Documente Academic
Documente Profesional
Documente Cultură
WWW.IBISWORLD.COM
David Witter
16 International Trade
32 Key Statistics
Industry Definition
18 Business Locations
32 Industry Data
Main Activities
Similar Industries
20 Competitive Landscape
Additional Resources
32 Annual Change
3 Industry at a Glance
32 Key Ratios
4 Industry Performance
22 Barriers to Entry
Executive Summary
23 Industry Globalization
Current Performance
25 Major Companies
Industry Outlook
28 Operating Conditions
12 Products & Markets
28 Capital Intensity
12 Supply Chains
29 Revenue Volatility
14 Demand Determinants
15 Major Markets
30 Industry Assistance
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Main Activities
Similar Industries
Additional Resources
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Industry at a Glance
Plastic & Resin Manufacturing in 2016
Key Statistics
Snapshot
Revenue
Profit
Exports
Businesses
$103.5bn 0.1%
2.3%
$34.6bn 1,053
$6.5bn
% change
30
20
20
10
10
% change
Market Share
0
-10
0
-10
-20
-20
-30
Year 08
10
12
Revenue
14
16
18
20
-30
Year
22
09
11
13
15
17
19
21
Employment
SOURCE: WWW.IBISWORLD.COM
p. 25
2.3%
Other
13.1%
Demand from
manufacturing
Synthetic rubber
36.2%
Value of construction
Other thermoplastics
Trade-weighted index
13.6%
Thermosetting resins
and plastic materials
p. 4
34.8%
Thermoplastics - polyethylene
Industry Structure
Mature
Medium
High
Industry Assistance
Medium
Concentration Level
Low
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
Regulation Level
SOURCE:
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SOURCE:
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Heavy
Technology Change
Medium
Barriers to Entry
Medium
Industry Globalization
Competition Level
High
Medium
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Industry Performance
Value of construction
Industry products such as PVC pipes,
windows, moldings and flooring are
used as inputs in a wide variety of
materials that are used by the
construction sector, most notably in
home building. Consequently, demand
for synthetic resins and plastic materials
is influenced by the level of construction
activity. The value of construction is
expected to increase in 2016,
As
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Industry Performance
1500
10
1300
$ billion
% change
-10
900
-20
-30
Year
1100
09
11
13
15
17
19
21
700
Year 06
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
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Industry Performance
Current
Performance
Volatile demand
Consumer
spending plays a
key role in determining the
level of demand
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Industry Performance
Exports
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Industry Performance
% change
Industry
Outlook
10
0
-10
-20
-30
Year 08
Revenue
10
12
14
16
18
20
22
Exports
SOURCE: WWW.IBISWORLD.COM
Sustained demand
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Industry Performance
Raw
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Industry Performance
Life Cycle Stage
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Laminated Plastics
Manufacturing
Decline
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
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Industry Performance
industry
is M
ature
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Supply Chain
32612
32613
32614
32615
32616
22112
22121
23712
32411
32511
Polyethylene is a thermoplastic, or a
group of plastics that can be heated and
re-formed several times. It is classified
into categories based on its density and
branching, as these two factors have a
significant impact on its mechanical
properties and applications. Branching
refers to polymer chains with branch
points that can connect additional chain
segments. In general, the more branching
a polymer has, the less dense and hard it
will be. High-density polyethylene, which
has a low degree of branching, is
commonly used in items like milk jugs,
detergent bottles, garbage containers and
a large number of toys. In contrast,
low-density polyethylene has a high
volume of branching is a popular choice
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13.1%
2.3%
Other
Synthetic rubber
36.2%
Other thermoplastics
13.6%
Thermosetting resins
and plastic materials
Total $103.5bn
34.8%
Thermoplastics - polyethylene
SOURCE: WWW.IBISWORLD.COM
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Synthetic rubber
Unlike natural rubber, which comes from
trees, synthetic rubber is man-made and
derived from petroleum and other
minerals. Synthetic rubbers are classified
according to whether they are vulcanized
or non-vulcanized. Vulcanization is a
process by which sulfur and other
chemicals are added to rubber in a curing
process, typically involving a
combination of high pressure and heat.
The result is a mechanically-superior
product that is stronger and more
durable. Products made from vulcanized
rubber include tires, shoe soles and
hockey pucks. Un-vulcanized rubber is
Demand
Determinants
Construction
A range of plastic inputs are used in
construction parts, like pipes that use
plastic materials, valves, fittings, flooring,
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Demand
Determinants
continued
Major Markets
13.0%
Other
33.9%
Manufacturing
19.6%
Construction
Total $103.5bn
33.5%
Exports
SOURCE: WWW.IBISWORLD.COM
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Exports
Exports make up the second largest
market for US plastic and resin
manufacturers at 33.5% of total industry
revenue in 2016, down from 38.3% in
2011. The total value of industry exports
has decline at 2.6% per year, on average.
