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
    • Videos
    • Podcasts
    • 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
    • Notable Leaders in Sustainability
    • 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
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics Caps + Closures: A Global Online Event
    • Women Breaking the Mold Networking Forum
    • Bioplastics Live
    • Numbers that Matter Live
    • PFAS Live
    • Plastics in Politics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points 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
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
    • Europe - Virgin
    • Europe - Recycled
    • Europe - Feedstock
  • 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. Viewpoint
Viewpoint
December 06, 2018 01:00 AM

2019 likely to be challenging year for plastics machinery

Plastics News Report
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Rich Williams

    For plastics machinery, 2019 will be a challenging year, especially for injection presses, the biggest equipment category and a bellwether for the overall plastics industry.

    Thanks to tax reform, 2018 started with a lot of excitement in the equipment market. The big news was the immediate, 100 percent depreciation of capital investments for U.S. processors. This was supposed to spur machinery sales. Some experts even expected it to supercharge investment.

    But the days of processors buying machines in a speculative fashion, for business they expect to come, seem to be over. Now processors don't order injection molding machines unless they have orders in hand. Other machinery sectors with much longer lead times, like blown film lines, are more insulated from that harsh reality.

    The U.S. injection molding machine market held up in 2018, probably reaching the 4,000-unit level for shipments for a fourth year in a row, according to industry officials. Shipments probably dropped modestly, around 5 percent, they said.

    But what about the coming year? The automotive sector is the wave that lifts all boats when it comes to injection molding machinery. U.S. light vehicle sales have been at 17 million units for several straight years, and that high level has sparked investment in big-ticket, large-tonnage presses. But that glory period looks to be ending, with a modest decline expected in 2019. Already, large-tonnage machine sales were down this year, several industry officials said.

    Some other issues that will impact machinery sales in 2018 include:

    Tariffs and trade

    The backdrop for plastics equipment — and indeed, the entire U.S. manufacturing sector — is a trade war that consumed most of 2018. This included tariffs against Chinese goods and retaliation by China, tariffs on steel and aluminum which are the building blocks of machinery and molds, conflict over the North American Free Trade Agreement and threatened U.S. tariffs on automotive imports.

    President Donald Trump cranked up the volume — and the tweets — about global trade issues. Everything hitting at once caused uncertainty that dampened press buying for a few months around mid-year while plastic processors tried to figure it all out. Costs increased for components, molds and machinery from China.

    Early next year, NAFTA may be replaced with the United-States-Mexico-Canada Agreement. That could return some stability to North American manufacturing.

    The economy and the environment

    All eyes will be on the U.S. economy and, as the recent swoon in stock markets around the world shows, the global economy. Yes, United States manufacturing is largely still intertwined with the rest of the world.

    The fundamentals of the U.S. economy remains strong. Unemployment is just 3.7 percent — the lowest in nearly 50 years — and people are getting pay raises.

    Investors are looking closely at what the Federal Reserve Board will do about interest rates. If rates go up, higher mortgage rates will impact the construction sector, a major market for plastics that includes extruded window profiles, vinyl siding and pipe.

    Most injection molding machinery executives interviewed for our story said presses sold for new capacity far outweigh those sold for replacement. But as new machinery sales come under pressure from a slowing automotive sector, replacement sales will become more important, as well as the always-significant parts and service.

    Packaging continues to be a growing area for plastics. But the main question is whether negative publicity about single-use plastics will begin to impact the market, including machinery sales.

    Plastics remains a growing industry, full of innovation and forward-thinking people. Those attributes will be even more important in 2019, a year of change.

    You can read all the details this week in our machinery outlook package. Plastics News reporters Bill Bregar and Audrey LaForest interviewed 40 machinery company executives for the stories on Page 1 and Pages 8-13.

    RECOMMENDED FOR YOU
    When 3 percent equals $2B in sales
    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
    An 8,000-ton dream for Milacron, 20/20 Custom Molded Plastics
    2
    Braskem stops production on a PP line at Pennsylvania plant
    3
    Resin Prices - North America
    4
    Report: Tekni-Plex may be for sale
    5
    National bottle bill ‘could make sense,' senator says
    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.

    Find more newsletters at plasticsnews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    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
        • Notable Leaders in Sustainability
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
      • Podcasts
    • 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
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics Caps + Closures: A Global Online Event
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
      • Editorial Livestreams
        • Bioplastics Live
        • Numbers that Matter Live
        • PFAS Live
        • Plastics in Politics Live
        • PN Live: Mergers and Acquisitions
        • Polymer Points 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
    • 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
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
      • Europe - Virgin
      • Europe - Recycled
      • Europe - Feedstock
    • 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