Plastic Processing Industry in California

2019

Plastic Processing Industry in California

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Dear Reader,

the Italian Trade Agency’s (ITA) office in Chicago collaborated with Cedar

Management Consulting in preparing this report, in order to equip Italian

makers and traders of plastics processing machinery with information on

how to best approach the Californian Plastics Processing Industry.

This endeavor is in line with ITA’s mission to support and enhance the interaction between

Italian and foreign entities in the areas of trade, investment and innovation.

ITA’s offices in the USA are dedicated to opening new avenues in a vibrant market, where

competition is high but opportunities are plentiful. Please do not hesitate to reach out if

you would like to retain ITA as your preferred provider of strategic marketing services. With

a long and proven track record of satisfied customers, ITA is at your disposal to provide

economic and business information, find new counterparts, organize events and marketing

campaigns and much more.

We do hope that our research and our services prove beneficial to your potential actions

within the Californian market, where 6% of the country’s plastics and rubber production is

manufactured.

Last but not least, I would like to thank the team, from ITA Chicago and Cedar Consulting,

for its invaluable work in compiling this report and Amaplast, the Italian Plastics Processing

Machinery producers’ association, for its precious advice.

Marco Saladini

Trade Commissioner

Prepared by For

Cedar Management Consulting International LLC Italian Trade Agency – Chicago

401 North Michigan Avenue, Suite 1720

Chicago – IL 60611 USA

T + 1 312.670.4360

F + 1 312.670.5147

[email protected]

mailto:[email protected]

Italian Trade Agency

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Mapping of the Plastic Processing Industry in California Final Report | Introduction

OVERVIEW

This document is the final report mapping the California plastic processing industry presented to the Italian Trade Agency as part of a program undertaken by Cedar Management Consulting. The main objective is to analyse the plastics (primary focus) and rubber (secondary focus) processing and production industries, including consumption trends, production, import and export trends and end-user applications, as well as to develop comprehensive profiles of key companies in California.

The purpose of this report is to explore the potential end-user sectors for Italian plastic and rubber production and processing equipment manufacturers. This study will help Italian companies to align business plans, assess resource investments in the US, and support other activities of Italian manufacturers by providing key information for a fully detailed plastic processing equipment users’ database. In the accompanying database, California Plastic Processing Industry – Company Profiles, Cedar has prepared detailed profiles of 42 companies based in California or with plants in the state. The information included in these profiles is from secondary and publicly available sources as well as primary sources where possible. On a best-effort basis, Cedar interviewed by telephone key decision-makers at these companies. These interviews clarified and supplemented the secondary source information, adding qualitative factors driving decisions, future capital investment plans, market trends and other indicators of potential opportunity for Italian machinery exporters. Some of this valuable additional information is included in the detailed profiles and some of it is incorporated into the industry analysis. In addition to these more detailed profiles, Cedar has assembled basic data and contact information for 125 other companies with manufacturing operations in California.

CONTENT SUMMARY

1. Executive Summary and Methodology 2. Country Presentation 3. Overview of the Plastic Industry in the U.S. 4. Overview of the Rubber Industry in the U.S. 5. New Applications and Industry Challenges 6. California Plastics Industry Overview 7. Qualitative Overview 8. Analysis & Conclusion

List of Tables and Figures

Table and Figure Title Page

Shortlisted Company Profile Manufacturing/Technology Split 5

US Macroeconomic Data 6

US and California Trade Summary 7

US Share of GDP by Industry 8

US and California Manufacturing Summary 8

U.S. Plastics Market Raw Material Consumption Volume 2014-2019 9

Plastic Processing Industry in California - 2019

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U.S. Plastics Market Raw Material Consumption Volume, by Application Segment 2014-2019

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Demand for Plastic & Rubber Working Machinery in the United States 2013-2019

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United States Trade Data for Machinery for Working Rubber or Plastics (HTS Code 8477) 2013-2018

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Import Value of Plastic & Rubber Molds into US: 2015-2019 12

Value & Quantity of Plastic & Rubber Molds Imports from Italy : 2015-2019 12

Import Charges paid for Rubber & Plastic Molds from Italy : 2015-2019 12

Imports of Italian Plastic Machinery, Equipment and Related 2015-2019 13

Import Charges for Plastic and Rubber Machinery, Equipment and Related, 2015-19 15

Imports of Plastic & Rubber Machinery, Equipment and Related into the US from Italy 2015-2019 17

Plastics and Rubber Industry: Processing Machinery | Key Exporters to the U.S. | 2018 19

Plastics and Rubber Industry: Molds | Key Exporters to the US | Year 2018 20

United States Imports of Plastics and Articles Thereof (HTS Code Group 39) 2013-2018

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United States Exports of Plastics and Articles Thereof (HTS Code Group 39) 2013-2018

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United States Plastic Industry Number of Firms by Industry Sector 2015-2016 23

United States Plastic Industry Employment by Industry Sector 2015-2016 24

United States Imports of Rubber and Articles Thereof (HTS Code Group 40) 2013-2018

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United States Exports of Rubber and Articles Thereof (HTS Code Group 40) 2013-2018

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United States Rubber & Plastic Industry Number of Firms by Industry Sector 2015-2016 27

United States Rubber & Plastic Industry Employment by Industry Sector 2015-2016 28

California GDP | 2013 – 2018 29

California | Exports and Import Totals (2015-2018) 30

California Regions | GDP of Plastic and Rubber Products (2015) 30

California Plastic Industry | Concentration of Production by Location 31

California Plastic and Rubber Exports 2016-2018 31

List of standards by ANSI and SPI 32

Long-list of Custom Duties (Equipment, Parts & Machinery) 42

US states and their contribution to the US Plastics & Rubber GDP | Year: 2017 45

List of Leading Trade Associations for Plastics and Rubber Industry 45

List of Trade Shows and Magazines 46


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SCOPE

Products: Cedar has covered both plastic and rubber materials and plastic and rubber processing. Plastic Production and processing will be the primary focus and rubber production and processing a secondary focus. End-Use Markets: The focus has been on general manufacturing, automotive, packaging, toys, construction, appliances, medical, and others listed with the processing companies to be profiled. Geography: Cedar’s primary and secondary research and market data covers the whole US. Market data and demographic data has been provided for California state on a best-effort basis. Time Frame: Best efforts have been made to gather data for 2018 where possible with a 5-year historic timeframe. Best efforts were made to gather qualitative and quantitative forecast data wherever applicable.

1. Executive Summary and Methodology

EXECUTIVE SUMMARY

The plastic industry is the third largest manufacturing sector in the U.S., accounting for 4% of total manufacturing. Production is concentrated in packaging, consumer goods and construction. Geographically, production is concentrated in Texas (16.6%), Ohio (8%), and California (6.1%). Revenue growth overall has averaged 2% since 2012, with ABS usage growing at CAGR 5.6 % due to its applicability in consumer goods, and with polythene’s consistent consumption in the packaging industry. The near/medium term outlook is for some deceleration through 2021, reflecting trade tensions and slowing global growth. At the same time, the rubber industry is expected to be valued at $8.9 bn by 2021, with the demand for industrial rubber contributing a large share to this value. Labor costs dictate high capital intensity which has driven core machinery imports (HTC 8477) of ~USD 3.5 bn in 2018. Japan, Germany, and China are the largest exporters of plastic and rubber machinery to the US, while Italy has a strong representation across the vacuum molding/thermoforming machinery and extrusion machinery categories, accounting for 15% and 10% respectively in these categories. Key trends in the US plastics machinery market include consistent demand for injection molding machinery due to its ability to produce high volumes in the packaging and automotive sector. The automotive sector growth has accelerated demand for vacuum molding machinery and extrusion machinery. With the recent China ban on imported plastic for recycling, US domestic investments are growing, additionally driven both by consumer demand and state legislation. For example, California, which by virtue of its market size can drive national environmental standards, is considering legislation requiring that by 2030 all single-use plastics be recyclable or decomposable. Consumer demand for environmentally friendly products and a growing awareness of the climate impact of carbon intensive plastics is driving recycling and forcing plastic companies to change


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practices, encouraging trends toward oxo-biodegradable options, 3D printing, plant-based plastics and bio resins. California is the largest plastic employer in the U.S., with 79,520 people directly employed. Nationally, California is ranked 3rd in plastic shipments, accounting for 6.1% of shipments in the U.S. Company Interview Summary Through surveys and telephone interviews, Cedar engaged with key decision-makers at ~35 medium to larger scale companies in California. Overall performance for 2018-19 was good for these companies compared to 2017-18 and most are moderately optimistic about the next 12-18 months, assuming trade frictions abate. Though none of the respondents were willing to share specific information regarding investment plans and new machinery requirements, several consistent themes emerged:

• Market outlook: Consistent growth across all sectors with some acceleration in the food

packaging sector as consumers shift to sustainable packaging.

• End – user application: ~70% of respondents saw aerospace and medical demand for

specialty plastic components as an opportunity over the next 3-5 years.

• Environmental and carbon-reduction technology innovation in the construction and

automotive sector will drive demand for specialized and higher-performance plastic and

rubber processing

• Machinery investment: Growing focus on automation technology when considering new

investment. Cost constraints driving retrofitting where possible, particularly where

demand outlook is clouded by trade tensions.

• Automation: ~75% of respondents saw competitive advantage in automation, networking

and digitization, resulting in significant new investments in robotic technologies.

METHODOLOGY

Cedar used a methodology combining research of public company information and primary research.

• Accessed company websites, public databases and trade journals including Plastics News.

• For US national and state data on plastics and rubber, Cedar used the United States International Trade Commission, World Bank, the US Federal Reserve, the US Census Bureau, Plastics News and other secondary sources. Cedar used the latest data nationally and by state on plastic and rubber manufacturing.

Cedar conducted the research and report preparation in five phases:

Phase 1: Program orientation and complete debrief with ITA to confirm objectives and deliverables as well as methodological constraints.

Phase 2: Secondary source research, including a review of Cedar’s extensive non-proprietary database; development of California company database and target interview list with input from ITA.


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Phase 3: Preparation and delivery of an interim report outlining preliminary analysis and insight and a final list of target companies; preparation and initiation of survey; initial outreach to target companies to refine approach and key questions.

Phase 4: Finalize survey and collate results, incorporating where relevant into analysis and profiles; direct interviews with key decision-makers on the target list.

Phase 5: Prepare and deliver final report and database, including detailed profiles of shortlisted California-based plastics processing companies incorporating all information gathered through secondary and best-effort interviews.

Note on Interviews and Survey: Together with ITA, Cedar developed a shortlist of 72 plastics processing companies with production in California and made every effort to identify key decision-makers and conduct detailed telephone interviews seeking both broader qualitative information on the industry, trends, challenges and outlook as well as company specific data on installed machinery, output, investment plans and the like. As anticipated from the outset, this latter information was often deemed proprietary and interviewees were reluctant to share it. In total, Cedar was able to engage key decision-makers at ~35 companies for substantive interviews. The distribution by technology of the shortlisted companies is outlined in the following table:

# Shortlisted Company Profile Manufacturing/Technology Split # Companies

1 Blow Molding 11

2 Extrusion Molding 9

3 Fabrication 7

4 Injection Molding 26

5 Rotational Molding 8

6 Thermoforming 10

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Others - Tooling, Vaccum Molding/Forming, 3D Printing, Manufacturing, Compression Molding, Pressure Molding/Forming, Liquid Injection Molding, Molding/Mold Making, Custom Molding, Film and Sheet, Plastic Molding

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In addition to these interviews, Cedar conducted a detailed survey using Survey Monkey and targeting the approximately 225 California companies in the database for which individual emails were available. As anticipated, though the response rate for this survey was extremely low, some information was gleaned and incorporated into the profiles and the broader industry analysis.

