The U.S. Plastics Industry – A Bellwether For American Manufacturing

The U.S. Plastics Industry –
A Bellwether For American
Manufacturing
December 2, 2015
Michael Taylor
Vice President, International Affairs and
Trade
Agenda



Defining the U.S. Plastics Industry
Shale Gas as a Game Changer
The State of the Industry



Domestically
Globally
Q&A
Defining The U.S. Plastics
Industry
Plastic
Materials
And
Resins
NAICS
325211
Upstream
Goods
and
Services
Plastics
Machinery
Plastic
Products
Gov’t
DocuMented
Plastic
Products
NAICS
3261 &
325991
NAICS
3332201
Molds for
Plastics
NAICS
33351105
Captive
Plastic
Products
Plastics Manufacturing Industry
plus Captive Plastic Products
Plastics Industry
Full Impact of Plastics
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Plastic
Materials
And
Products
Wholesaling
NAICS
424610
Downstream
Using
Industries
End Users,
Including
Consumers,
Businesses
And
Government
Agencies
Total Impact Of The Plastics
Industry On The U.S. Economy
Plastic
Materials
and
Resins
66,100 Jobs
$96.3 B
Upstream
Goods
and
Services
Plastics
Machinery
779,500 Jobs
$156.3 B
11,300 Jobs
$3.4 B
Molds for
Plastics
15,800 Jobs
$2.9 B
Plastic
Products
Gov’t
Documented
Plastic
Products
607,300 Jobs
$206.3 B
Plastic
Materials
and
Products
Wholesaling
33,400 Jobs
$48.5 B
Downstream
Using
Industries
End Users,
Including
Consumers,
Businesses
and
Government
Agencies
Captive
Plastic
Products
205,900 Jobs
$70.0 B
Sectors Quantified
Upstream
Impacts
Jobs and Shipments
Given for Each Segment:
Total Jobs = 1,719,300
Total Shipments = $583.7 Billion
Plastics Industry
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Game Changers Could Raise
U.S. GDP By 2020
Natural Gas Prices Have
Decoupled From Oil Prices
Key To North American
Petrochemical Competitiveness
Anticipated Wave Of Plastics
Industry Investment By Segment
Source: American Chemistry Council
Shale Energy: Economic
Contribution To Manufacturing
Economic Contribution Summary
Employment
Total Manufacturing
Aluminum
Steel
Plastics*
Fertilizers
Value Added ($M)
Total Manufacturing
Aluminum
Steel
Plastics*
Fertilizers
Labor Income ($M)
Total Manufacturing
Aluminum
Steel
Plastics*
Fertilizers
2012
2015
2020
2025
303,383
1,171
19,978
8,974
506
395,298
1,484
23,610
12,878
899
464,897
1,558
23,460
14,948
4,851
522,798
1,693
26,242
16,438
5,805
36,750
147
3,166
768
75
48,776
189
3,704
1,098
131
62,035
204
3,619
1,282
688
71,080
223
4,024
1,414
822
23,826
101
2,105
523
50
31,558
130
2,455
739
88
39,355
140
2,389
868
460
44,872
153
2,658
961
550
Includes NAICS Code 3261 (plastics); does not include rubber (3262) or resins (3252).
Source: IHS
Added Industrial Production As A
Result Of Shale Energy Development
2012
2020
Iron and Steel Products
2.2%
Resins and Synthetic
Materials
1.5%
Plastics and Rubber
Products
1.5%
Fabricated Metal Products
1.4%
Agricultural Metals
1.2%
Nonmetalic Minerals
1.2%
Petroleum and Coal
Products
Machinery
Total Manufacturing Average
Source: IHS
6.7%
1.7%
Basic Organic Chemicals
1.3%
7.4%
6.0%
8.1%
7.1%
4.1%
9.5%
4.6%
3.2%
4.8%
6.9%
3.5%
1.0%
0.4%
2025
7.7%
4.1%
5.8%
6.5%
3.3%
4.0%
3.5%
3.9%
The U.S. Plastics Industry
In 2014…
• 3rd largest industry in U.S.
