and capital expenditures that we began to see in 2000 remain with us," said SPI President and CEO William R. Carteaux. "But despite these challenges, the 18,500 plastics facilities operating in the U.S. today are more competitive than ever, with more sophisticated technology, better-trained workforces and greater focus on capturing new international business. This explains the continued strong growth in plastics shipments by the U.S. to both domestic and export markets, and the industry's substantial trade surplus."
SPI's 2006 Global Business Trends and Size and Impact of the Plastics Industry on the U.S. Economy reports are free to SPI members, government agencies and academic institutions. They are available for purchase at www.plasticsdatasource.org.
Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.1 million workers and provides nearly $341 billion in annual shipments.
Contact: Tracy Cullen
(202) 974-5282
Email: tcullen@plasticsindustry.org
