Plante & Moran Launches 2007 Study of the North American Plastics Industry
By Jeff Mengel
Manufacturer, 2007 Issue No. 1 

Over the last ten years, Plante & Moran has conducted six surveys of the plastics processor industry throughout North America. More than 600 companies with more than 120,000 employees and close to $15 billion in sales participated in these surveys. The goal of these surveys is to identify emerging trends and key performance indicators of a successful company. One of the many trends has been an increase in productivity to offset increased costs (material, utilities, labor, and fringe benefits).

This trend is expected to continue. A processor suffers if it cannot increase its productivity faster than its competition and pass along the increase in costs. The industry is very fragmented with potentially 7,000 injection molders in North America. This fertile feeding ground of competition demands change, productivity, and above all, a well-thought-out strategy. Although, some molders appear very willing to take on any new work at any price they can find.

As you can guess, not all processors are equal. Some earn very good money (successful molders) while others struggle to break even (struggling molders). The other 50 percent of the population fall in between. Clearly, this is an industry where you must be top shelf to win. Successful molders do very well and will continue to enjoy their position within the industry.

Average molders squeak by as they “enjoy” all the stresses of running a business without the financial reward. Struggling molders need to radically alter their business model to stay alive for another day — but don’t wait. Time is one resource struggling molders do not have, as productivity improves and customers become more demanding.

Participate in the 2007 North American Plastics Industry Study

How do you stack up? Participate in the 2007 North American Plastics Industry Study (go to http://plastics.plantemoran.com) and receive a free confidential analysis of the most recent trends as well as a comparison of your company versus the industry. Information is one of the keys to success — use it.