• Record-breaking domestic demand
Up 6.0% to $298.3 billion
• Shipped more than $427.3 billion in
goods
• Employed 940,000 people
• Operated 16,806 facilities in every
U.S. state
U.S. Demand For Plastics Sets
New High Level
Apparent Consumption = Shipments + Imports – Exports
$350
$300
$ in billions
$250
$200
$150
$100
$50
$0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Machinery
Source: SPI “Global Business Trends” (2015)
Molds
Plastic Products
Resin
Final Consumption Of Plastic
Products 2014
Wholesale and
Retail Trade
5.6%
Other Durables
11.9%
Funiture & Related
2.4%
Health Services
7.4%
Transportation
Equipment
12.5%
Food Service & Drinking
Places
3.9%
Other Non-Durables
6.4%
Other Services
16.8%
Plastic Products
15.1%
Food,Tobacco &
Spirits
9.1%
Source: SPI “Size & Impact of the Plastics Industry on the U.S. Economy” (2015)
Construction
9.0%
U.S. TOTAL: $260.8 BILLION
U.S. Produced Goods
U.S. Produced Goods Retain Significant Market Share in the Industry Segments
100%
% Share
80%
79.6%
85.1%
82.7%
60%
59.7%
41.0%
40%
20%
0%
Resins
Source: SPI “Global Business Trends” (2015)
Products
Machinery
Molds
Total Industry
Plastics Have Historically Grown
Faster Than All Manufacturing
• Plastics manufacturing
employment grew 0.3 percent
per year since 1980
• The value of manufactured
shipments grew by 2.6
percent per year
• Real value added grew 2.3
percent per year
• Productivity grew by 2.3
percent per year
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Comparative Growth Rates 1980 - 2014
Plastics
Mfg
All Mfg
Employment
0.3%
-1.3%
Real Shipments
2.6%
0.8%
Real Value Added
2.3%
0.8%
Productivity Growth 2.3%
2.1%
Five-Year Running Productivity
Growth 1985-2014
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Real Value Of Shipments
Comparative Growth Rates
1980-2014
300
250
200
150
100
50
1980 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2014
Plastics Manufacturing Industry
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
All Manufacturing Industries
Real Value Added Comparative
Growth Rates 1980-2014
250
230
210
190
170
150
130
110
90
70
50
1980 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2014
Plastics Manufacturing Industry
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
All Manufacturing Industries
Employment Comparative
Growth Rate 1980-2014
180
160
140
120
100
80
60
40
1980 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2014
Plastics Manufacturing Industry
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
All Manufacturing Industries
Plastics Industry Employment
By Segment 2014
Wholesale (424610)
3.6%
Captive Plastics
Products
21.9%
Molds for Plastics
(33351105)
1.7%
Plastics Working
Machinery (3332201)
1.2%
All Other
50.5%
Plastics Materials &
Resins (325211)
7.0%
Plastics Bags
(326111)
2.6%
Plastics (Except Pkg)
Film & Sheet
(326113)
4.2%
Urethane & Other
Foam Products
(326150)
2.8%
Plastics Bottles
(326160)
3.7%
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
U.S. TOTAL: 939,855
Plastics Industry Employment
By State 2014
All Others
42.0%
New York
3.3%
North Carolina
3.9%
Wisconsin
4.2%
Texas
8.2%
Pennsylvania
5.1%
Indiana
5.2%
Illinois
5.4%
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
California
7.9%
Michigan
7.1%
Ohio
7.8%
U.S. TOTAL: 939,855
Plastics Industry Employment
2014 Breakdown By State
Rank
State
Plastics Employment
1
Texas
77,000
2
California
73,800
3
Ohio
73,700
4
Michigan
66,500
5
Illinois
50,600
6
Indiana
48,800
7
Pennsylvania
48,100
8
Wisconsin
39,200
9
North Carolina
36,300
10
New York
30,700
All Others
395,200
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Texas #6 Best State For
Business
Gross State Product
$1,648 Billion
At a Glance
Forbes Lists
Population: 27,187,700
