US resin sector up 85 percent in 10 years

By Gayle S. Putrich
Staff Reporter

Published: July 24, 2013 5:10 pm ET
Updated: July 24, 2013 5:11 pm ET

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations American Chemistry Council

WASHINGTON – The plastics resin sector in the United States generates $87.1 billion in revenues annually, having grown by more than 85 percent in the last decade according to a new report from the American Chemistry Council.

In addition to being a robust industry, the report says the 54,900 people directly employed by plastic resin manufacturers are doing better than a vast majority of their counterparts in other industries.

“The average plastic resin manufacturer employee earns $85,400 annually [in 2012], more than 73 percent more than the average wage for all industries,” the report says.

“The report shows that the plastics industry is growing and creating good jobs,” said Steve Russell, ACC’s vice president of plastics, in a news release. “It’s no surprise because plastics deliver great value. And, plastic makers will continue to make significant investments for further growth.”

While it has grown, the plastics industry has also gotten greener, according to the ACC. “Since 1974…. fuel and power use per pound of plastic has improved 63 percent,” the report says. “And while plastic resins do consume energy in their production, their use in homes, vehicles, and packaging reduces energy consumption well beyond that required to produce them.”

Most of the plastic produced in the U.S. ends up taking the form of packaging and consumer goods and stays in the country, though nearly 15 billion pounds of thermoplastic resin was exported in 2012, PVC being the most popular of the resin exports at 40 percent, to the tune of $31.2 billion.

The report also attempts to quantify how much of a boon the recent shale gas deposit discoveries in the U.S. have been for the plastics industry in terms of production capacity, export capacity and job growth.

“Between 2005 and 2012, the US went from being among the highest cost producers of ethylene (a key plastic building block) to among the lowest cost producers globally,” the report says. “To capitalize on the US shale advantage, nearly $80 billion dollars of new investment in new chemical manufacturing capacity has been announced, including $7 billion of investments in new thermoplastic plastic resin capacity. These investments will add more than 25 percent capacity in thermoplastic resins.”

The report anticipates a 25 percent increase in U.S. thermoplastic resin capacity and a more than 10 percent increase in thermoplastic resin exports as a share of production over then next year as a direct result of dropping North American liquid natural gas prices.


Comments

US resin sector up 85 percent in 10 years

By Gayle S. Putrich
Staff Reporter

Published: July 24, 2013 5:10 pm ET
Updated: July 24, 2013 5:11 pm ET

Post Your Comments


Back to story


More stories

Image

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events