Best Efforts

This program was undertaken on a “Best Efforts” basis only. “Best Efforts” is defined below:

• Much of the company information requested by ITA is considered confidential and proprietary by US companies.

• In numerous cases, companies have policies that forbid employees from speaking with outside firms about their companies.


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• “Best Efforts” means that Cedar makes every attempt to obtain and confirm accurate and complete information from secondary public sources and from interviews with company personnel.

• Cedar cannot warrant or guarantee the completeness and accuracy of this company information.

2. Country Presentation

2.1 MACROECONOMIC FACTORS

• The United States remains the largest economy in the world with GDP expected to approach $21.5

trillion in 2019, reflecting still relatively robust 2.2% growth over 2018, though decelerated from 3%

growth in 2018.

• The current expansion recently entered an unprecedented eleventh year and unemployment has

fallen to just 3.6%, the lowest since 1969. However, trade tensions and policy uncertainty have led

to forecasts of recession in the next 12-18 months. By some measures, manufacturing is already in

recession nationally.

• California is the most populous state with the largest economy in the United States, valued at ~$3.0

trillion in 2018 and ranked 5th in the world behind United States, China, Japan and Germany.

• For most of the last decade the state’s economic growth has surpassed that of the US annually and

is projected to grow at ~2% over the 2020 to 2022 period.

• California’s economy is highly diversified with the manufacturing sector accounting for 10.7%.

US Macroeconomic Data

# Parameter 2013 2014 2015 2016 2017 2018 2019P 2020F

1 United States GDP

($ trillion, current USD) 16.79 17.52 18.22 18.71 19.49 20.49 21.44 21.86

2 California GDP

($ trillion, current USD) 2.26 2.40 2.56 2.66 2.91 2.97 3.13 3.25

3 California GDP as % of

United States GDP 13.46% 13.70% 14.05% 14.22% 14.42% 14.49% 14.59% 14.86%

4 United States Population (mn) 316.06 318.39 320.74 323.07 325.15 327.17 329.45 330.17

5 California Population (mn) 38.28 38.63 38.95 39.21 39.40 39.56 39.55 39.60

6 California Population % 12.11% 12.13% 12.14% 12.14% 12.12% 12.09% 12.01% 11.99%

2.2 UNITED STATES TRADE

• The current administration’s trade war with China and trade tensions with other major partners has

cast a shadow over the global trade and economic growth with the IMF projecting a 0.8%

deceleration of global growth. Global supply chain disruption and investment climate uncertainty

slowed trade growth to just 1% in the first half of 2019, the lowest level since 2012.

• The European Union is one of the US’s largest trading partners, accounting for 13.7% of exports and

19.2% of imports. Key imports from the region include pharmaceuticals (~USD 71 bn) and motor

Figure 1; Source: State of California Department of Finance, Forbes, USGovtSpending.com, World Population Review


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vehicle-related imports (~USD 58 bn), with machinery, excluding electrical and computer

equipment, ranked third at ~USD 51.9 bn.

• The top 5 U.S. import suppliers from the EU in 2018 were:

- Germany (USD 125.9 bn)

- UK (USD 60.8 bn)

- Italy (USD 54.7 bn)

- France (USD 52.5 bn)

- Netherlands (USD 24.6 bn)

• California is the largest importing state accounting for ~18% of total imports but the state is not

immune to the macroeconomic trends with imports projected to decelerate from 17.2% in 2019 to

16.6% in 2020.

US and California Trade Summary:

# Parameter 2013 2014 2015 2016 2017 2018

1 United States Imports of Goods

($ trillion, current USD) 2.27 2.36 2.25 2.19 2.34 2.54

2 California Imports of Goods

($ billion, current USD) 395.76 403.50 408.34 410.06 440.25 441.02

3 California Imports as % of

United States Imports 17.43% 17.10% 18.15% 18.72% 18.81% 17.36%

4 United States Exports of Goods


5 California Exports of Goods


6 California Exports as % of

United States Exports 12.77% 10.75% 11.02% 11.26% 11.09% 10.67%

2.3 UNITED STATES MANUFACTURING

- At $2.33 trillion, manufacturing

accounted for ~11% of U.S. GDP in

2018.

- Manufacturing growth in California has outpaced the national rate and currently accounts for roughly 13% of overall manufacturing output. - However, the state accounts for only

~6% of the United States’ plastic and

rubber manufacturing.

*Other: Mining, utilities, agriculture, forestry, fishing and hunting, other services except government, arts, entertainment,

recreation, accommodation and food services.

Figure 2; Source: United States International Trade Commission

21%18%

12%

11%12%9%

7%

10%

United States Share of GDP by Industry (2018)

Finance, insurance, real estate, rental and leasingProfessional and business services and InformationGovernmentManufacturingTotal tradeEducational services, health care and social assistanceConstruction, transportation and warehousingOther

Figure 3; Source: US Census Bureau


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US and California Manufacturing Summary

# Parameter 2013 2014 2015 2016 2017 2018

1 United States Manufacturing GDP


2 California Manufacturing GDP


3 California Manufacturing GDP as % of

United States Manufacturing GDP 12.58% 12.90% 13.20% 13.56% 13.71% 13.59%

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United States Plastic & Rubber

Manufacturing Output

($ billion, current USD)

68.98 67.02 77.58 80.51 82.81 N/A

5 US Plastic & Rubber as a % of US

Manufacturing GDP 3.5% 3.3% 3.7% 3.9% 3.8% N/A

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California Plastic & Rubber Manufacturing

Output

($ billion, current USD)

4.26 4.11 4.91 4.81 4.90 N/A

7 California % of United States Plastic &

Rubber Manufacturing Output 6.18% 6.13% 6.33% 5.97% 5.92% N/A

• California is ranked no.1 in Plastics Industry Employment, with most people being employed in

manufacturing of Plastic Products

• California’s contribution to the US plastic and rubber manufacturing output has been gradually

declining y-o-y. While US plastic & rubber manufacturing output has grown from 77 bn in 2015 to

83 bn in 2017, California plastic & rubber manufacturing output has stayed flat at 4.9 bn over the

same period.

•

3. Overview | Plastic Materials & Rubber Industry in the U.S.

3.1 RAW MATERIALS

• The U.S. consumption of plastic raw material is estimated to be 51.04 mn tons in 2019.

• Polyethylene (PE) is the most consumed raw material in the U.S. market due to its widespread

applicability in packaging, historically accounting for 31.7% of all raw material consumed, by

weight, between 2014 and 2019.

• Accelerating ABS usage (with a CAGR of 5.6% from 2014 to 2019) is driven by an increase in

demand for consumer goods and home appliances, largely because of its superior luster and

formability characteristics.

• Off a much higher base, consumption of Polyethylene consumption growth has been a more

modest 2.8% during the same period.

• One of the biggest contributors to Others* is polycarbonate

Figure 4; Source: US Census Bureau, State of California Department of

Finance


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Plastics Industry: Consumption

U.S. Plastics Market Raw Material Consumption Volume 2014-2019 (Kilo Tons)

2014 2015 2016 2017 2018 2019P

Polyethylene 13948.1 14494.7 15078.6 15387.1 15703.2 16027.2 31.7%

Polypropylene 9632.9 10059.5 10516.1 10784.1 11060.0 11344.1 22.2%

PVC 2964.0 3098.5 3242.7 3328.8 3417.6 3509.1 6.8%

Polyurethane 6538.2 6774.5 7026.5 7148.9 7273.7 7401.1 14.7%

PET 3792.2 3923.8 4064.0 4128.8 4194.8 4262.0 8.5%

Polystyrene 2955.3 3109.9 3275.9 3384.8 3497.4 3613.8 6.9%

ABS 1089.7 1163.9 1243.9 1303.3 1365.1 1429.2 2.6%

Others* 2667.6 2841.7 3028.9 3166.0 3308.2 3455.5 6.4%

Total 43588.0 45466.5 47476.6 48631.8 49820.0 51042.0

*Others: PBT, Polyphenylene, Epoxy Polymers, LCP, PEEK, Polycarbonate, Polyamide, Polysulfone, PPSU.

Plastics Industry: Applications

U.S. Plastics Market Raw Material Consumption Volume, by Application Segment 2014-2019 (Kilo Tons)

2014 2015 2016 2017 2018 2019P

Packaging 18089.0 18841.3 19645.8 20094.7 20555.7 21029.3 41.3%

Construction 7845.8 8161.2 8498.3 8680.8 8868.0 9060.0 17.9%

Electrical & Electronics 1743.5 1841.4 1946.5 2018.2 2092.4 2169.3 4.1%

Automotive 1743.5 1877.8 2022.5 2134.9 2251.9 2373.5 4.3%

Medical Devices 1525.6 1605.0 1690.2 1745.9 1803.5 1863.0 3.6%

Agriculture 435.9 463.8 493.7 515.5 538.1 561.5 1.1%

Furniture & Bedding 435.9 450.1 465.3 471.7 478.3 484.9 1.0%

Consumer Goods 11332.9 11775.8 12249.0 12498.4 12753.8 13015.6 25.7%

Others 435.9 450.1 465.3 471.7 478.3 484.9 1.0%

Total 43588.0 45466.5 47476.6 48631.8 49820.0 51042.0

• The U.S. consumption of plastic raw material is estimated to be 51.04 mn tons in 2019.

Figure 5; Source: Grand View Research

Figure 6; Source: Grand View Research


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• Polyethylene (PE) is the most consumed raw material in the U.S. market due to its widespread

applicability in packaging, historically accounting for 31.7% of all raw material consumed, by

weight, between 2014 and 2019.

• Despite historically accounting for just 4.3% of plastic raw material consumption, the automotive

sector is showing the fastest plastic raw material consumption growth (CAGR of 6.4%), driven by

China-related automotive growth and, importantly for the US automotive plastics sector, fuel

efficiency-driven materials substitution (by 2020, the average car will incorporate 350 kg of plastic

raw material, up from 200kg in 2014). Polypropylene, PVC, Polyurethane are primarily used in the

automobile sector.

• Accelerating ABS usage (with a CAGR of 5.6% from 2014 to 2019) is driven by an increase in

demand for consumer goods and home appliances, largely because of its superior luster and

formability characteristics.

• Off a much higher base, consumption of Polyethylene consumption growth has been a more

modest 2.8% during the same period.

• One of the biggest contributors to Others* is polycarbonate

3.2 PROCESSING MACHINERY

• Demand for plastic and rubber machinery is at ~$7.1 bn and has grown at a CAGR of ~4%.

• Injection molding is the most used machinery type, due to its widespread application for mass

production processes, and constitutes ~22% of total machinery demand.

• Vacuum molding machinery demand is growing at a CAGR of 6% and has wide applications in

agriculture, automotive parts & packaging. Extrusion machinery demand is growing at ~4.5% and

has wide applicability in industrials & automotive parts. They present a higher than industry

average growth opportunity.