Governor: Greg Abbott
Median Household Income:
$53,254
Job Growth (2015): 2.1%
Cost of Doing Business: 8%
below national average
College Attainment: 27.8%
Net Migration (2014): 239,100
Moody's Bond Rating: Aaa
#6 Best States for Business
#10 in Business Costs
#8 in Labor Supply
#21 in Regulatory
Environment
#1 in Economic Climate
#8 in Growth Prospects
#31 in Quality of Life
California #32 Best State For
Business
Gross State Product
$2,312 Billion
At a Glance
Forbes Lists
Population: 38,992,100
Governor: Jerry Brown
Median Household Income:
$61,750
Job Growth (2015): 2.8%
Cost of Doing Business:
11.5% above national
average
College Attainment: 31.8%
Net Migration (2014): 129,200
Moody's Bond Rating: Aa3
#32 Best States for Business
#42 in Business Costs
#17 in Labor Supply
#48 in Regulatory
Environment
#11 in Economic Climate
#5 in Growth Prospects
#30 in Quality of Life
Plastics Industry Employment
2014 States With Highest
Plastics Concentration
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
State Rankings Comparison
2014
Industry Employment
Plastics Concentration
Texas
Indiana
California
Michigan
Ohio
Ohio
Michigan
Wisconsin
Illinois
Kentucky
Indiana
South Carolina
Pennsylvania
Alabama
Wisconsin
Tennessee
North Carolina
North Carolina
New York
Iowa
Source: SPI “Size and Impact of the Plastics Industry on the U.S. Economy” (2015)
Plastic Is The Material Of Choice
For The Environment
Plastic Packaging Help Reduce The Amount Of Materials Used
•
Ecolean Liquid Packaging: These plastic pouches used for liquids such as milk and
juice can cut packaging weight by more than 50 percent. Flat as an envelope when
not filled, they take up little space in transit to food companies and when discarded.
Made with polypropylene and polyethylene plastic, the pouches use as much as 85
percent less energy to manufacture than conventional packaging, according to
Ecolean.
•
Bertolli® Pasta Sauce Pouches: These microwavable pouches use 70 percent less
material compared to glass jars and take up significantly less space in trucks,
especially when shipping unfilled packaging. Made from plastics and other materials,
one truckload of unfilled pouches equals 25 truckloads of unfilled jars, leading to less
energy use and fewer emissions.
•
Eco Pack Green Box: The Eco Pack is an innovative, reusable container for shipping
and displaying produce, meat, baked goods and other foods. An easy-to-assemble
plastic frame and plastic sleeves create a durable, stackable flat or tray that is half
the weight of cardboard. According to the manufacture, Eco Packs use up to 90
percent less energy than existing packaging and fit into existing distribution methods
(pallets, containers, trucks), from farm to store.
What Does A Life Cycle Analysis
Tell Us…
Plastic bags are greener
than paper bags, disposable
plastic cups have fewer
impacts than reusable
ceramic mugs, and owning
a dog is worse than driving
an SUV.
David Tyler is a chemistry
professor at the University
of Oregon.
2014 Trade Statistics
In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1
percent from 2013
RESINS
$35.1B
1.8%
PLASTICS
PRODUCTS
$25.0B
5.1%
MACHINERY
$1.5B
7.7%
$528.3M
10.1%
MOLDS
Source: SPI “Global Business Trends” (2015)
Positive
trade balance
of $10.4 billion
$51.7B
7.7%
Top Industry Export Markets
$30
Top Plastics Industry
Export Markets 2014
All Others
$23.5 billion
Mexico
$15.8 billion
Canada
$13.2 billion
China
$5.2 billion
Belgium
$2.4 billion
Brazil
$2.1 billion
Total
$62.1 billion
$20
$15
$10
$5
Mexico
Canada
China
Source: SPI “Global Business Trends” (2015)
Belgium
Brazil
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
$0
2002
U.S. $ Billions
$25
All Others
Opening Markets To The U.S.
