HOUSTON (Sept. 1, 11:30 a.m. EDT) — Phillip Townsend Associates of Houston has shed some light on the North American compounding market with the fifth edition if its North American Thermoplastic Compounding study.
The study, compiled by Townsend analysts Kevin Smith and Depak Shenoy, spotlights a number of trends among the 225 companies and 385 compounding plants that it covers. Those trends include:
* An 8 percent increase in the size of the average North American compounding plant, from 50 million to 54 million pounds, since Townsend last updated the study in 1997.
* The number of sites offering small lots of between 5,000 and 20,000 pounds increased from 20 to 45.
* The sites had a total of 18 billion pounds of capacity, with 10 billion pounds of that total being used for toll compounding at least part time.
* Among resins, polycarbonate had the highest growth rate.
* Average loading of concentrates was 20 percent.
Smith said he was somewhat surprised by the number of compounders that also are doing business via reselling or resin distribution.
“It seems [compounders] are less concerned about competing with their customers [in reselling and distribution],” he said. “More [compounders] are looking to be full-service providers.”