Plastics and Rubber Industry: Machinery Consumption

Demand for Plastic & Rubber Working Machinery in the United States 2013-2019 (USD million)

# Machinery Type 2013 2014 2015 2016 2017 2018 2019P Contribution

1 Injection Molding 1121.6 1294.6 1346.3 1412.4 1451.9 1507.1 1542.6 22%

2 Extrusion 351.7 401.1 406.3 426.0 431.5 447.7 455.3 6%

3 Blow Molding 250.0 272.3 277.7 294.6 295.5 305.2 300.3 4%

4 Vacuum Molding &

Thermoforming 122.1 141.2 146.8 161.6 164.9 173.7 172.9 2%

5 Tire Molding and

Retreading* 178.7 198.7 212.8 199.7 207.8 199.9 213.9 3%

6 Others 1076.2 1230.5 1266.4 1314.4 1347.2 1392.8 1423.0 20%

7 Parts for

Machinery 2504.1 2727.1 2779.5 2803.3 2868.5 2903.1 2951.2 42%

Total 5604.4 6265.4 6435.9 6612.0 6767.4 6929.5 7059.3 100%


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*Specifically, for rubber. Note that machinery demand data has been found for both plastic & rubber machinery in USA

Plastics and Rubber Industry: Processing Machinery | Trade Data

United States Trade Data for Machinery for Working Rubber or Plastics (HTS Code 8477)

2013-2018 (USD million)

# Description 2013 2014 2015 2016 2017 2018 CAGR

1 Import 2737.8 2785.2 3094.4 3131.2 3482.5 3506.7 5.1%

2 Export 1571.3 1745.8 1610.3 1626.4 1619.3 1671.8 1.2%

3 Re-Export 182.0 227.9 250.9 256.1 247.9 293.2 10.0%

*HTS Code 8477 – Machinery for working rubber or plastics or for the manufacture of products from these materials.

• US imports of plastic and rubber machinery are growing at a 5.1% CAGR while exports are growing at

merely 1.2% over 2013 to 2018.

• US re-exports globally of plastic and rubber machinery are growing at a 10% CAGR over 2013 to

2018.

• China remains the largest exporter of plastic items, tools and machinery to the US, with the largest

market share at ~25% as of 2018.

Imports of Rubber & Plastic Molds to the US | 2015 – 2019 Import Value of Plastic & Rubber Molds into US: 2015-2019 ((Values in $Mn)

HTS Code Description 2015 2016 2017 2018 2019

Total Italy Total Italy Total Italy Total Italy Total Italy

8480.71 Molds for Rubber or Plastics, Injection or Compression types

1,550.59 29.36 1,607.22 29.38 1,950.43 35.70 2,037.60 30.14 1,844.83 26.95

8480.79 Molds for Rubber or Plastics, Other than Injection or Compression types

182.84 5.21 190.96 8.27 212.65 9.67 250.64 15.91 208.92 12.59

Total 1,733.43 34.57 1,798.18 37.65 2,163.08 45.37 2,288.24 46.05 2,053.74 39.54

Italian share of Total Imports 1.99% 2.09% 2.10% 2.01% 1.93%

Figure 9; Source: US International Trade Commission TradeTraCommision

Figure 7; Source: Global Research & Data

Services

Figure 8; Source: UN Comtrade Database


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Value & Quantity of Rubber & Plastic Mold Imports from Italy | 2015 – 2019

Value & Quantity of Plastic & Rubber Molds Imports from Italy : 2015-2019 (Amount in $, Qty in Units)

HTS Code Description

2015 2016 2017 2018 2019 % ∆ in Value (2018-

19)

% ∆ in Qty

(2018-19)

Value Qty Value Qty Value Qty Value Qty Value Qty

8480.71

Molds for Rubber or Plastics, Injection or Compression types

29,357,510 57,623 29,381,315 92,191 35,703,475 25,591 30,138,783 25,320 26,950,930 33,570 -10.58% 32.58%

8480.79

Molds for Rubber or Plastics, Other than Injection or Compression types

5,209,880 15,636 8,265,663 82,940 9,669,074 44,576 15,911,329 428,487 12,585,643 82,218 -20.90% -80.81%

Total 34,567,390 73,259 37,646,978 175,131 45,372,549 70,167 46,050,112 453,807 39,536,573 115,788 -14.14% -74.49%

Import Charges paid for Rubber & Plastic Mold Imports from Italy | 2015 -2019

Import Charges paid for Rubber & Plastic Molds from Italy : 2015-2019 (Amt in $)

HTS Code Description 2015 2016 2017 2018 2019 % ∆ 2018-19

8480.71 Molds for Rubber or Plastics, Injection or Compression types

872,497 573,541 837,600 1,132,867 544,021 -51.98%

8480.79 Molds for Rubber or Plastics, Other than Injection or Compression types

166,892 284,548 379,432 300,357 331,220 10.28%

Total 1,039,389 858,089 1,217,032 1,433,224 875,241 -38.93%

US Imports of Rubber and Plastic Machinery, Equipment and Related from Italy | 2015 – 2019

Imports of Italian Plastic Machinery, Equipment and Related 2015-2019 (value in $Mn, qty in units)

HTS Code Description Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 %∆ in

Value 2018-19

%∆ in Qty 2018-19 Value Qty Value Qty Value Qty Value Qty Value Qty

8477.10.3000 For manufacturing shoes

3.10 105 2.86 135 4.42 171 0.61 15 1.93 15 214.85% 0%

8477.10.4000 For use in the manufacture of optical media

0.00 0 0.05 3 0.00 0 0.00 0 0.00 0 N/A N/A

8477.10.9015

Of a type used for processing rubber or other thermosetting materials

8.99 96 14.96 80 9.58 108 8.33 220 5.60 64 -32.74% -70.91%

8477.10.9030 With a clamp force less than 50 tons

18.55 120 3.23 168 4.58 96 1.32 68 0.72 28 -45.09% -58.82%

8477.10.9040

With a clamp force equal to or greater than 50 tons and less than 300 tons

10.75 76 2.60 16 4.26 24 0.63 8 0.00 0 -100% -100%

8477.10.9050


2.78 68 17.20 116 10.56 20 14.49 24 25.15 56 73.54% 133.33%

8477.10.9060 With a clamp force equal to or greater than 750 tons

7.00 124 0.00 0 9.37 16 13.12 100 4.87 88 -62.88% -12%

8477.20.0005 Extruders: Single Screw

3.60 21 3.01 33 3.60 36 8.08 42 5.00 9 -38.15% -78.57%




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8477.20.0015 Extruders: Multiple Screws

13.74 60 17.60 84 22.88 198 23.22 249 16.80 432 -27.66% 73.49%

8477.20.0035 Extruders: Less than 6.4 cm

0.63 3 2.84 39 1.36 6 0.00 0 5.36 27 N/A N/A

8477.20.0045 6.4 cm or greater 4.62 21 6.38 27 12.20 42 28.56 78 20.51 57 -28.20% -26.92%

8477.20.0055 With a screw size less than 6.4 cm

0.20 3 1.50 9 0.00 0 4.01 27 1.54 9 -61.71% -66.67%

8477.20.0065 With a screw size 6.4 cm or greater

14.44 33 13.92 150 14.36 27 36.78 54 50.76 126 38.01% 133.33%

8477.30.0000 Blow-molding machines

41.67 186 20.93 62 35.62 140 58.23 190 34.22 98 -41.24% -48.42%

8477.40.0100

Vacuum-molding machines and other thermoforming machines

29.29 165 48.98 255 31.47 360 54.73 183 40.92 552 -25.23% 201.64%

8477.51.0010 For molding or retreading pneumatic tires

14.21 204 16.16 318 15.20 324 6.22 336 8.99 255 44.53% -24.11%

8477.51.0090 Other 0.50 12 1.13 8 4.74 30 1.47 46 0.77 2 -47.78% -95.65%

8477.59.0100 Other 17.83 411 25.42 618 23.23 327 18.95 204 11.04 190 -41.73% -6.86%

8477.80.0000 Other machinery 82.48 5,968 48.77 11,904 78.87 7,890 67.44 4,958 121.26 9,000 79.81% 81.52%

8477.90.2540

Machinery for Working Rubber or Plastics, Parts, Base, Bed, Platen Etc of machines of subheading 8477.10.30, 8477.10.40 or 8477.10.90

15.86 0 17.04 0 12.18 0 10.75 0 6.05 714,884 -43.78% N/A

8477.90.2580 Other 8.19 0 9.77 0 19.40 0 22.05 0 22.98 7,591,824 4.22% N/A

8477.90.4501 Barrel screws 0.12 0 0.19 0 0.47 0 0.56 0 0.26 8,450 -53.68% N/A

8477.90.6500

Hydraulic assemblies incorporating more than one of the following: manifold; valves; pump; oil cooler

0.93 0 0.43 0 1.02 0 2.31 0 0.49 158,356 -78.90% N/A

8477.90.8501 Of injection-molding machines

22.68 0 28.69 0 26.62 0 24.31 0 25.15 6,144,960 3.42% N/A

8477.90.8520 Of extruders 20.83 0 20.00 0 31.38 0 19.38 0 30.04 4,308,432 55.02% N/A

8477.90.8530 Of blow-molding machines

8.75 0 11.15 0 11.07 0 14.97 0 7.05 47,754 -52.93% N/A

8477.90.8540 Of machines for forming pneumatic tires

5.03 0 7.26 0 6.21 0 5.77 0 2.53 2,541,660 -56.21% N/A

8477.90.8595 Other parts 38.30 0 44.75 0 55.21 0 70.80 0 76.79 20,338,330 8.47% N/A

Total 395.04 7,676 386.81 14,025 449.86 9,815 517.09 6,802 526.76 41,865,658 1.87% 615,390.41%



17

Import Charges paid for the import of Rubber and Plastic Machinery, Equipment and Related to the US | 2015 – 2019

Import Charges for Plastic and Rubber Machinery, Equipment and Related, 2015-19 (Amt in $)

HTS Code Description Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 % Change

2018 - 2019

8477.10.3000 For manufacturing shoes 72,225 51,804 82,437 21,510 46,311 115.30%


0 132 0 0 0 N/A

8477.10.9015 Of a type used for processing rubber or other thermosetting materials

215,172 382,088 264,240 278,116 43,292 -84.43%

8477.10.9030 With a clamp force less than 50 tons 220,680 67,152 53,804 38,720 29,988 -22.55%

8477.10.9040 With a clamp force equal to or greater than 50 tons and less than 300 tons

315,560 49,024 104,004 6,520 0 -100%

8477.10.9050 With a clamp force equal to or greater than 300 tons and less than 750 tons

44,400 149,968 51,124 208,000 378,852 82.14%

8477.10.9060 With a clamp force equal to or greater than 750 tons

42,004 0 154,000 21,316 32,000 50.12%

8477.20.0005 Extruders: Single Screw 271,404 106,071 12,132 181,164 12,000 -93.38%

8477.20.0015 Extruders: Multiple Screws 214,479 172,788 496,416 165,477 224,655 35.76%

8477.20.0035 Extruders: Less than 6.4 cm 10,650 59,040 9,003 0 44,739 N/A

8477.20.0045 6.4 cm or greater 205,431 105,300 82,515 305,103 330,342 8.27%

8477.20.0055 With a screw size less than 6.4 cm 9,282 40,164 0 18,000 26,694 48.30%

8477.20.0065 With a screw size 6.4 cm or greater 128,814 183,321 317,871 1,269,327 609,795 -51.96%

8477.30.0000 Blow-molding machines 437,974 257,982 506,968 751,030 415,722 -44.65%

8477.40.0100 Vacuum-molding machines and other thermoforming machines

979,824 863,835 623,616 622,002 1,128,069 81.36%


18


249,177 251,667 208,770 118,014 136,500 15.66%

8477.51.0090 Other 15,250 19,792 38,776 11,484 984 -91.43%

8477.59.0100 Other 335,958 321,405 385,702 367,991 360,157 -2.13%

8477.80.0000 Other machinery 1,522,584 1,091,212 2,051,156 1,516,152 4,124,774 172.06%

8477.90.2540


398,692 470,068 406,428 455,320 123,168 -72.95%

8477.90.2580 Other 253,260 469,893 916,644 1,182,303 1,204,425 1.87%

8477.90.4501 Barrel screws 8,946 8,188 12,320 14,846 63,288 326.30%

8477.90.6500 Hydraulic assemblies incorporating more than one of the following: manifold; valves; pump; oil cooler

35,712 7,926 13,626 99,400 17,580 -82.31%

8477.90.8501 Of injection-molding machines 586,905 685,266 598,605 650,532 865,866 33.10%

8477.90.8520 Of extruders 707,496 724,737 713,697 799,236 896,619 12.18%

8477.90.8530 Of blow-molding machines 316,260 201,207 330,111 665,388 228,759 -65.62%

8477.90.8540 Of machines for forming pneumatic tires 229,656 343,467 386,784 399,765 222,846 -44.26%

8477.90.8595 Other parts 1,335,222 1,521,108 1,796,714 2,572,744 2,129,526 -17.23%

Total 9,163,017 8,604,605 10,617,463 12,739,460 13,696,951 7.52%



19

Imports of Rubber & Plastic Machinery, Equipment and Related into the US from Italy| 2015 – 2019

