It really is all about plastics

Welcome

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It really is all about plastics

Presented by Jeanna Van Rensselar

It really is all about plastics.

2Copyright Smart PR Communications

The plastic airplane parts you’ve seen at Boeing are proof of a huge sleeper market for hydraulic fluid in

the U.S.; plastic injection molding.


So why should you care?


You want to make more money.


You want to find an untapped industry that’s thriving.



plastic injection molding

The following 5 key points are what I’m going to cover

1. Demand for plastic injection molded parts is strong and growing steadily

2. What you need to know to be an expert on plastic injection molding

3. The 5 major markets for plastic injection molded products and why they are among the most robust

4. What plastic injection molders want in hydraulic fluid

5. Drilling down a little further into the U.S. market


Key Point 1: Demand for plastic injection molded parts is strong and growing steadily

In the U.S.• There are 20,000 plastics facilities that employ 1.5 million workers• Plastic processing is the 4th largest industry. • The U.S. plastic processing industry is nearly 2 times the size of the

entire European Union industry. • Injection molding is the dominant plastic process.


• The market for injection molded plastics is expected to increase 41% over 7 years.

• Polypropylene is the most widely used injection molded resin, accounting for about 25% of the total.

• The injection molded plastics market is fragmented with a large number of participants.

This is how the market is globally


Asia is the #1 market


Asia Pacific is the largest and fastest growing market with a 37% share and market revenue of $70 billion in 2013.

Europe is the #3 market


The recent drop in Europe is due to the increasing globalization of customers and the drive to reduce costs and rationalize production.

Here’s how the market and industryare at home


2 areas of concern1. The health of the plastic injection molding industry in the U.S. (affected by

both domestic sales and exports2. The domestic market for plastic injection molded parts in the U.S.; the

primary driver of the industry

Here’s what the market looks like in the U.S.

• Apparent consumption of plastics industry

goods grew 6.5% from 2012-2013.

• U.S. producers of plastic products held an 84%

domestic market share in 2013.


Here’s how the industry is in the U.S.


The U.S. has become more competitive for 4 reasons:

• Low wage inflation

• A lower-valued dollar

• Higher productivity

• Cheap energy

The future

Both of these cars have bodies made of plastic.One is a Mercedes-engineered Smart car.


Key Point 2: What you need to know to be an expert on plastic injection molding

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The history of plastic injection molding is relatively short


The roots of modern development goes back to the research of cellulose nitrate by American John Wesley Hyatt in the 1860s.

The commercial development of today’s major thermoplastics


World War II created a huge demand for plastics as substitutes for materials in short supply, such as rubber.

The introduction of alloys and polymer blends

Now it’s possible to tailor properties to fit specific performance requirements.


Plastics go high quality


The issue of molds


The success of any plastic injection molding process starts with the quality of the mold.

The mold-making process


The mold must be fluid tight to contain the molten plastic. Yet, at the same time, the mold must have venting features added to allow the air to escape.

Plastic injection mold-making is a very time-consuming process


Once the mold is designed, it takes a minimum of 4 weeks to create just the prototype mold and 12 weeks or more for the finished mold.

And it’s expensive

Molds can cost $100,000 and more; depending on:

• The core metal

• Part complexity

• The mold base

• Turnkey or vertically integrated mold builder


The machinery is simple and so is the process


Here’s a diagram of a basic hydraulic plastic injection molding machine.


Pellets like these are the most common ingredients


Raw materials constitute the major manufacturing expense; often equal to 50% of revenue

Here’s how it works.


But there is a lot of room for error


While the process itself is simple, controlling aspects such as the temperature and pressure and maintaining the integrity of the mold and finished product is complex.

There are more than 20,000 plastic formulations


Choosing the wrong formulation has led to costly product recalls. Mostly recently, it was a Kidde fire extinguisher with a plastic valve that broke off.

There are 12 common defects in plastic injection molded parts; 5 may

trace back to the hydraulic fluid


Burning

Contamination Short shot Haze

Warping

The cost of defective parts is high


Aston Martin had to recall 17,000 vehicles, which was about 75% of the cars it made over a 6-year period.

Most plastic injection molding machine OEMs offer either all 3 types; or hydraulic models and

either hybrid or all-electric alternatives.


Hydraulic

Electric

Hybrid

Electromechanical plastic injection molding machines are big in Europe and Asia and

gaining market share in the U.S.


Some say hybrids are the best of both worlds


Adding a servo to a hydraulic pump reduces the fluid volume by about 55%, but the main savings are from the ability to shut pumps down during cooling time, which can be extensive.

3D printing is here, but not ready for mass production


Other competing technologies


For thin-walled parts that hold things (disposable cups) and parts that consist of thick sheets of plastic (refrigerator liners) —thermoforming may make more sense.

Key Point 3: The 5 major markets for plastic injection molded products and hydraulic fluid

happen to be among the most robust


Packaging: This is the top market for plastics and also the fastest growing


•Healthcare •Restaurants•Shipping & Storage

Building & Construction: This is the 2nd largest market in the U.S.


•Structural and interior elements•Pipes, valves, & fittings•Buildings with sensitive electronics

Electronics: Cell phone and other mobile devices are major contributors


The continuing miniaturization of circuit boards and components, such as computer chips, depends on high-performance plastics.

Aerospace: Plastic are the key to weight reduction


Boeing's 787 Dreamliner is nicknamed the plastic airplane. The plane's fuselage is made of a new generation of reinforced composite plastic.

Transportation: Plastics solve complicated design problems


The fuel tank can now be designed around the structural components, rather than the other way around.

Key Point 4 : What plastic injection molders want in hydraulic fluid


Hydraulic fluid contamination is responsible for nearly 80 percent of all plastic injection molding machine issues.

There are 5 basic properties that hydraulic fluid for the plastic injection

molding industry must have.


• Viscosity index around 100

• Hydrolytic and thermal stability

• Foam control

• Filterability

• Anti-wear properties

Cleanliness, Filtration, Maintenance, and Condition Monitoring


It doesn’t do much good to provide customers with top quality hydraulic fluid if they don’t take care of it.

Pumps operating with contaminated fluid cause quality issues


There is no ideal hydraulic plastic injection molding machine filter. Because of this, experts say that contamination avoidance is the best strategy.

Predictive maintenance

6 basic tests: • Metals• Kinematic Viscosity• Acid Number• ISO 4406 Particle Count• Water• Oxidation


Key Point 5: Drilling down a little further into the U.S. market…


The plastic injection molding market in the U.S.

• Demand > overall health of the economy

• Profitability of individual companies > product mix and production efficiency


What the future looks like


Production equipment and new ways of producing plastics are constantly evolving. High-temperature, high-performance plastics are replacing aluminum, brass, steel, and other metals historically used in manufacturing.

There are 5 primary challenges to the market

• Demand depends on the economy

• Raw material price fluctuations

• Seasonal demand

• Shortened concept-to-market cycle

• Environmental concerns


The Neglected Captive Market


Captives are a big, but less recognized market for hydraulic fluid. You can uncover captive manufacturers by tracking plastic resins that are shipped to establishments with NAICS codes other than 3261.

The U.S. plastic manufacturing industry is fragmented


The 50 largest companies account for about 1/3 of sales and there are 100s of specialty companies.

This is where the industry is concentrated


Hoover’s sales contact prep questions skewed toward hydraulic fluid


Here’s a sample:1. Are the company’s plastic injection molding machines hydraulic or hybrid? 2. Does the company reclaim hydraulic fluid onsite or replenish and replace?3. How many plastic injection molding machines does it operate?4. About how much hydraulic fluid does each machine go through in a year?5. What kind of hydraulic fluid is the company using and where is it currently

getting it?6. What types of products does the company produce? 7. Which industries do its largest customers represent?8. How seasonal is the demand? 9. How much growth does the company expect in its major end-use markets?10. Does the company export? If so, to what countries?

Resources to help you get started


Assuming that you registered with Shell when you arrived, you’ll receive an emailed transcript of this presentation, which includes a list of resources.

Thank You!

Speaker’s contact information:Jeanna Van Rensselar

Smart PR Communications [email protected]

630-363-8081



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It really is all about plastics

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