Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • 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
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • 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
    • PN Live: Mergers and Acquisitions
    • 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
  • 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
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • 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
May 13, 2015 02:00 AM

Shale gas expected to continue feeding US plastics boom

Gayle S. Putrich
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Michael A. Marcotte
    The American Chemistry Council's Steve Russell, seen here at NPE 2015, said the shale gas boom has sparked a plastics renaissance in the U.S.

    WASHINGTON — There has been much speculation on the renaissance the U.S. shale gas boom has created for the plastics industry, and a new report finally provides quantifiable proof that plastics jobs have not only recovered from the recession but are expected to continue to grow by more than 20 percent over the next decade.

    Abundant, accessible and affordable natural gas feedstocks have already driven a 12 percent increase in jobs since the end of the Great Recession in late 2009. According to analysis by the American Chemistry Council released May 13, that trend is expected to explode in the coming years, creating 462,000 jobs through the plastics supply chain.

    “The ready availability of large amounts of natural gas is giving the U.S. plastics industry really a renaissance, turning it from among the highest-cost producers to one of the lowest in the world, increasing manufacturing in the United States, increasing exports to markets that we were not exporting to before, and along with all that comes jobs,” said Steve Russell, vice president of ACC's plastics division. “We are about to see an incredible increase in output in our sector.”

    Of the potential $130 billion in overall new investment tied to the shale boom, the ACC report estimates the industry could draw as much as $47 billion in plastics-specific investment, $25 billion of that in new capacity investment alone. The report projects around 97,000 temporary jobs will be created at the peak of the construction phase, ultimately netting about 127,500 direct permanent jobs. Through supply chain impacts, an additional 172,900 indirect jobs will be supported through the supply chain at companies that supply materials, utilities, parts and services.

    Job creation will come in waves, the report predicts, starting with a peak in resin investment expected in 2018. Peak investment in ancillary chemistry and products manufacturing will follow in 2019, according to the report, including an additional 5,100 jobs created in the manufacturing of machinery, equipment and molds.

    Of the nearly 100,000 total jobs the report says will be supported by the build-out of the U.S. plastics industry, 30,000 jobs will be in construction and capital equipment manufacturing industries with another 29,000 supply chain jobs and 37,600 payroll-induced jobs expected to be generated in local communities throughout the country.

    Higher than average wages

    Not only will thousands of jobs be created, they will be high-paying jobs, said Russell.

    “Plastics materials makers pay workers on average nearly $85,000, which is more than 73 percent higher than the average wage for workers across U.S. industries,” he said.

    Of course high pay usually demands high skill levels as well, which could prove problematic in an industry already starved for talent. But Russell and Moore said the report and awareness of the shale boom already in the plastics industry means companies all the way through the plastics supply chain have a few years to target their employee searches and develop talent locally through partnerships with community colleges and vocational programs.

    While resin capacity increases will focus job growth in specific geographic areas — most notably Appalachia and the Ohio Valley — but the impact the increased resin supply will have on products “that's a lot more geographically diverse,” said Martha Moore, ACC's senior director of policy analysis and economics.

    “We see the bulk of it going into the Midwest as of today, partially reflecting trends in automotive,” Moore said. “But we see projects in just about every state.”

    Construction and packaging are particularly expected to benefit, as polyethylene and PVC are considered the biggest “winners” in terms of shale prices, along with some polypropylene products.

    The U.S. plastics job market is not alone. The shockwaves from the shale boom will be felt around the world with resin exports. The U.S. resin trade surplus is expected to triple by 2030, going from $6.5 billion in 2014 to $21.5 billion over the next 15 years with about half of the U.S.-produced resin being exported, primarily to South American and Asian processors, Moore said.

    RECOMMENDED FOR YOU
    Obituary: Inventor, Neutrex founder Arthur Haag
    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
    Tornadoes, severe weather impact Texas resin plants
    2
    Eastman posts lower profit, plans job cuts
    3
    Plastics firms work to eliminate PFAS use as pressure mounts
    4
    OSHA: Worker died at plastics firm after duct tape covered safety guards
    5
    Georgia home to new PET chemical recycling plant
    SIGN UP FOR OUR FREE NEWSLETTERS
    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
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. 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
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • 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
        • PN Live: Mergers and Acquisitions
      • 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
    • 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
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • 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