Imports of Plastic & Rubber Machinery, Equipment and Related into the US from Italy 2015-2019 (Values in $Mn)

HTS Code Description

2015 2016 2017 2018 2019

Total Italy Total Italy Total Italy Total Italy Total Italy

8477.10.3000 For manufacturing shoes

16.65 3.10 14.01 2.86 17.17 4.42 8.41 0.61 4.81 1.93


3.09 0.00 1.89 0.05 2.88 0.00 2.20 0.00 3.04 0.00

8477.10.9015

Of a type used for processing rubber or other thermosetting materials

569.29 8.99 549.60 14.96 250.06 9.58 256.57 8.33 178.37 5.60

8477.10.9030 With a clamp force less than 50 tons

180.06 18.55 148.98 3.23 138.45 4.58 95.72 1.32 81.04 0.72

8477.10.9040


1,224.36 10.75 1,096.23 2.60 1,133.12 4.26 1,329.95 0.63 1,067.21 0.00

8477.10.9050


814.23 2.78 1,014.78 17.20 961.66 10.56 1,043.63 14.49 1,110.79 25.15

8477.10.9060

With a clamp force equal to or greater than 750 tons

313.12 7.00 535.24 0.00 864.47 9.37 859.10 13.12 755.79 4.87

8477.20.0005 Extruders: Single Screw

95.53 3.60 57.70 3.01 72.43 3.60 71.06 8.08 68.43 5.00

8477.20.0015 Extruders: Multiple Screws

133.02 13.74 133.17 17.60 139.19 22.88 138.94 23.22 135.53 16.80

8477.20.0035 Extruders: Less than 6.4 cm

37.28 0.63 28.02 2.84 25.56 1.36 29.78 0.00 20.22 5.36

8477.20.0045 6.4 cm or greater

68.73 4.62 100.70 6.38 81.11 12.20 83.87 28.56 67.13 20.51

8477.20.0055 With a screw size less than 6.4 cm

19.55 0.20 30.36 1.50 17.86 0.00 23.66 4.01 14.09 1.54

8477.20.0065 With a screw size 6.4 cm or greater

125.27 14.44 126.51 13.92 196.86 14.36 232.57 36.78 176.00 50.76

8477.30.0000 Blow-molding machines

268.90 41.67 407.09 20.93 458.12 35.62 540.16 58.23 421.47 34.22

8477.40.0100

Vacuum-molding machines and other thermoforming machines

192.57 29.29 238.85 48.98 234.98 31.47 298.76 54.73 318.56 40.92


476.96 14.21 224.81 16.16 286.99 15.20 134.02 6.22 131.85 8.99

8477.51.0090 Other 25.86 0.50 10.34 1.13 48.19 4.74 4.85 1.47 27.82 0.77

8477.59.0100 Other 120.30 17.83 135.87 25.42 114.51 23.23 166.90 18.95 124.35 11.04

8477.80.0000 Other machinery

722.74 82.48 776.69 48.77 1,029.94 78.87 871.16 67.44 992.92 121.26


20

8477.90.2540


104.35 15.86 84.53 17.04 102.66 12.18 111.10 10.75 93.93 6.05

8477.90.2580 Other 126.24 8.19 96.59 9.77 107.66 19.40 104.21 22.05 116.97 22.98

8477.90.4501 Barrel screws 22.55 0.12 24.82 0.19 26.78 0.47 29.69 0.56 30.60 0.26

8477.90.6500

Hydraulic assemblies incorporating more than one of the following: manifold; valves; pump; oil cooler

7.77 0.93 13.37 0.43 12.86 1.02 15.90 2.31 14.65 0.49

8477.90.8501 Of injection-molding machines

1,404.55 22.68 1,318.45 28.69 1,423.19 26.62 1,422.70 24.31 1,194.14 25.15

8477.90.8520 Of extruders 504.57 20.83 466.58 20.00 557.14 31.38 641.02 19.38 498.11 30.04

8477.90.8530 Of blow-molding machines

245.88 8.75 271.44 11.15 338.35 11.07 320.79 14.97 394.56 7.05

8477.90.8540 Of machines for forming pneumatic tires

509.08 5.03 369.60 7.26 433.35 6.21 251.00 5.77 211.49 2.53

8477.90.8595 Other parts 515.33 38.30 581.69 44.75 648.58 55.21 680.26 70.80 683.44 76.79

Total 8,847.84 395.04 8,857.92 386.81 9,724.13 449.86 9,767.99 517.09 8,937.33 526.76

%Contribution to Total 4.46% 4.37% 4.63% 5.29% 5.89%

• 2019 saw a slight increase of 1.9% in Plastic & Rubber Machinery & Equipment imports from Italy.

The total value of imports stood at $527 Mn, up from $517 Mn in 2018.

• The Italian share of imports held its own despite an 8.5% decline for the category, increasing the

Italian import share to 5.9%.



21

Plastics and Rubber Industry: Processing Machinery | Key Exporters to the U.S. | 2018

Below is a broad breakdown of the different types of machinery employed in the plastic and rubber industries, along with their top exporters to the United States.

Figure 15: Source: US Census Bureau

# Type of Machinery Top Exporters to the U.S.

1 Injection Molding Machinery

Japan (22.5%)

Germany (21.3%)

Austria (19.4%)

China (15%)

Canada (8%)

Italy ranked 11th at 1.08%

2 Extrusion Machinery

Germany (37.7%)

Italy (17.4%)

Japan (8.7%)

Austria (8.6%)

China (7.2%)

3 Blow Molding Machinery

Germany (36.7%)

France (20%)

Italy (11%)

Switzerland (9.5%)

Japan (8.12%)

4 Vacuum Molding &

Thermoforming Machinery

Germany (52.5%)

Italy (18.3%)

Canada (5.5%)

Austria (5.2%)

South Korea (3.2%)

5 Tire Molding & Retreading

China (26.5%)

Netherlands (25.7%)

Germany (25%)

Japan (7.1%)

Italy (6%)


22

Plastics and Rubber Industry: Molds | Key Exporters to the US | Year 2018

Figure 18; HTS 8480.71 and HTS 8480.79; Source: US Census Bureau

# Type of Machinery Top Exporters to the U.S.

1 Molds for Rubber or Plastics,

Injection or Compression types

Canada (48.34%)

China (20.93%)

Japan (6.46%)

South Korea (6.08%)

Germany (6%)

Italy ranks 7th (1.48%)

2 Molds for Rubber or Plastics,

Other than Injection or Compression types

China (32.56%)

Canada (18.56%)

Germany (14.03%)

Japan (7.53%)

Italy (6.35%)

South Korea (3.10%)M


23

3. TRADE OF PLASTIC RAW MATERIALS AND PRODUCTS

Total Imports of Plastic & Articles Thereof:

United States Imports of Plastics and Articles Thereof (HTS Code Group 39)


HTS

Code

Commodity

Group 2013 2014 2015 2016 2017 2018

Contrib

ution

3901 Polymers of ethylene 4364.42 4870.05 4410.45 4205.06 4448.65 4789.93 7.7%

3902 Polymers of propylene

713.97 900.42 903.90 1089.71 925.72 1310.11 2.1%

3903 Polymers of styrene 1228.87 1364.82 1239.48 1162.28 1349.21 1477.68 2.4%

3904

Polymers of vinyl chloride or of other halogenated olefins

989.56 1057.35 999.99 974.15 1038.12 1146.77 1.9%

3905

Polymers of vinyl acetate, in primary forms; other vinyl

polymers

302.11 342.14 328.59 305.23 312.37 345.95 0.6%

3906 Acrylic polymers 777.18 945.79 890.68 847.28 992.11 1096.41 1.8%

3907

Polyacetals, other polyethers;

polycarbonates and other polyesters

2626.59 2867.99 2709.90 2628.77 3083.76 3589.62 5.8%

3920

Plastics; plates, sheets, film, foil &

strip 4079.61 4358.63 4422.35 4380.06 4755.29 5185.42 8.4%

3923

Plastic articles for the conveyance or

packing of goods 6613.15 6908.23 7224.79 7336.98 7698.82 8338.92 13.5%

3924

Tableware, kitchenware, other household articles

and toilet articles, of plastic

4710.68 5020.68 5322.77 5226.56 5297.17 5808.61 9.4%

3926

Articles of plastics and articles of other materials of heading

no. 3901 to 3914

8526.59 8937.11 9251.53 9263.85 10203.66 11233.48 18.2%

-

Other plastics and articles thereof

(3908-3919, 3921, 3922, 3925)

11443.84 12555.65 12540.34 12956.20 14617.76 17524.92 28.3%

39 Total Plastics and

articles thereof 46376.57 50128.86 50244.77 50376.13 54722.64 61847.82 100.0%



24

Total Exports of Plastic & Articles Thereof:

United States Exports of Plastics and Articles Thereof (HTS Code Group 39)


HTS

Code

Commodity

Group 2013 2014 2015 2016 2017 2018 Contribution

3901 Polymers of ethylene 8026.67 8112.92 7940.32 7519.22 8010.84 10139.99 15.2%

3902 Polymers of propylene

3614.96 3688.86 3164.16 3085.90 3483.97 3686.40 5.5%

3903 Polymers of styrene 1478.45 1491.49 1369.60 1302.52 1419.99 1445.79 2.2%

3904

Polymers of vinyl chloride or of other halogenated olefins

4105.46 3972.54 3474.60 3336.68 3705.65 3924.22 5.9%

3905

Polymers of vinyl acetate, in primary forms; other vinyl

polymers

863.21 813.02 786.21 834.39 878.46 852.09 1.3%

3906 Acrylic polymers 2162.62 2060.42 1843.78 1658.83 1751.31 1915.81 2.9%

3907

Polyacetals, other polyethers;

polycarbonates and other polyesters

5695.01 6075.45 5673.91 5412.44 5598.67 5839.87 8.8%

3920

Plastics; plates, sheets, film, foil and

strip 4815.27 5207.98 5107.68 5096.67 5394.85 5411.17 8.1%

3923

Plastic articles for the conveyance or

packing of goods 5003.59 5160.89 5153.79 5236.07 5237.51 5535.33 8.3%

3924

Tableware, kitchenware, other household articles

and toilet articles, of plastic

876.78 950.48 895.85 881.37 885.34 889.60 1.3%

3926

Articles of plastics and articles of other materials of heading

no. 3901 to 3914

5968.07 6345.99 6287.71 6395.94 6809.72 7231.06 10.9%

-

Other plastics and articles thereof

(3908-3919, 3921, 3922, 3925)

18370.72 19157.33 18570.43 17868.32 18760.94 19685.49 29.6%

39 Total Plastics and

articles thereof 60980.81 63037.37 60268.04 58628.35 61937.25 66556.82 100.0%



25

3.4 NUMBER OF FIRMS AND EMPLOYEES BY PLASTIC INDUSTRY SEGMENT

In 2016, the total number of firms engaged in plastic manufacturing fell just below 8,000, while employment grew by 1.6%, to ~619,000. This may reflect some industry consolidation and improved economies of scale. There are 250+ companies identified in the Cedar Database that produce plastic components in California.

