Plastic & Rubber Product Manufacturing

Plastic & Rubber Product Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry engage in processing plastic materials and raw rubber to produce products such as plastic bags and bottles, plastic film and sheets, plastic pipe and foams, robber hoses, and tires. Major companies include US-based Berry Global Group, Cooper Tire & Rubber, Goodyear, and Newell Brands, as well as Amcor (Australia), Bridgestone (Japan), Michelin (France), Pirelli (Italy), and Reynolds Consumer Products (New Zealand).

COMPETITIVE LANDSCAPE

Because plastic products are widely used in industry and as consumer products, demand depends on the overall health of the economy. The profitability of individual companies depends on product mix and production efficiency. Large companies have economies of scale in buying raw materials and in manufacturing commodity products such as bottles and plastic film. Small companies can compete effectively by specializing.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include fabricated plastic products, accounting for about 30% of the industry's revenue. Other products include plastic bottles (about 20%) and car casings (15%), film and sheets (more than 10%), and unlaminated rolls (more than 10%). Companies also manufacture rods, tubes, plastic doors, partitions, moldings, windows, and frames.