The dollar has strengthened over the
period, making domestically produced
goods more expensive and constraining
growth, a trend expected to continue.
However, higher resin demand from
emerging economies, such as Mexico, has
supported export demand. Mexico has
increased its manufacturing output;
therefore, it is in need of more plastics
and resins for its produced goods. In the
five years to 2021, exports are forecast to
increase at an annualized rate of 0.6%.
Construction
The construction market accounts for an
estimated 19.6% of industry revenue.
This industry primarily purchases
thermoplastic resins used in flooring and
window covering applications. When the
subprime mortgage crisis hit, plastic and
International Trade
Level & Trend
xports in the
E
industry are H
igh
and D
ecreasing
Imports
in the
industry are
Mediumand S
teady
$ billion
Major Markets
continued
10
0
-10
-20
Year 08
Exports
10
12
Imports
14
16
18
20
22
Balance
SOURCE: WWW.IBISWORLD.COM
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International Trade
continued
Exports To...
5.7%
Belgium
10.1%
7.8%
China
44.0%
8.3%
Mexico
Japan
All Others
39.1%
All others
10.0%
17.0%
Germany
Canada
34.8%
Canada
23.2%
Mexico
Year: 2016
Total $34.6bn
Total $16.0bn
SOURCE: USITC
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West
New
England
AK
0.0
Great
Lakes
WA
ND
MT
0.8
Rocky
Mountains
ID
OR
1.3
West NV
0.5
1.9
SD
0.1
WY
0.4
MN
0.0
0.2
Plains
CO
0.8
KY
0.7
OK
0.8
NC
4.4
TN
AZ
NM
1.1
0.1
Southwest
TX
9.5
HI
0.1
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.1
1.7
0.9
3.2
3.4
0.5
SC
Southeast
0.6
MS
AL
1.8
1.9
GA
4.0
1.2
LA
2.1
FL
2.8
Establishments (%)
1.1
0.6
AR
0.5
1.7
10.1
WV VA
1.0
2.5
1.4
CA
West
7.6
MO
KS
0.8
OH
3.4
5.7
4.5
IN
IL
0.3
UT
PA
5.3
0.8
0.2
1 2
3
NY
2.8
5 4
MI
3.1
IA
NE
0.0
WI
ME
MidAtlantic
9 DC
0.1
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
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20
10
Southwest
Southeast
Plains
New England
Rocky Mountains
Establishments
Mid-Atlantic
Great Lakes
0
West
Business Locations
Population
SOURCE: WWW.IBISWORLD.COM
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20
Competitive Landscape
in
this industry is L ow
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
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21
Competitive Landscape
Industry Costs
(2016)
7.1
11.0
6.3
5.6
56.0
66.0
n Profit
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other
80
Percentage of revenue
Cost Structure
Benchmarks
continued
60
40
20
2.4
2.6
20.0
0.9
2.0
3.6
0.1
16.4
0
SOURCE: WWW.IBISWORLD.COM
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22
Competitive Landscape
Cost Structure
Benchmarks
continued
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Mediumand the
trend is I ncreasing
Barriers to Entry
Level & Trend
arriers to Entry
B
Internal competition
Price is the key basis for competition in
the Plastic and Resin Manufacturing
industry. However, given the fact that
plastic materials, resin and synthetic
rubber are global commodities, prices are
largely determined by those of global
chemicals like ethylene, which is a key
input for polyethylene and other
thermoplastics. Price is also dependent
upon other variables like the prices of
raw materials such as crude oil and
natural gas, as well as the degree or
integration and scale of production. A
larger plastic and resin manufacturer
may own its own supplier and
distributor; therefore, the firm can
reduce costs and price its products more
competitively than other operators.
Product performance attributes, such
as strength-to-weight ratios, waterproof
ability, malleability, safety, installation
costs and the ability to be recycled are
also major factors for competition.
Research and development (R&D) is the
External competition
The industry often competes against
manufacturers of similar products
composed of substitute materials, such as
rubber, wood and tile. Plastic and resin
manufacturers generally compete with
rubber and other substitute material
manufacturers on price, product
performance, technological innovation,
quality and service. Much like the
relationship between competing domestic
plastic and resin manufacturers, the
advantage over foreign competition often
stems from a companys cost structure,
which is primarily affected by raw material
prices. In 2016, imports are expected to
meet 18.9% of domestic demand, and this
level has risen over the past five years.
