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Plastic & Rubber Product Manufacturing
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US plastic and rubber products manufacturing industry includes about 10,000 companies with combined annual revenue of about $190 billion. Major companies include Berry Plastics, Cooper Tire & Rubber, Goodyear, Newell Rubbermaid, and Pactiv.
The global plastic and rubber product manufacturing industry generates annual revenue of more than $1 trillion. Leading companies based outside the US include Amcor (Australia), Bridgestone (Japan), Michelin (France), and Pirelli (Italy). The fragmented industry has hundreds of niches, determined by material type, manufacturing process, and end-use.
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 industry is capital-intensive: average annual revenue per employee is about $300,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include plastic bags and bottles, plastic film and sheets, plastic pipe and foams, rubber hoses, and tires. Plastic products account for about 80 percent of industry revenue.
Plastics and rubber have a wide range of physical properties, making them suitable for different uses. Most producers specialize in a few product lines, as the equipment and tooling needed to manufacture to customer specifications can be expensive. The...
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