Plastics Machinery Shipments Up 5.9 Percent Y/Y in Q2 of 2018
The PLASTICS Committee on Equipment Statistics (CES) collects monthly data from manufacturers of plastic injection molding, extrusion, blow molding, hot runners and auxiliary equipment.
Washington, D.C. — Plastics machinery shipments in North America continued to increas in the second quarter of 2018 according to the statistics compiled and reported by the Plastics Industry Association’s (PLASTICS) Committon Equipment Statistics (CES). This is the fifth consecutive quarterly year-over-year (Y/Y) increase in plastics shipments.
The preliminary estimate of shipments of primary plastics equipment (i.e. injection molding and extrusion machines) for reporting companies totaled $335.2 million in the second quarter of 2018. This was a moderate increase of 1.6 percent from the $329.8 million revised figure in the previous quarter, but a 5.9-percent increase from Q2 of 2017.
After a strong Q1 Y/Y in 2018 shipment, Q2 moderated on a quarterly basis. “Plastics machinery shipments seemed to have hit a speed bump in the second quarter, but there’s no indication that shipments for the remainder of the year are trending down,” said Perc Pineda, chief economist at PLASTICS. “U.S. economic fundamentals remain strong. As the economy fast approaches—if it hasn’t already attained—full capacity, businesses will have to cope with tighter resources, particularly labor, and output increases will not be as robust as in previous periods.”
The shipments value of injection molding rose 4.5 percent in Q2 compared to last year. The shipments value of single-screw extruders increased 23.1 percent from the previous quarter. The shipments value of twin-screw extruders—which includes both co-rotating and counter-rotating machines—increased 80.0 percent. “We can expect to see continued uneven quarterly data moving forward, but by and large the outlook for plastics machinery remains positive,” Pineda added. (See graph below)
In the CES members second quarter survey, the percentage of respondents who reported that their customers were having difficulty obtaining financing for new equipment increased to 11.4 percent—a 7.4 percent increase from the first quarter, which is in sync with rising interest rates as U.S. monetary policy continues its gradual tightening. However, the remaining majority of respondents—88.6 percent reported no customer financing difficulty in the second quarter, which suggests financing rates were not cost prohibitive and financing for new plastics equipment remains largely accessible.
About PLASTICS Committee on Equipment Statistics (CES)
The PLASTICS Committee on Equipment Statistics (CES) collects monthly data from manufacturers of plastic injection molding, extrusion, blow molding, hot runners and auxiliary equipment. A confidential, third-party fiduciary, Vault Consulting, LLC, compiles the monthly data and analyzes individual company data for consistency and accuracy. Once this crucial process is completed, Vault aggregates and disseminates reports to participating companies. If this is something you and your company are interested in please contact Katie Hanczaryk at khanczaryk@plasticsindustry.org or 202-974-5296.
About Plastics Industry Association
The Plastics Industry Association (PLASTICS), formerly SPI, is the only organization that supports the entire plastics supply chain, representing nearly one million workers in the $404 billion U.S. industry. Since 1937, PLASTICS has been working to make its members and the industry more globally competitive while advancing recycling and sustainability. To learn more about PLASTICS’ education initiatives, industry-leading insights and events, networking opportunities and policy advocacy, and North America’s largest plastics trade show, NPE: The Plastics Show, visit plasticsindustry.org. Connect with PLASTICS on Twitter, Facebook and LinkedIn.