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23
Competitive Landscape
in
this industry is
Highand the trend
is I ncreasing
International trade is a
major determinant of
an industrys level of
globalization.
Exports offer growth
opportunities for firms.
However there are legal,
economic and political risks
associated with dealing in
foreign countries.
Import competition can
bring a greater risk for
companies as foreign
producers satisfy domestic
demand that local firms
would otherwise supply.
Medium
Low
Mature
High
Medium
Heavy
Medium
SOURCE: WWW.IBISWORLD.COM
Global
150
100
0 Local
0
Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance
Export
50
Import
40
160
80
120
Imports/Domestic Demand
200 Export
Exports/Revenue
Industry
Globalization
Exports/Revenue
Barriers to Entry
continued
Global
150
100
50
2003
0 Local
0
2016
Import
40
80
120
160
Imports/Domestic Demand
SOURCE: WWW.IBISWORLD.COM
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24
Competitive Landscape
Industry
Globalization
continued
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Major Companies
The Dow Chemical Company | Other Companies
Major players
(Market share)
89.6%
Other
Player Performance
The Dow Chemical
Company
Market share: 10.4%
Industry Brand Names
Dow Chemical
SOURCE: WWW.IBISWORLD.COM
Revenue
($ million)
(% change)
Operating Income
($ million)
2011
12,306.9
N/C
738.8
N/C
2012
11,330.4
-7.9
332.2
-55.0
2013
11,536.7
1.8
1,375.2
314.0
2014
12,875.1
11.6
1,165.4
-15.3
2015
11,093.0
-13.8
1,642.6
40.9
2016
10,361.2
-6.6
1,384.6
-15.7
*Estimates
(% change)
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Major Companies
Player Performance
continued
Financial performance
The company operates in the industry via
its performance plastics, coating and
infrastructure solutions and performance
materials segments. Over the five years to
2016, IBISWorld estimates that Dows
industry-specific revenue will decrease at
an annualized rate of 3.4% to $10.4 billion.
Improving downstream demand bolstered
company revenue and profitability at times
over the past five years. However, in 2015,
IBISWorld estimated a decrease in
revenue of 13.8%, as input prices fell
significantly, lowering the sales prices of
industry goods. Conversely, lower prices
are expected to bolster the companys
profitability as sales prices fall at a rate
slower than natural gas and crude oil
prices. During 2012, Dow implemented
two restructuring plans designed to
advance the company and address
macroeconomic concerns. As a result,
$357.0 million in restructuring charges
were booked, constraining company profit.
These new, leaner operations have
translated to improved margins.
Other Companies
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Major Companies
Other Companies
continued
Hexion Inc.
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Operating Conditions
of capital
intensity is H
igh
Capital intensity
Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Adhesive Manufacturing
Capital Intensive
Labor Intensive
Chemical Product
Manufacturing
Old Economy
Agriculture and Manufacturing.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
of
Technology Change
is M
edium
Revenue Volatility
Level
The level
of
Volatility is M
edium
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Operating Conditions
Volatility vs Growth
1000
Revenue Volatility
continued
Hazardous
Rollercoaster
100
10
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Regulation is H
eavy
and the trend
is I ncreasing
Industry Assistance
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Operating Conditions
Industry Assistance
continued
Level & Trend
he level of Industry
T
Assistance is
Mediumand the
trend is I ncreasing