Plastic Industry | Number of Firms:

United States Plastic Industry Number of Firms by Industry Sector 2015-2016

NAICS Code

Description 2015 2016 %

Growth 326 Plastics and Rubber Products Manufacturing 9543 9355

3261 Plastics Product Manufacturing 8164 7999 -2.0%

32611 Plastics Packaging Materials and Unlaminated Film and Sheet

Manufacturing 993 1001 0.8%

326111 Plastics Bag and Pouch Manufacturing 276 287 4.0%

326112 Plastics Packaging Film and Sheet (including Laminated)

Manufacturing 304 301 -1.0%

326113 Unlaminated Plastics Film and Sheet (except Packaging)


32612 Plastics Pipe, Pipe Fitting, and Unlaminated Profile Shape


326121 Unlaminated Plastics Profile Shape Manufacturing 351 343 -2.3%

326122 Plastics Pipe and Pipe Fitting Manufacturing 306 280 -8.5%

32613 Laminated Plastics Plate, Sheet (except Packaging), and Shape




32614 Polystyrene Foam Product Manufacturing 288 295 2.4%


32615 Urethane and Other Foam Product (except Polystyrene)




32616 Plastics Bottle Manufacturing 183 181 -1.1%


32619 Other Plastics Product Manufacturing 5582 5435 -2.6%

326191 Plastics Plumbing Fixture Manufacturing 342 326 -4.7%

326199 All Other Plastics Product Manufacturing 5250 5119 -2.5%

Figure 21; Source: Annual Survey of Manufacturer


26

Plastic Industry | Employment Data:

United States Plastic Industry Employment by Industry Sector 2015-2016

NAICS Code



3261 Plastics Product Manufacturing 608903 618793 1.6%

32611 Plastics Packaging Materials and Unlaminated Film and Sheet


326111 Plastics Bag and Pouch Manufacturing 29028 29511 1.7%

326112 Plastics Packaging Film and Sheet (including Laminated)


326113 Unlaminated Plastics Film and Sheet (except Packaging)


32612 Plastics Pipe, Pipe Fitting, and Unlaminated Profile Shape


326121 Unlaminated Plastics Profile Shape Manufacturing 19562 19612 0.3%

326122 Plastics Pipe and Pipe Fitting Manufacturing 22783 23892 4.9%













32619 Other Plastics Product Manufacturing 369596 374656 1.4%

326191 Plastics Plumbing Fixture Manufacturing 16354 17183 5.1%

326199 All Other Plastics Product Manufacturing 353242 357473 1.2%

Figure 22; Source: Annual Survey of Manufacturers

4. Overview | Rubber Processing Industry in the U.S.

4.1 RAW MATERIALS

• The U.S. demand for rubber to increase 2.7% per year in nominal terms reach $8.9 bn in 2021.

• Industrial rubber revenue is expected to reach 20.9 bn in 2019, having grown 0.3$ annually since

2014.

• Rubber raw materials include styrene-butadiene rubber, natural rubber, polybutadiene rubber,

ethylene-propylene diene monomer, polychloroprene; isobutylene isoprene, or butyl, rubber;

polyisoprene rubber; and acrylonitrile-butadiene rubber, other synthetic rubbers such as acrylic

and fluoroelastomer.


27

• Steep price drops in natural and synthetic rubber in 2019 is expected to cut significantly into the

industry’s growth.

• Applications of rubber are in Automotive, Medical, Industrial, Consumer Goods and other

industries. Industrial demand for rubber (mainly for tires) dominates 60% of share in the

applications of rubber.

4.2 TRADE OF RUBBER RAW MATERIALS AND PRODUCTS

Imports of rubber raw materials and products has been flat during the period 2013 to 2018. Natural rubber (in primary form) has fallen 9% annually on an average while other segments like synthetic rubber and new pneumatic tires have been flat over the five-year term. Tubes, pipes and hoses have grown at over 5% during the period, driven by technology advancements and innovation and a stable market, offering a high growth opportunity.

Within the US, California is the largest importer of rubber and rubber products importer (~USD 4.7 bn or ~16% of the national total).

Top 3 countries exporting rubber and articles thereof to the US: - China (14%);

- Canada (10%);

- Mexico (9%)

Rubber Industry: Imports

United States Imports of Rubber and Articles Thereof (HTS Code Group 40)


HTS

Code Commodity Group 2013 2014 2015 2016 2017 2018

4001 Natural rubber; in primary

forms or in plates, sheets or strip

2709.53 2105.88 1656.65 1471.64 1968.25 1728.53

4002 Synthetic rubber; in primary forms or in plates, sheets or

strip 1677.43 1814.63 1489.93 1401.47 1569.02 1623.70

4009 Tubes, pipes and hoses, of

vulcanised rubber 1402.12 1591.31 1506.72 1449.12 1637.97 1819.73

4011 New pneumatic tyres, of

rubber 14804.64 15103.27 14736.99 13722.29 14150.86 15269.99

- Other rubber and articles thereof (4003-4008, 4010,

4012-4017) 8105.70 8438.89 8523.20 8119.64 8577.22 9512.17

40 Total rubber and articles

thereof 28699.42 29053.98 27913.49 26164.16 27903.32 29954.12


Exports of rubber raw materials and products declined during the period 2013 to 2018, driven by declines across nearly all segments of raw and finished products.

California does not feature in the top 5 exporting states of rubber and rubber products, accounting for less than less than USD 1 bn.


28

Top 3 importers of US rubber and rubber products: - Canada (28%);

- Mexico (26%);

- China (5%).

Rubber Industry: Exports

United States Exports of Rubber and Articles Thereof (HTS Code Group 40)


HTS

Code Commodity Group 2013 2014 2015 2016 2017 2018

4001 Natural rubber; in primary

forms or in plates, sheets or strip

130.22 132.04 111.60 93.06 101.86 101.12

4002 Synthetic rubber; in primary forms or in plates, sheets or

strip 3247.03 3129.95 2642.74 2444.41 2710.42 2694.31

4009 Tubes, pipes and hoses, of

vulcanised rubber 1017.92 1106.34 1057.91 958.75 1040.66 1110.61

4011 New pneumatic tyres, of

rubber 5703.71 5622.78 5096.08 4471.38 4656.77 5088.88

- Other rubber and articles thereof (4003-4008, 4010,

4012-4017) 5690.48 4932.88 4755.32 4628.30 4928.51 4983.06

40 Total rubber and articles

thereof 14789.36 14923.99 13663.65 12595.90 13438.22 13977.98


4.3 NUMBER OF FIRMS AND EMPLOYEES BY RUBBER INDUSTRY SEGMENT

At a broader level, while the total number of firms engaged in rubber manufacturing has marginally reduced to ~1400, the number of employees has increased to ~131,500, possibly reflecting some industry consolidation. There are 50+ companies identified in the Cedar Database that produce rubber components in California.

Industry | Number of Firms

United States Rubber & Plastic Industry Number of Firms by Industry Sector 2015-2016

NAICS Code



3262 Rubber Product Manufacturing 1437 1413 -1.7%

32621 Tire Manufacturing 357 335 -6.2%

326211 Tire Manufacturing (except Re-treading) 81 76 -6.2%

326212 Tire Re-treading 280 263 -6.1%

32622 Rubber and Plastics Hoses and Belting Manufacturing 188 189 0.5%


32629 Other Rubber Product Manufacturing 913 910 -0.3%

326291 Rubber Product Manufacturing for Mechanical Use 373 373 0.0%

326299 All Other Rubber Product Manufacturing 552 549 -0.5% Figure 25; Source: Annual Manufacturers Survey


29

Rubber Industry | Employment Data

United States Rubber & Plastic Industry Employment by Industry Sector 2015-2016

NAICS Code



3262 Rubber Product Manufacturing 130805 131540 0.6%

32621 Tire Manufacturing 50739 51098 0.7%

326211 Tire Manufacturing (except Re-treading) 44179 44843 1.5%

326212 Tire Re-treading 6560 6255 -4.6%



32629 Other Rubber Product Manufacturing 61300 61597 0.5%

326291 Rubber Product Manufacturing for Mechanical Use 31026 31257 0.7%

326299 All Other Rubber Product Manufacturing 30274 30340 0.2% Figure 26; Source: Annual Manufacturers Survey

5. New Applications and Challenges

5.1 New Applications

• Additive Manufacturing: This method of manufacturing is applied and used in industries such as

automobiles, defence and consumer goods.

• 3D printing: A new method used to rapidly develop prototypes, may eventually be used to produce

complete products on a large scale.

• Construction: High performance plastics are replacing the existing metals such as aluminium, brass

and steel that are used in construction. This is due to their lower cost and better performance.

• Electronics and Electronic equipment: Due to its excellent insulating quality, plastic has found a

major application in the manufacturing of electronics and electric equipment. When suitably

modified, plastics offer much versatility and possibilities in the field of electronics.

• Auto parts and Automobiles Industry: Extensively and expanding application in the manufacture of

auto parts and automobile components. This is due to their high durability, rigidness, strength and

ease of sourcing.

• Aerospace : Plastics has found applications in the aerospace industry over aluminium due to its

strength, durability and rigidness. Heat resistance and non-corrosive quality makes it a perfect

replacement material for metal fasteners. Also used in many structural applications on aircraft, e.g.

wing ribs.

• Medicine and Surgery: 3D printing technology has enabled the use of plastics in the field of

medicine and surgery. Plastics are being used to manufacture implants and other devices such as

artificial organs.

5.2 Business Challenges

• Seasonal Demand: Due to the impact of seasonal demand some plastic goods are manufactured

only at certain times in the year. For example – Vinyl products are made in the early part of the

year for the summer building season.


30

• Shortened Product Lifecycle: Some plastic products have seen a decrease in product lifecycle from

years to months. This affects the entire plastic supply chain

• Volatility in Raw Materials: Since the oil and natural gas are the resources from which we derive

plastics, a change in price and availability affects the demand of plastics. Manufacturers may have

to bear the burden of these fluctuations.

• Environmental Awareness: Due to the rapid change in the environment and awareness of such

change, consumers are demanding an increasingly high number of environmentally sustainable

products. Manufactures of plastic are thus subjected to growing regulations, bans and sanctions

that govern the production, disposal and clean-up of plastics.

