Plastic & Rubber Product Manufacturing

Plastic & Rubber Product Manufacturing - Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture plastic bags and bottles, plastic film and sheets, plastic pipe and foams, rubber hoses, and tires. Major companies include US-based Berry Plastics, Cooper Tire & Rubber, Goodyear, Newell Rubbermaid, and Pactiv, as well as Amcor (Australia), Bridgestone (Japan), Michelin (France), and Pirelli (Italy).

The global plastic and rubber product manufacturing industry generates annual revenue of more than $1 trillion. Top global suppliers of plastic and rubber products include China, Germany, and the US. Producers are targeting countries with large, emerging economies such as India, China, and Brazil for growth.

The US plastic and rubber product manufacturing industry includes about 13,000 companies with combined annual revenue of about $200 billion and is expected to experience low growth in the next two years. Industry growth is tied to spending levels for consumer and industrial products.

Tire manufacturers, which are included in the industry, are covered in a separate profile.

COMPETITIVE LANDSCAPE

Because plastic products are widely used in industry and as consumer products, demand depends on the health of the US economy. The profitability of individual companies depends on product mix and production efficiency. Large companies have economies of scale in buying raw materials and in manufacturing commodity products such as bottles and plastic film. Small companies can compete effectively by specializing.

The US plastic and rubber product manufacturing industry overall is fragmented: the 50 largest companies account for about one-third of sales. However, the industry has hundreds...