PLASTICS Issues Plastics Equipment Statistics for Q1 2024
Covering injection molding and extrusion shipment data, the report indicates a decrease in shipment value, though PLASTICS’ chief economist says growth is still inevitable.
Source | PLASTICS Committee on Equipment Statistics
The Plastics Industry Association (PLASTICS) has released the Committee on Equipment Statistics’ (CES) report for Q1 2024, authored by chief economist, Dr. Perc Pineda. The report, covering injection molding and extrusion shipment data for primary plastics machinery in North America, indicate a shipment value of $261.9 million, reflecting a 24.8% decrease from the previous quarter and a notable 24.2% decrease year over year (Y/Y).
“It is common to see lower shipments in the first quarter of each year,” notes Pineda. “Long-term data confirms this consistent pattern. Accounting for such seasonality, shipments decreased by 8.5% quarter over quarter. This time, plastics machinery suppliers reacted in alignment with the overall pullback in the macroeconomy and a still high interest rate environment.” In the first quarter, U.S. output measured by Gross Domestic Product (GDP) slowed to 1.6% on a seasonally adjusted annual rate following 3.4% and 4.9% GDP growth rates in third and fourth quarters in 2023.
Within the primary plastics machinery domain, single-screw extrusion witnessed a significant 47.7% decrease in quarter-over-quarter (Q/Q) analysis and a 23.4% decrease Y/Y. Twin-screw extrusion also experienced a comparable 7.0% decrease Q/Q and a more substantial 17.0% decrease Y/Y. Conversely, injection molding shipments fell by 33.8% Q/Q but encountered a 24.9% Y/Y decline in shipment.
Results from the latest CES quarterly survey showed a high percentage (74.4%) of participants anticipating steady or improved market conditions over the next 12 months. Moreover, almost half (48.9%) of participants indicated an increase in quoting activity compared to 17.1% of participants in the previous survey.
In Q1 2024, U.S. total exports of plastics equipment fell by 7.4%, while imports surged by 7.0% from the previous quarter. Mexico and Canada once again emerged as the top export markets, jointly accounting for $191.4 million in exports, which represents 47.9% of total U.S. plastics machinery exports globally.
“While still strong, the U.S. economy is poised for another year of growth, albeit at a slightly lower rate,” remarks Pineda. “However, growth in housing is hampered by higher borrowing costs, which also applies to higher capital expenditure financing in the business sector, including equipment investment in plastics manufacturing. Manufacturing holds significant potential for growth, currently hindered by prolonged inventory adjustments and the rebalancing of consumption between goods and services.”
For related content, read “Navigating Economic Resilience and Consumer Trends.”
