Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • CEO Issue
    • Diversity
    • Best Places to Work
      • 2022 winners
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Reuters Responsible Business Europe 2022
    • Reifenhäuser Technologies Livestreams
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
April 12, 2010 02:00 AM

Screw && barrel sales pick up

Bill Bregar
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Screw and barrel makers are getting busy, and some are even hiring — a sign that plastics factories are restarting machines that got shut off in 2009.

    “It's so much better than last year,” said David Mantyla, vice president and sales engineer at General Plastex Inc.

    Pent-up demand seems to be breaking loose, according to executives at makers of screws, barrels and components such as non-return valves. The big question now: Will it continue through this year?

    “We are seeing the end-user business is getting busier. Many of our customers that are custom molders, as well as proprietary molders, are getting busier, and it's in a lot of different industries,” said Dave Larson, president of Westland Corp.

    Screw and barrel sales are a leading economic indicator of future capital spending, according to plastics industry observers.

    “I always consider it a link in the chain of the industry,” said plastics analyst Bill Wood. “It will be behind the trend in actual output of plastic parts, but it will be ahead of the trend of orders for new machines.”

    Screws and barrels are basic components that melt and move plastic. Spending on screws and barrels right now could lead to investment, down the road, in new injection molding presses, extruders and blow molders.

    In 2009, plastics companies slashed capital spending to stay alive during the Great Recession. It was a bleak time for machinery makers.

    Makers of screws and barrels shared the pain. Some plastics processors even eliminated maintenance budgets. A few thousand dollars for a new screw was out of the question. Instead, if a screw wore out, they simply moved the mold to another machine. Or they cannibalized parts.

    “People just put worn-out screws to the side there. It was really bad,” Larson said. “From the end of 2008 through most of 2009, people had extra machines that were sitting idle. So why repair that screw and barrel? Just move it to another machine. But now they're getting busier, and they have to get that other equipment up and running.”

    The Society of the Plastics Industry Inc. reports that screws and barrels showed steady, modest improvement throughout 2009. The fourth quarter was the strongest for both, as Washington-based SPI said single screws reached 1,377 for the final period, up 6.5 percent from the third quarter. Fourth-quarter barrel shipments reached 1,252, a 14 percent gain from the third quarter. The numbers last year were well off the pace of past years, but the pickup at the end of 2009 shows the component sector is moving in the right direction — and reflects what screw and barrel companies said for this story.

    Consolidation was a big story for 2009. The two biggest players joined forces in September as Xaloy Inc. of New Castle, Pa., bought Spirex Corp. in nearby Youngstown, Ohio. Smaller players welcomed the news as a way to reduce overcapacity in screws and barrels in the slumping market.

    Shortly after announcing the sale, Xaloy said it was closing an Xaloy screw-making plant in New Hampshire and Spirex's bimetallic barrel plant in Wisconsin.

    Production volume at North American processors dropped between 20 and 40 percent in 2009, from a good year, say 2008, said Ron Auletta, Xaloy's president and CEO. Automotive was worse, medical and packing fared better.

    But so far in 2010, that has shifted from a decline of 10-25 percent, so the plastics industry has still not recovered to 2008 levels, but it's improving, he said.

    “I'm optimistic for 2010,” Auletta said.

    In March of 2009, Westland reduced working hours and laid off a few people. But the company in Wichita, Kan., saw business turn up last November, and that has carried through so far in 2010, Larson said. Westland rehired the people and has gone back to a full workweek for its 46 employees.

    “If it continues, we'll be looking at hiring a few more people in the next few months,” he said.

    Mantyla said that Barberton, Ohio-based General Plastex started getting busy in December. “We're seeing people putting machines back into service, and they're now trying to play catch-up on some of the machines that have been neglected,” he said.

    Plastic part production is still at a low level, but it has been increasing gradually each month, Wood said. Modest growth is an improvement.

    “One year ago at this time, it was absolute panic. It was panic mode and everybody just shut down. A lot of the manufacturing sector went into absolute zero,” said Wood, who runs Mountaintop Economics & Research Inc. in Greenfield, Mass. “Now the overall trend is mostly up.”