• Recycling: Due to China’s new Iron Sword Policy, Exporters of plastic waste need to find new means

and alternative methods of plastic waste disposal. This means that manufacturers will now need to

either invest in setting up their own recycling units or would need to contract third parties to do it.

6. California Plastics Industry Overview

6.1 Economic Overview

• According to the Financial Bulletin published by the California Dept. of Finance (November 2019) –

in the first eight months of 2019, California’s real GDP expanded 2.7%, while that of the US grew

3.1%. The merchandise exports of the state during the same period reached $129.1 bn, a 3.2%

decline over last year.

• California’s Imports stood at $304.6 bn, a 6.3% decline over last year. The state contributed to

16.2% of all the imports of the US.

California GDP | 2013 – 2018

Figure 27; Source: State of California Department of Finance

California | Exports and Import Totals (2015-2018)

2.26 2.40 2.56 2.66 2.81 2.97

0

0.5

1

1.5

2

2.5

3

3.5

2013 2014 2015 2016 2017 2018

California GDP (in $ trillion,USD)


31


California Regions | GDP of Plastic and Rubber Products (2015)


165,360 163,439 172,012 178,405

408,337 410,173 440,576 441,166

-

200,000

400,000

600,000

800,000

FY2015 FY2016 FY2017 FY2018

Export & Imports (in $ millions, USD)

Exports Imports

59%

8%

8%

25%

California: Plastic & Rubber GDP - By Rgion (2015)

Los Angeles - Long Beach - Anaheim San Fransisco - Oakland - Hayward

San Diego - Carlsbad Riverside - San Bernardino - Ontario


32

California Plastic Industry | Concentration of Production by Location

Figure 30; Source: Company Websites & Google Maps

California Exports | Plastic and Rubber Products (2013-2018)

California Plastic and Rubber Exports 2016-2018 ($ mn)

Commodities 2016 2017 2018

2018 Rank

(State)

326 (NAIC) Plastics & Rubber

Products 4653 4463 3607

12

YoY % Change 31.2 -4.1 -19.2

Figure 31; Source: UN Comtrade

6.2 California Plastic Industry Insight

• California Circular Economy and Pollution Reduction Act (bills AB 1080 and SB 54) :

⎯ New legislation is under review that would phase out by 2030 the production of all single-

use plastics that can’t be recycled or composted.


33

⎯ The requirements of the law would drive manufacturers to design new products that

reduce unnecessary packaging waste.

• Recycling initiatives in response to China’s restrictions on plastic waste imports:

⎯ California can no longer count on simply exporting its waste. Local recycling systems will

need to be redesigned to find sustainable long term solutions centered around domestic

recycling.

• Attractive market for the manufacturing of green packaging :

⎯ Due to the country’s high gross recycling rate of 28.4% , America is an attractive destination

for the manufacturing of green packaging.

⎯ Southern California is the destination of many start-ups and organisations actively serving

this sector.

7. Qualitative Overview

7.1 CUSTOM DUTIES FOR EQUIPMENT

• The United States subjects all goods imported into duty or duty-free entry in accordance with the

classifications under the Harmonized Tariff Schedule (HTS) of the United States.

• The Customs duty is a calculated as a percentage of the total purchased value of the article(s) which

is not based on the factors like – quality, size or weight.

• Table 1 in the Annexure is a list of custom duties levied on import of various plastic injection

presses, mold and other movable and immovable parts. The table is an excerpt from the HTS that is

widely used by the CBP to govern the duty to be levied on all imports.

7.2 COMPLIANCE & TECHNICAL STANDARDS FOR EQUIPMENT

The following are the definitions of national consensus standards related to the plastic industry, for plastic processing machinery, as put forth by the American National Standards Institute (ANSI) and the Plastics Industry Association:

List of standards by ANSI and SPI

Section Description

B151.1 Injection molding machines - safety requirements for manufacture, care and use. Applies to

injection molding machines that are used in the rubber and plastics industries.

B151.21 Injection blow molding machinery - safety requirements for manufacture, care and use.

Applies to all IBMMs (including Injection Stretch Blow) that process plastic materials and

produce and/or deliver a preform which is then blown into the shape of a mold held together

by a vertically or horizontally acting clamp(s).

B151.27 Safety requirements for the integration, care and use of robots used with horizontal &

vertical injection molding machines.

B151.29 Safety requirements for the manufacture, care and use of vertical clamp injection molding

machines. Identifies and addresses known hazards to personnel working on or with the

specified machinery.


34

B151.15 Extrusion blow molding machines - safety requirements for the manufacture care and use.

Minimizes hazards to personnel associated with machine activity by establishing

requirements for the manufacture, care, and use of these machines.

B151.5 Plastic film and sheet winding machinery - manufacture, care, and use. Identifies and

addresses known hazards to personnel working on or adjacent to the machinery.

B151.2 Film casting machines - construction, care, and use (revision and re-designation of ANSI

B151.2-1982 (R1988)). Identifies and addresses known hazards to personnel working on or

adjacent to the machinery.

B151.4 Blown film take-off and auxiliary equipment - construction, care, and use (revision and re-

designation of ANSI B151.4-1982 (R1988)). Identifies and addresses known hazards to

personnel working on or adjacent to the machinery.

B151.20 American national standard for plastic sheet production machinery - manufacture, care and

use. Identifies and addresses known hazards to personnel working on or with the machinery.

• Additionally, there are some safety standards imposed by the Occupational Safety and Health

Administration on the plastic industry, some of which include:

⎯ Illumination of not less than 25 foot-candles shall be provided at an operator’s

workstation.

⎯ An electrical connection to a heated portion of a ram or screw cylinder shall be

covered with a nonconducting guard or a grounded metal barrier to prevent contact

with live terminals during normal operation of the machine.

⎯ A machine that uses a blade or knife to cut plastic materials shall be guarded by a

barrier, by position, or by a device to prevent contact between the operator and the

machine.

⎯ A machine shall be provided with an emergency stop control at each operator station.

⎯ A machine shall be provided with a means which, upon power failure, will prevent

automatic restarting upon the restoration of power. Fire, coolant, and sump pumps

are excepted from the requirements of this sub-rule.

⎯ Flexible and rigid hydraulic and pneumatic piping and its component parts shall be

designed and constructed with a safety factor of not less than 4.

⎯ An exposed heated surface which could cause an injury shall be covered or guarded to

prevent contact by an employee.

⎯ An electrically powered machine shall be grounded.

⎯ A powered gate shall have the leading edge equipped with a return switch and circuit

so designed that the gate will retract and not cause an injury

⎯ A safety gate shall also be directly interlocked with a hydraulic or pneumatic valve that

controls mold closing or have a mechanical means which will prevent movement of the

machine with the gate open or removed.

⎯ A rotational molding machine that has each movement of the mold manually

controlled by an operator may substitute a yellow line 4 inches wide for a standard

barrier around the perimeter of the path of travel of the rotating molds, except the

perimeter between the heating and cooling chambers. However, movement of the

molds must be preceded by automatic activation of a warning device, such as a

flashing light, bell, horn, or siren for 5 seconds before the movement.


35

⎯ An injection molding machine that was manufactured on or before August 28, 1973,

shall be provided with an interlocked or fixed barrier to cover the mold area opposite

the operator.

7.3 NORMS AND STANDARDS RELATED TO IMPORTS OF PLASTIC/RUBBER PROCESSING EQIPMENT

There are four documents that a company/organisation/person required for importation to the United States: 1. Arrival Notice

The importer must possess an Arrival Notice. It must be taken care of by the shipping agent or the

carrier, which is then passed along to the consignee. It includes information such as the pickup

charges, cargo units transported and what those units include.

2. Bill of Lading The carrier sends out the Bill of lading to the agent, captain, or goods owner. The bill of lading acts

like a written promise. It also describes the transportation conditions in detail.

3. Packing List This list is sent out by the shipper or freight forwarder. All information regarding the invoice can be

found in this.

4. Commercial Invoice A commercial Invoice must have the following for successful importation:

⎯ The shipping addresses

⎯ The business addresses

⎯ The company name and location

⎯ The recipient’s company or business name and location

⎯ The country of origin

⎯ The value of the item

⎯ The items themselves

On sale of the merchandise in transit, the original invoice reflecting this transaction and the resale

invoice or a statement of sale showing the price paid for each item by the purchaser shall be filed as

part of the entry. The invoice and all attachments must be in the English language or shall be

accompanied by an accurate English translation.

• Customs Bond for Importing Machinery

A Customs Bond would be needed when importing machinery into the United States. Here are two

different kinds of customs bonds: continuous bonds and single-entry bonds.

Customs bonds are like an insurance policy that promises custom duty and other fees will be paid.

⎯ Single Entry Bonds: they are good for one, low-cost, low risk import through a specific

port of entry. For every new import an Entry Bond will need to be drawn.

⎯ Continuous Bonds: If import of machinery and goods is done more than 4 times a year a

Continuous Bond is made. It is also essential for high risk or high value imports. It allows

a person to import goods as many times as they like during a year.

• Entry Documents

Entry Documents must be filed within 15 calendar days of the date that a shipment arrives at a U.S

port of entry. It must be filed keeping the specifications of the port director.

• Right to Make Entry


36

Merchandise arriving in the United States by commercial carrier must be entered by the owner,

purchaser, his or her authorized regular employee, or by the licensed customs broker designated by

the owner, purchaser, or consignee.

• Power of Attorney

A non-resident individual, partnership, or foreign corporation may issue a power of attorney to a

regular employee, customs broker, partner, or corporation officer to act in the United States for the

non-resident employer. Any person named in a power of attorney must be a resident of the United

States who has been authorized to accept service of process on behalf of the person or

organization issuing the power of attorney.

• Damage or Deterioration

Goods that have been damaged or deteriorated are treated as “non-importation” goods. These

goods don’t carry any duty charges. In case of a part being damaged, the goods must be segregated

first, only then will the duty be calculated.

• Tare

It is the duty levied on the net weight after deductions from gross weight are carried out. It is the

difference in the quantity or weight due to the bag, cask or packaging of the goods.

7.4 LEADING PLASTICS & RUBBER TRADE ASSOCIATIONS

• WPA – Western Plastics Association: A trade association dedicated to representing the broad

interests of the Plastic Industry in the Western States and Canadian Provinces of North America.

Their goal is to unify the Industry and educate legislators and the public through programs and

newsletters. Formerly CFECA (California Film Extruders & Converters Association).

• PLASTICS – The Plastics Industry Association: A purpose-driven organization that supports the

entire plastics supply chain. They provide education to the industry and to the public about plastics.

They support technology-driven innovation to solve problems. They work to change the public’s

perceptions about plastics and show how they impact society for the better.

• PIA – Plastics Institute of America: A not-for-profit organization that serves industry, individuals,

academia, and government, among others. Founded in 1961, the Institute today provides a wide

range of educational training programs, including courses for new and experienced workers,

research grants and undergraduate Scholarships for students preparing for a career in plastics, and

seminars and short courses for industry professionals.

• PMA – Polyurethane Manufacturers Association: They’re leading the way to growth that leverages

the power of cast polyurethane. As the exclusive organization dedicated to this versatile material,

PMA is the industry’s trusted resource for the latest technology, practices and knowledge.

• MAPP - Manufacturer's Association for Plastics Processors: The largest grassroots organization in

the United States plastics industry, serving over 400 member companies representing more than

45,000 employees. As a national non-profit Trade Association for plastics manufacturers, MAPP

provides its Members with access to the most powerful networking in the industry.

• NAM – National Association of Manufacturers: Representing 14,000 member companies—from

small businesses to global leaders—in every industrial sector, they are the nation’s most effective

resource and most influential advocate for these values and for manufacturers across the country.

Today, they are a one-stop shop for manufacturers and manufacturing.


37

• ARM – Association of Rotational Molders: A worldwide trade association currently representing

member companies in 58 countries. Members include manufacturers of rotationally molded plastic

products, suppliers to the industry, designers, and professionals. ARM is the primary voice of the

industry and the source for information on rotational molding. The Association serves its members

by focusing on the needs of designers, customers, educators, suppliers, member company

employees and regulators.

• APR – Association of Plastic Recyclers: The national trade association representing companies who

acquire, reprocess and sell the output of more than 90 percent of the post-consumer plastic

processing capacity in North America. Its membership includes independent recycling companies of

all sizes, processing numerous resins.

• ARMO – Affiliation of Rotational Molding Organizations: Offer benefit by allowing contact with

manufacturers of rotationally molded products, industry suppliers, consultants, designers,

educators and end-users. The Affiliation provides services that may increase company’s growth,

knowledge and current information on the worldwide happenings in roto-molding.

• AMBA – American Mold Builders Association: The largest grassroots organization in the United

States dedicated solely to the mold manufacturing industry. As a national non-profit trade

association serving over 200 member companies and 50+ partner companies (supplier members),

AMBA provides its members with access to the most powerful networking in the industry.

• SPE – Society of Plastics Engineers: An international organization dedicated to the advancement of

knowledge and education for all plastics professionals. The SPE was founded in 1942. Today it is

home to more than 22,500 plastics professionals in the United States, and more than 80 countries

around the world.

• PPFA – Plastic Pipe and Fittings Association: A North American trade association comprised of

member companies that manufacture plastic piping, fittings and solvent cements for plumbing and

related applications, or supply raw materials, ingredients or machinery for the manufacturing

process.

• ACC – American Chemistry Council (Plastics Division): Represents leading manufacturers of plastic

resins. Their members are proud to manufacture materials that can help society to do more with

less and contribute to a more efficient use of resources. Also have a Rubber Division.

• ARPM – Association for Rubber Products Manufacturers: Created for the purpose of aiding rubber

products manufacturing executives in leading more successful enterprises. ARPM’s core mission

has been designed to provide waste reduction, benchmarking, networking, international

management of product standards, and educational opportunities to its member executives. As the

only national association for rubber products companies, ARPM members range in size from small

manufacturing producers to multi-billion-dollar conglomerates.


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7.5 TRADE MAGAZINES AND TRADE SHOWS

Trade Shows

• Amerimold: The premiere event for mold manufacturing. Amerimold attendees are owners, executives, engineers and managers at OEMs and contract manufacturers. Amerimold exhibitors are equipment suppliers, service providers and tool & mold makers.

• PLASTEC West (Anaheim, CA): Where serious professionals find the technologies, education, and connections to stay ahead in the global advanced manufacturing community. In addition to more than 1,900 cutting-edge suppliers showcasing the latest solutions in injection molding, automation, molds & dies, materials, product design and more.

• NPE (The Plastics Show): The largest plastics trade show in the Americas. Since 1946, it has fuelled the advancements of tomorrow by creating a platform for technology and ingenuity. NPE2021 will bring together top minds in facility management, operations, plastics engineering and design, research, recycling and sustainability, business development, and executive leadership to transform and advance product innovation.

• Molding 2019: An educational conference where industry leaders discuss the latest developments in various molding processes, equipment, materials and management techniques, with special emphasis on adding value to your business. This conference is widely recognized as the most important forum for technical information and business conditions in injection molding.

Trade Magazines

• Plastics Technology: Provides authoritative content on plastics processing practices, tips, techniques, troubleshooting, technical advances, product developments, market insights and industry news. Their content is aimed at plastics processors—both custom and captive operations. Their mission, in print, on-line and face-to-face (via their successful annual Molding and Extrusion conferences) is to generate actionable content that the audience can use in the here and now to improve the efficiencies and productivity of their business.

• Plastics News: Covers the business of the global plastics industry. It focuses on commercial, financial, legislative and market-related developments worldwide that affect North American plastic product manufacturers and their suppliers and customers. We report news, gather data and deliver timely information that provides our weekly subscribers with a competitive advantage. Our newspaper and website serve as forums for new ideas and independent discussion of issues that concern the industry.

• Plastics Today: Community for Plastics Professionals – Reach professionals from corporate management to product designers to manufacturers who are engaged in the research, marketing, mold design, and manufacturing of consumer and industrial plastic products that range from electronics to medical devices. They have the purchasing power to buy products including plastics, injection molding machines, mold bases, electrical components, computers, software, presses, and dyes.

• Plastics Engineering: The official publication of the Society of Plastics Engineers (SPE). We provide plastics professionals with a wealth of information about machinery, technological advances, materials innovations, sustainability, and more. Our writers have spent decades covering the issues that matter most to our readers. We reach about 35,000 SPE members each month.

• Plastics Machinery Magazine: A monthly magazine focused exclusively on innovations in processing and tooling technologies. Based in Akron, Ohio, it is led by a team of plastics industry veterans that collectively has more than 250 years of experience in publishing for the plastics industry.


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7.6 UNITED STATES PLASTICS INDUSTRY | KEY TRENDS

Environmental Sustainability

• Sustainable packaging: Use will expand as manufacturers and processors throughout the value

chain adapt green practices and eco-friendly manufacturing in response to growing consumer

awareness and demand.

o Bioplastics: Made from plant-based materials, these plastics decompose naturally. Demand

has increased significantly, due to reduced toxic emissions and more secure disposal.

o Oxo-Biodegradable plastics: Made from petrochemicals, these plastics are combined with

an additive to help them break down quicker than traditional plastics. By the end of 2023

the oxo-biodegradable plastics industry could reach $6.12 billion.

• Waste management: Destination country attention to US waste and recycling shipments to poorly

regulated China and Southeast Asian has led several US-based plastic manufacturers and recyclers

to upgrade and localize plastics waste processing. China’s ban on imports will accelerate this

process.

• Bio-resins, eco-friendly plastic additives: An alternative to traditional polyurethane-based plastics,

there are two types of bio-resin: degradable and compostable.

Tariffs & US-China Trade War

• The increasingly unpredictable and volatile US-China trade war has impacted the US plastics

industry. Over 100 types of plastic raw materials, products, and equipment from China now subject

to higher punitive tariffs.

• Growing numbers of US-based plastics manufacturers thus source raw materials from local

suppliers. For example, trade in polyethylene resin and finished products slowed in Q4 2018 due to

the trade war.

Technology • Reinforced plastics: Demand for reinforced plastics is growing as an alternative to many metal

materials. These plastics are typically reinforced with carbon, glass, metal, and graphite. Their

lightweight and durable properties also mean reinforced plastics are widely used across the

medical, construction, and military sectors. The reinforced plastics market is expected to reach

~USD 16 billion by the end of 2019.

• 3D printing: This technology is increasingly adopted in the plastics industry, particularly for projects

of 100-500 cycles, as parts are produced quicker using 3D printing.

• Advances in polymers and additives: Growing numbers of new materials are being developed for

specific purposes and end-users, enhancing plastic manufacturing processes.

• Adding Metal, Ceramics and carbides to the mold: Technological advances have expanded the use

of metal, ceramics and carbides in molding machines.

• Automation: Automation brings a host of solutions to challenges facing the plastics industry,

including simplifying process and reducing costs. Benefits of integrating automation in plastic

manufacturing processes include making cycles faster and facilitating maintenance. Manufacturers

can also replace traditional pneumatics with more agile, precise, and safe robotics.


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7.7 EVOLVING CUSTOMER ATTITUDES TOWARDS PLASTICS USE

• A growing awareness of the environmental impact of plastics use, both from waste in our oceans

and land and in its impact on climate change, has driven a powerful shift in consumer behaviour.

Consumers increasingly seek a relationship with retailers and manufacturers that transcends mere

transaction, affecting reputational risk and driving changes in retailer and manufacturer use of

plastics. New legislation and norms introduced by states – often led by California - and the federal

government is also driving shifts in manufacturing and purchasing behaviour.

• There is growing consumer aversion to single-use plastics, particularly in the FMCG sector.

Consumers are increasingly committed to the use of recycled and recyclable plastics or

replacement of existing forms of plastic and packaging with more environmentally friendly ones.

• A survey conducted by Kemira is illustrative of growing evidence of these changing consumer

attitudes. It found that 56% of the survey respondents felt that it was the responsibility of the

brands to reduce plastic in food packaging. It also found that 46% of the US consumers were willing

to pay more for renewable packaging in food.

• Petrochemical producers and plastic resin suppliers are thus expecting a decrease in demand for

polyethylene and polypropylene due to reduction in demand for single use plastics.

• Plastic/product manufacturers (including aerospace, automotive, electrical, furniture etc) are

expecting growing pressure from downstream customers seeking green credentials and a

commitment to decrease single-use plastics in manufacturing.

• Recycling industry – China’s ban on imports of waste plastics will drive investment in recycling

capacity in the US, which historically has exported waste to China.

8. Analysis and Conclusion

8.1 PLASTIC PROCESSING INDUSTRY | ANALYSIS AND CONCLUSION

The U.S. economy is the largest in the world, and California is the largest economy in the U.S. at $3 trillion. With healthy growth, a large manufacturing base with good access to the international markets, a strong technology base and 6% of the national plastics and rubber manufacturing capacity, the region has room to grow as a plastics processing center, particularly in high performance and environmentally friendly applications. The plastics raw material industry has grown consistently, and polythene is the most widely consumed material. Packaging remains the most common application of plastics. Growing consumer awareness of the environmental impact of plastics will drive demand for recyclable plastics at the retail level, thus driving demand for greener and more innovative plastics and processing technologies at the manufacturing level. Demand for Injection, vacuum and extrusion molding machinery is growing. While injection molding is the most common technology, vacuum and extrusion molding are on the rise because of their expanding range of applications. Though the US-China trade war has affected exports, imports continue to remain high reflecting demand of plastics in the U.S. A potential positive impact from tariffs is that the increased cost of imports may create pricing parity for domestically sourced machinery and bolster prices for used equipment. After several years of machinery shipment growth, 2019 saw stability in some sectors, eg extrusion, and some decline over 2018 in other sectors, eg injection molding. Trade wars and economic uncertainty, delayed orders and reduced capital investment, particularly in the automotive sector, all contributed to a 10-15% decline in injection molding machines in the first three quarters of 2019. Bright spots continue to


41

be in medical and packaging, the latter particularly in innovative environmentally sustainable solutions, eg oxo-biodegradable and recyclable materials and designs. 2020 is likely to see more of the same, despite a reduced threat in recent months of a broader economic recession. In an election year, all eyes will be on economic performance and the Trump administration is unlikely to add any more uncertainty (though this administration is not predictable.) That said, the manufacturing slowdown continues and at a slightly accelerated pace. The Institute of Supply Management’s Purchasing Managers Index (PMI), a leading indicator of the manufacturing sector, has declined for three consecutive months. Capacity utilization among plastics and rubber processors is another negative indicator. Utilization declined steadily over the last two years and now stands at roughly 75%. Together with the improved productivity gained through new machinery investments after the Great Recession, there is now considerable capacity already installed. The demand for rubber is expected to reach $8.9 bn in the U.S. by 2021, mainly from the tire industry. The U.S. is the second largest market for vehicle sales and production which will likely sustain healthy rubber demand. However, the rubber trade remains flat, partly due to the trade tensions and a fall in demand for natural rubber. Increased automation and the use of artificial intelligence, 3d printing and other emerging production technologies will likely drive continued growth of the plastic and rubber processing market more broadly. Environmental and carbon-reduction technology innovation in the construction and automotive sector will drive demand for specialized and higher-performance plastic and rubber processing and California is likely to be an important hub.


42

Annex Table 1: Long-list of Custom Duties (Equipment, Parts & Machinery)

HTS Code Description Qty Unit

General Rate

of Duty

Rate of

Duty

8477

Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof:

8477.10 Injection-molding machines:

8477.10.30.00 For manufacturing shoes ["No."] Free Free

8477.10.40.00 For use in the manufacture of optical media ["No."] Free 35%

8477.10.90.40 With a clamp force equal to or greater than <il>50 tons</il> and less than <il>300 tons</il>

["No."] 3.10% 35%

8477.10.90.50 With a clamp force equal to or greater than <il>300 tons</il> and less than <il>750 tons</il>

["No."] 3.10% 35%

8477.10.90.60 With a clamp force equal to or greater than <il>750 tons</il>

["No."] 3.10% 35%

8477.20.00 Extruders 3.10% 35%

Of a type used for processing rubber or other thermosetting materials:

8477.20.00.05 Single screw ["No."] 35%

8477.20.00.15 Other, including multiple screw ["No."] 35%

Of a type used for processing thermoplastics:

Single screw, with a screw size:

8477.20.00.35 Less than <il>6.4 cm</il> ["No."] 35%

8477.20.00.45 <il>6.4 cm</il> or greater ["No."] 35%

Other, including multiple screw: 35%

8477.20.00.55 With a screw size less than <il>6.4 cm</il> ["No."] 35%

8477.20.00.65 With a screw size <il>6.4 cm</il> or greater ["No."] 35%

8477.30.00.00 Blow-molding machines ["No."] 3.10% 35%

8477.40.01.00 Vacuum-molding machines and other thermoforming machines

["No."] 3.10% 35%

Other machinery for molding or otherwise forming:

8477.51.00 For molding or retreading pneumatic tires or for molding or otherwise forming inner tubes

3.10% 35%

8477.51.00.10 For molding or retreading pneumatic tires ["No."] 35%

8477.51.00.90 Other ["No."] 35%

8477.59.01.00 Other ["No."] 3.10% 35%

8477.80.00.00 Other machinery ["No."] 3.10% 35%

8477.9 Parts: 35%

8477.90.25 Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications

3.10% 35%


43

8477.90.25.40 Of machines of subheading 8477.10.30, 8477.10.40 or 8477.10.90

["No."] 35%

8477.90.25.80 Other ["No."] 35%

8477.90.45.01 Barrel screws ["No."] 3.10% 35%

8477.90.65.00 Hydraulic assemblies incorporating more than one of the following: manifold; valves; pump; oil cooler

["No."] 3.10% 35%

8477.90.85 Other 3.10% 35%

8477.90.85.01 Of injection-molding machines ["No."] 35%

8477.90.85.20 Of extruders ["No."] 35%

8477.90.85.30 Of blow-molding machines ["No."] 35%

8480

Molding boxes for metal foundry; mold bases; molding patterns; molds for metal (other than ingot molds), metal carbides, glass, mineral materials, rubber or plastics:

8480.10.00.00 Molding boxes for metal foundry ["No."] 3.80% 45%

8480.20.00.00 Mold bases ["No."] 3.40% 50%

8480.30.00.00 Molding patterns ["No."] 2.80% 50%

Molds for metal or metal carbides:

8480.41.00.00 Injection or compression types ["No."] 3.10% 35%

8480.49.00 Other types 3.10% 35%

8480.49.00.10 Molds for centrifugal casting of ductile iron pipe ["No."] 35%

8480.49.00.90 Other ["No."] 35%

8480.50.00 Molds for glass Free 35%

8480.50.00.10 Injection or compression types ["No."] 35%

8480.50.00.90 Other types ["No."] 35%

8480.60.00 Molds for mineral materials Free 35%

8480.60.00.10 Injection or compression types ["No."] 35%

8480.60.00.90 Other types ["No."] 35%

Molds for rubber or plastics: 35%

8480.71 Injection or compression types: 35%

8480.71.40.00 For the manufacture of semiconductor devices ["No."] Free Free

8480.71.80 Other 3.10% 35%

Other:

8480.71.80.45 Injection type ["No."]

8480.71.80.60 Compression type ["No."]

8480.79 Other types:

8480.79.10.00 Molds for shoe machinery ["No."] Free Free

8480.79.90 Other 3.10% 35%

8480.79.90.10 Blow molds ["No."]

8480.79.90.20 Bladder operated molds ["No."]

8480.79.90.90 Other molds ["No."]


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Table 2: US states and their contribution to the US Plastics & Rubber GDP | Year: 2017

Sr. No State % of US GDP

1 Alabama 2.3

2 Alaska 0

3 Arizona 0.7

4 Arkansas 1.6

5 California 5.9

6 Colorado 0.9

7 Connecticut 0.8

8 Delaware 0.3

9 District of Columbia 0

10 Florida 1.7

11 Georgia 3.6

12 Hawaii 0

13 Idaho 0.3

14 Illinois 7.2

15 Indiana 4.8

16 Iowa 1.5

17 Kansas 1.3

18 Kentucky 2.2

19 Louisiana 0.6

20 Maine 0.3

21 Maryland 1.2

22 Massachusetts 1.9

23 Michigan 5.3

24 Minnesota 2.1

25 Mississippi 1

26 Missouri 1.9

27 Montana 0

28 Nebraska 0.7

29 Nevada 0.4

30 New Hampshire 0.6

31 New Jersey 2.1

32 New Mexico 0.1

33 New York 4.5

34 North Carolina 4.8

35 North Dakota 0.2

36 Ohio 7.3

37 Oklahoma 1.3

38 Oregon 0.6

39 Pennsylvania 6

40 Rhode Island 0.4

41 South Carolina 3.4

42 South Dakota 0.2


45

43 Tennessee 3.3

44 Texas 6.2

45 Utah 0.6

46 Vermont 0.1

47 Virginia 2.7

48 Washington 1

49 West Virginia 0.4

50 Wisconsin 4

51 Wyoming 0.1

Total 100

Table 3 : List of Leading Trade Associations for Plastics and Rubber Industry

List of Leading Plastic and Rubber Trade Associations

# Name of Association Website

1 Western Plastics Association (WPA) https://westernplastics.org

2 The Plastics Industry Association (PLASTICS) https://www.plasticsindustry.org

3 Plastic Institute of America (PIA) www.plasticsinstitute.org

4 Polyurethane Manufacturers Association (PMA) www.pmahome.org

5 Manufacturer's Association for Plastics Processors (MAPP)

https://www.mappinc.com

6 National Association of Manufacturers (NAM) https://www.nam.org

7 Association of Rotational Molders (ARM) https://rotomolding.org

8 Association of Plastic Recyclers (APR) https://plasticsrecycling.org

9 Affiliation of Rotational Molding Organizations (ARMO)

www.armo-global.org

10 American Mold Builders Association (AMBA) https://amba.org

11 Society of Plastics Engineers (SPE) https://www.4spe.org

12 Plastic Pipe and Fittings Association (PPFA) https://www.ppfahome.org

13 American Chemistry Council (Plastics Division) (ACC) https://plastics.americanchemistry.com

14 Association for Rubber Products Manufacturers (ARPM)

https://arpminc.com

https://westernplastics.org/

https://www.plasticsindustry.org/

http://www.plasticsinstitute.org/

http://www.pmahome.org/

https://www.mappinc.com/

https://www.nam.org/

https://rotomolding.org/

https://plasticsrecycling.org/

http://www.armo-global.org/

https://amba.org/

https://www.4spe.org/

https://www.ppfahome.org/

https://plastics.americanchemistry.com/

https://arpminc.com/


46

Table 4 : List of Trade Shows and Magazines

List of Plastic and Rubber Trade Shows and Magazines

# Name Website

Trade Shows

1 Amerimold https://www.amerimoldexpo.com

2 PLASTEC West https://plastecwest.plasticstoday.com

3 NPE (The Plastics Show) https://npe.org

4 Molding 2019 https://www.moldingconference.com

Trade Magazines

1 Plastics Technology https://www.ptonline.com

2 Plastics News https://www.plasticsnews.com

3 Plastics Today https://www.plasticstoday.com

4 Plastics Engineering https://onlinelibrary.wiley.com › journal

5 Plastics Machinery Magazine www.plasticsmachinerymagazine.com

Uffici Ice Agenzia negli Usa

https://www.amerimoldexpo.com/

https://plastecwest.plasticstoday.com/

https://npe.org/

https://www.moldingconference.com/

https://www.ptonline.com/

https://www.plasticsnews.com/

https://www.plasticstoday.com/

http://www.plasticsmachinerymagazine.com/

47

L’ICE - Agenzia per la promozione all’estero e l’internazionalizzazione delle imprese italiane è l’organismo attraverso cui il Governo favorisce il consolidamento e lo sviluppo economico-commerciale delle imprese italiane sui mercati esteri. Agisce, inoltre, quale soggetto incaricato di promuovere l’attrazione degli investimenti esteri in Italia. Con una organizzazione dinamica motivata e moderna e una diffusa rete di uffici all’estero, l’ICE svolge attività di informazione, assistenza, consulenza, promozione e formazione alle piccole e medie imprese italiane. Grazie all’utilizzo dei più moderni strumenti di promozione e di comunicazione multicanale, agisce per affermare le eccellenze del Made in Italy nel mondo

ITA - Italian Trade Agency is the Governmental agency that supports the business development of Italian companies abroad and promotes the attraction of foreign investment in Italy. With a motivated and modern organization and a

widespread network of overseas offices, ITA

provides information, assistance, consulting,

promotion and training to Italian small and

medium-sized businesses. Using the most modern

multi-channel promotion and communication

tools, it acts to assert the excellence of Made in

Italy in the world

Italian Trade Agency – Chicago

401 North Michigan Avenue, Suite 1720


T + 1 312.670.4360

[email protected]

Rome Headquarters

Via Liszt, 21

Roma – 00144 ITALIA

T + 39 06.59921

[email protected] mailto:[email protected]

www.ice.it Italian Trade Agency @ITAtradeagency

ITA - Italian Trade Agency @itatradeagency

https://www.linkedin.com/company/itaitaliantradeagency





http://www.ice.it/

https://www.youtube.com/channel/UCDcxMr1QfesFd-G1cShfPiw

https://twitter.com/itatradeagency?lang=en

https://www.linkedin.com/company/itaitaliantradeagency

https://www.instagram.com/itatradeagency/

https://www.youtube.com/channel/UCDcxMr1QfesFd-G1cShfPiw

https://twitter.com/itatradeagency?lang=en

https://www.instagram.com/itatradeagency/

Prepared by:

Cedar Management Consulting International LLC Italian Trade Agency – Chicago

for Italian Trade Agency 401 N.Michigan Avenue, Suite 1720


T + 1 312.670.4360

F + 1 312.670.5147

[email protected]


Plastic Processing Industry in California

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