Plastics Industry
Transatlantic Trade & Investment
Partnership (TTIP)
Trans-Pacific Partnership (TPP)
• 2014: U.S. plastics
industry exports to the 11
TPP countries were more Likely to be
Signed in NZ
than $34B
• Since 2000: plastics
exports to TPP countries
increased more than 91%
• 2014: plastics industry
trade surplus with TPP
countries was $13.7B
February 2016
11th Round
Miami Oct 19-23
• A high-standard TTIP
would advance trade and
investment liberalization
and address regulatory
and other non-tariff
barriers
• Based on 2011 trade
flows, the U.S. plastics
industry would be one of
the top benefiting sectors
with a total potential tariff
savings of $465M
U.S. Plastics Industry Trade
Balance By Segment 2000-2014
25
Billions of U.S. Dollars
20
15
10
5
0
-5
-10
2000
2002
Resins
Source: SPI “Global Business Trends” (2015)
2004
2006
Plastic Products
2008
2010
Molds
2012
Machinery
2014
U.S. Plastics Industry Trade
Balance By Segment For FTA
Partners 2000-2014
12
Billions of U.S. Dollars
10
8
6
4
2
0
-2
2000
2002
Resins
Source: SPI “Global Business Trends” (2015)
2004
2006
Plastic Products
2008
2010
Molds
2012
Machinery
2014
Growth Of Plastics – Industry
Exports
15%
10%
6.3%
5%
5.2%
4.9%
7.0%
6.3% 5.9%
4.8%
3.9% 3.5%
4.0%
4.2%
3.1%
2.6%
3.1%
2.7%
0.3%
0%
-0.03%
-2.8%
-5%
-4.6%
-7.5%
-10%
NAFTA
BRIC
Free Trade
Agreement
Countries
-8.5%
Asia
2012
Source: SPI “Global Business Trends” (2015)
2013
EU28
2014
Latin America
TOTAL
Top Export Growth Markets For
The U.S. Plastics Industry
Percentage Change
2013 to 2014
Percentage Change
2014 YTD to 2015 YTD
Cameroon
126.0%
32.6%
Slovenia
82.1%
65.8%
Angola
74.5%
23.0%
Qatar
58.4%
7.5%
Sweden
26.8%
40.4%
Poland
21.3%
10.3%
Jamaica
14.6%
2.1%
Vietnam
14.5%
14.1%
Dominican Republic
13.2%
1.1%
Switzerland
7.9%
8.4%
Top Export Growth Markets For
U.S. Resin
Percentage Change
2013 to 2014
Percentage Change
2014 YTD to 2015 YTD
Sweden
30.1%
27.0%
Vietnam
14.3%
20.2%
Bahrain
9.6%
3.3%
Thailand
7.5%
16.1%
Top Export Growth Markets For
U.S. Plastic Products
Percentage Change
2013 to 2014
Percentage Change
2014 YTD to 2015 YTD
Nigeria
108.6%
105.6%
Jamaica
35.1%
5.6%
Netherlands
26.3%
3.3%
Turkey
21.3%
23.3%
Poland
20.5%
9.2%
Qatar
19.3%
7.2%
UAE
12.4%
2.6%
Costa Rica
11.3%
4.6%
Saudi Arabia
11.2%
9.0%
Japan
11.2%
3.8%
Top Export Growth Markets For
U.S. Plastics Machinery
Percentage Change
2013 to 2014
Percentage Change
2014 YTD to 2015 YTD
Saudi Arabia
61.5%
14.5%
France
27.9%
17.6%
Germany
24.9%
10.1%
Hong Kong
20.9%
9.4%
Canada
0.2%
6.8%
Top Export Growth Markets For
U.S. Molds for Plastics
Percentage Change
2013 to 2014
Percentage Change
2014 YTD to 2015 YTD
Indonesia
1313.8%
104.8%
Hungary
1181.7%
799.1%
Colombia
208.4%
12.1%
Malaysia
42.6%
139.2%
Switzerland
37.4%
27.0%
South Korea
27.7%
59.4%
Australia
26.2%
0.5%
Plastics Market Watch
Packaging
• To be released in mid-December
Healthcare & Medical Devices:
• Released Fall 2015
Automotive & Transportation
• Released Spring 2015
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Coming next: Building & Construction (Jan 2016)
The U.S. Plastics Industry –
A Bellwether For American
Manufacturing
Michael Taylor
Vice President, International Affairs and
Trade
[email protected]
202-974-5232