    Jerry Warren agrees with that view. “People were afraid to do things. Everything was like Chicken Little. People were afraid the sky was falling,” said Warren, vice president of aftermarket business at Davis-Standard LLC in Pawcatuck, Conn.

    Warren said customers are more upbeat now. “It's really picking up nicely. You can just see the consistency,” he said. “People are planning projects for the future.”

    Overall plastics manufacturing is gaining steam. Kris Bledowski, an economist with the Manufacturers Alliance/MAPI of Arlington, Va., predicts U.S. plastic product manufacturing should grow by 3 percent in 2010 and 6 percent in 2011. It sank by 14 percent in 2009, he said in a speech at the Plastics News Executive Forum last month.

    North American automotive production also should rebound, after a dismal 2009, he said.

    Several executives said automotive molders are investing in new screws and barrels. “They're starting to pick up on their parts production,” said Jeffrey Kuhman, president of Glycon Corp.

    “Now they go back and see these machines they've taken out of production and say, 'Oh my gosh, we need a new screw and barrel for that machine.' “

    Automotive has led an across-the-board pickup in work, Kuhman said. “Glycon is very busy right now and still getting busier,” he said in late March. The Tecumseh, Mich., company will bring back a second shift, call back two machinists who were laid off, and hire five more people.

    But Kuhman wonders if the boomlet in screw and barrel production will last.

    “We're seeing inflated demand because of the pent-up demand. We think some of what we're seeing is permanent, but we don't think it's going to continue at these levels,” he said.

    Kuhman and Larson said the federal Cash for Clunkers program drew down inventories of cars and automotive parts. A decent year for car sales is important for a general plastics recovery, they said.

    “Automotive is strong at this point, and I don't know if that'll stay,” Larson said.

    Kuhman thinks the economy still has some “trouble spots,” like the deficit, layoffs of city employees and weakness in home prices. “There's still some weakness in the economy,” he said.

    Capacity utilization — a measure of the number of machines running at U.S. plastics and rubber plants — has ticked up about 1 percentage point a month since mid-2009, but it remains weak, at 71.3 percent in February, according to the Federal Reserve. That's far below the 85 percent rate needed to spark broad-based spending on new machinery. But every percentage point gain means some processors need to get presses running again.

    Screws and barrels may be a window to future industrial spending, but non-return valves can predict injection molding screw sales, said Stan Glover, sales director at Zeiger Industries Inc. of Canton, Ohio. A good non-return valve, also known as a screw tip, is a key to making a consistent shot.

    “The first thing to recover, always, is non-return valves,” Glover said. “As machinery is brought back on line, the first components to be replaced will be the non-return valves, followed by screws and then barrels.”

    Glover said Zeiger's screw business has remained constant for the last 12 months. “It hasn't picked up like the non-return valves have,” he said.

    Wexco Corp. makes bimetallic barrels in Lynchburg, Va. “The whole quarter has been ramping up, but for the past six weeks it's been really strong,” Don Smith, product manager, said in late March.

    Wexco is working a lot of overtime. Smith said the company has brought back six or seven people who were laid off.

    “Confidence was down so far last year, and now we're on the upswing,” Smith said. “We're noticing it through the distributors and screw manufacturers and [machinery original equipment makers], across the board.”

    Copyright 2010 Crain Communications Inc. All Rights Reserved.

    RECOMMENDED FOR YOU
    Making the case for refugee, immigrant hiring practices
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    One killed, two injured in shooting at WeatherTech facility
    2
    Lego to build $1B US molding plant
    3
    Industry braces for return of Superfund excise taxes
    4
    Man shoots two employees at SC Fränkische plastics plant
    5
    Pandemic-prompted reshoring creates growth for medical injection molders
    SIGN UP FOR TO RECEIVE THESE EMAILS AND ENEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Urethanes Technology
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • CEO Issue
        • Diversity
        • Best Places to Work
          • 2022 winners
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Reuters Responsible Business Europe 2022
        • Reifenhäuser Technologies Livestreams
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified