What's Driving the North American
Automotive Market and the Role of
Plastics in the Ride
Michael D. Taylor
Senior Director, International Affairs and Trade
The 2nd Asian Automotive World Class Manufacturing Summit
Jakarta, Indonesia
August 3-4, 2015
Agenda Background on SPI
Brief Overview of the U.S. Plastics Industry
Plastics Market Watch Series
Key Drivers of the North American Automotive Market
Future Demand and the Role of Plastics
Q&A
Founded in 1937, SPI is the only U.S.
trade association representing ALL
segments of the plastics industry
The U.S. Plastics Industry
In 2012…
• Shipped more than $373 billion
in goods
• Employed 892,000 people
• Operated 15,949 facilities in every
U.S. state
In 2014…
• Domestic demand
– Up 6.0% to $298 billion
In 2014…
• 3rd largest industry in U.S.
• Record-breaking domestic demand
– Up 11.5% to $298.3 billion
U.S. Demand for Plastics sets
New High Level
$0
$50
$100
$150
$200
$250
$300
$350
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$ in b
illio
ns
Machinery Molds Plastic Products Resin
Apparent Consumption = Shipments + Imports – Exports
Source: SPI “Global Business Trends” (2015)
SPI has launched a new series of reports looking at the
impact of the consumer on the business of plastics,
including demographics, economics, policy developments
and technological improvements for markets including:
Automotive & Transportation
Healthcare & Medical Devices
Packaging
Housing & Construction
This first publication under the SPI Market Watch series
explores the current state of plastics' role in the automotive
and transportation sector and looks into what the future
holds for the material.
Issue 1:
Automotive and
Transportation
Now Available for
Free!
Key Drivers for End Markets
Economic Indicators
Demographics
Technology
Policy
Consumer Trends
Resources
Market
Positive
trade balance
of $12.6 billion
$49.5B PLASTICS 7.3%
2014 Trade Statistics
In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1
percent from 2013
$35.1B RESINS 1.8%
$25.0B PRODUCTS 5.1%
$528.3M MOLDS 10.1%
$1.7B MACHINERY 7.7%
Source: U.S. International Trade Commission
Top Industry Export Markets
$0
$5
$10
$15
$20
$25
$30
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
U.S
. $
Bill
ion
s
Mexico Canada China Belgium Brazil All Others
Top Plastics Industry
Export Markets 2014
All Others $23.5 billion
Mexico $15.8 billion
Canada $13.2 billion
China $5.2 billion
Belgium $2.4 billion
Brazil $2.1 billion
Total $62.1 billion
Trans-Pacific Partnership Trans-Atlantic Trade &
Investment Partnership
Global Opportunities
11
• 2014: U.S. plastics
industry exports to the
11 TPP countries were
more than $34B
• Since 2000: plastics
exports to TPP
countries increased
more than 91%
• 2014: plastics industry
trade surplus with TPP
countries was $13.7B
• A high-standard TTIP
would advance trade
and investment
liberalization and
address regulatory and
other non-tariff barriers
• Based on 2011 trade
flows, the U.S. plastics
industry would be one
of the top benefiting
sectors with a total
potential tariff savings
of $465M
U.S. Plastics Trade Balance
by Segment 2000-2014
Source: U.S. International Trade Commission
-10
-5
0
5
10
15
20
25
Resin Products Machinery Molds
U.S. Plastics Trade Balance with
FTA Countries by Segment
2000-2014
Source: U.S. International Trade Commission
-2
0
2
4
6
8
10
12
Resin Products Machinery Molds
Industry Drivers of Profitable
Growth
• Innovation and technology
• Dramatic changes to the automobile
• Light weighting and part commonization initiatives will provide opportunities for plastics processors
• Effective commercial relationships, especially related to:
• Pricing and costing transparency (including resin cost management)
• Engineering, technical support, warranty responsibility
• Fewer and combined vehicle architectures
• Drive up production volumes for suppliers, but reduce the number of suppliers
• Investing in targeted vehicle platforms will be critical to long term growth
• Manufacturing launch efficiency
• Growing number of vehicle introductions each year
• More extensive supplier technical support required
• Geographic growth strategies crucial to OEM support…China, Brazil, Russia, Mexico and many other emerging markets
Estimated Light Vehicle Sales
for North America
19,600
19,700
19,800
19,900
20,000
20,100
20,200
20,300
20,400
20,500
20,600
20,700
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Th
ou
sa
nd
s o
f V
eh
icle
Sa
les
Source: IHS
In Summary…
• Policy
CAFE Standards
FTAs (TPP, TTIP)
• Demographics
Immigration
• Policy
Taxes, bans, deselection
• Demographics
Gen Y
• Resources
Skilled Labor Shortage
• Economic Indicators
Economic Growth/Employment
Consumer Confidence/Disposable Income
• Technology
Additive Manufacturing, Nanotechnology, Carbon
Fiber Technology, Recycling
• Consumer Trends
Green Mainstreaming
Urbanization, Suburbanization, Exurbanization
The Future Role of Plastics in
the Automotive Market
“By 2030,” says the American Chemistry Council, “the automotive industry and society
will recognize plastics and polymer composites as preferred material solutions that meet
and, in many cases set, automotive performance and sustainability requirements.”
The prospect of 100 percent plastic automobiles and trucks on the road is increasingly
plausible—because prototypes are already on display in R&D facilities and in some trade
shows. The plastics industry, ever and always in the front ranks of innovation, is on the
leading edge of this movement.
The majority of drivers and their respective key trends suggest a growing automotive and
transportation market, and a market where the overall use of plastics has a good chance
of increasing.
Given the inherent advantages that plastics represent compared to other alternative
materials, it is extremely likely that the transportation choices of the future will use more,
not less.
Thank You!
谢谢 Merci Vielen Dank
Grazie ありがとうございました 감사합니다
Obrigado Спасибо Gracias Teşekkürler
Questions & Answers
Michael Taylor
202-974-5232
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