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32
Key Statistics
Industry Data
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Industry
Revenue Value Added
($m)
($m)
106,590.5
12,110.6
103,087.0
9,809.0
75,610.7
9,405.5
96,309.1
12,267.3
102,956.7
12,630.1
106,705.3
13,730.3
106,395.5
13,408.2
107,511.3
14,321.4
101,224.7
13,984.2
103,479.1
14,512.6
106,256.2
14,513.8
109,328.6
14,766.0
111,856.7
14,943.8
114,131.1
15,175.1
116,153.2
15,436.3
10/193
13/193
107/1370
202/1370
Annual Change
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Industry
Revenue Value Added
(%)
(%)
-3.3
-19.0
-26.7
-4.1
27.4
30.4
6.9
3.0
3.6
8.7
-0.3
-2.3
1.0
6.8
-5.8
-2.4
2.2
3.8
2.7
0.0
2.9
1.7
2.3
1.2
2.0
1.5
1.8
1.7
104/193
125/193
1024/1370 1117/1370
Key Ratios
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
IVA/Revenue
(%)
11.36
9.52
12.44
12.74
12.27
12.87
12.60
13.32
13.82
14.02
13.66
13.51
13.36
13.30
13.29
180/193
1247/1370
Imports/
Demand
(%)
15.74
17.61
16.55
17.54
19.29
18.18
18.17
19.35
18.63
18.88
18.64
18.43
18.43
18.13
18.23
109/180
237/432
Establishments
949
1,217
1,176
1,156
1,171
1,310
1,283
1,312
1,287
1,311
1,326
1,355
1,371
1,400
1,410
61/193
809/1370
Establishments
(%)
28.2
-3.4
-1.7
1.3
11.9
-2.1
2.3
-1.9
1.9
1.1
2.2
1.2
2.1
0.7
42/193
652/1370
Enterprises Employment
675
69,654
907
82,516
893
72,858
882
70,608
892
71,958
1,014
77,668
1,029
78,166
1,052
79,218
1,034
76,082
1,053
77,584
1,066
78,904
1,089
80,833
1,100
82,062
1,125
83,661
1,133
84,626
64/193
41/193
780/1370
440/1370
Enterprises Employment
(%)
(%)
34.4
18.5
-1.5
-11.7
-1.2
-3.1
1.1
1.9
13.7
7.9
1.5
0.6
2.2
1.3
-1.7
-4.0
1.8
2.0
1.2
1.7
2.2
2.4
1.0
1.5
2.3
1.9
0.7
1.2
35/193
68/193
580/1370
828/1370
Exports/
Revenue
(%)
31.35
34.26
36.59
37.07
38.31
35.15
34.77
34.19
33.10
33.47
32.61
32.08
31.52
31.12
30.71
37/180
83/432
Revenue per
Employee
($000)
1,530.29
1,249.30
1,037.78
1,364.00
1,430.79
1,373.86
1,361.15
1,357.16
1,330.47
1,333.77
1,346.65
1,352.52
1,363.08
1,364.21
1,372.55
12/193
69/1370
Exports
($m)
33,411.2
35,317.8
27,662.7
35,704.3
39,437.7
37,504.0
36,996.0
36,762.8
33,500.7
34,632.7
34,645.1
35,069.2
35,253.7
35,515.2
35,671.2
7/180
8/432
Exports
(%)
5.7
-21.7
29.1
10.5
-4.9
-1.4
-0.6
-8.9
3.4
0.0
1.2
0.5
0.7
0.4
23/180
93/432
Wages/Revenue
(%)
5.06
5.62
6.84
5.54
5.47
5.57
5.50
5.52
5.58
5.58
5.55
5.54
5.52
5.53
5.51
174/193
1264/1370
Imports
($m)
13,669.2
14,485.5
9,507.8
12,892.6
15,180.0
15,379.0
15,410.6
16,979.3
15,506.4
16,023.1
16,408.1
16,776.6
17,308.3
17,408.1
17,939.0
40/180
46/432
Imports
(%)
6.0
-34.4
35.6
17.7
1.3
0.2
10.2
-8.7
3.3
2.4
2.2
3.2
0.6
3.0
78/180
221/432
Employees
per Est.
73.40
67.80
61.95
61.08
61.45
59.29
60.92
60.38
59.12
59.18
59.51
59.66
59.86
59.76
60.02
70/193
200/1370
Wages
($m)
5,395.4
5,788.6
5,171.3
5,333.0
5,629.0
5,940.9
5,854.1
5,935.5
5,643.5
5,770.2
5,895.2
6,061.7
6,177.4
6,311.4
6,403.2
33/193
295/1370
Wages
(%)
7.3
-10.7
3.1
5.6
5.5
-1.5
1.4
-4.9
2.2
2.2
2.8
1.9
2.2
1.5
79/193
886/1370
World Price
Domestic of Crude Oil
Demand ($ per barrel)
86,848.5
71.1
82,254.7
97.0
57,455.8
61.8
73,497.4
79.6
78,699.0
104.0
84,580.3
105.0
84,810.1
104.1
87,727.8
96.2
83,230.4
51.0
84,869.5
47.7
88,019.2
54.8
91,036.0
59.6
93,911.3
63.7
96,024.0
66.0
98,421.0
70.2
15/180
N/A
20/432
N/A
Average Wage
($)
77,460.02
70,151.24
70,977.79
75,529.69
78,226.19
76,490.96
74,893.18
74,926.15
74,176.55
74,373.58
74,713.58
74,990.41
75,277.23
75,440.17
75,664.69
27/193
254/1370
Share of the
Economy
(%)
0.08
0.07
0.07
0.08
0.08
0.09
0.09
0.09
0.09
0.09
0.08
0.08
0.08
0.08
0.08
13/193
202/1370
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Jargon
IBISWorld Glossary
WWW.IBISWORLD.COM
IBISWorld Glossary
continued
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