Fabricated Rubber and Plastics Overview

The US fabricated plastic & rubber industry has expanded relatively strongly in recent years, as the number of end-users for plastic and rubber products has increased. The industry now supplies a wide range of sectors, ranging from agriculture to healthcare.

The industrial rubber sector has grown at a compound rate of 5% in the last few years and is expected to match this performance through to 2008, when it is forecast to reach a value of $16 billion. This sector has been the driving force behind market growth in recent years. In contrast, the past few years have been challenging for the plastics sector due to continued volatility in the resins market.

Going forward, growth in US non-residential construction is expected to drive demand across the fabricated plastics and rubber market.

A common problem facing manufacturers has been the impact of rising raw material costs, which has led to a fall in margins. Consolidation among suppliers of commodity resins, one of the primary raw materials for the industry, has created a sellers market.

The leading players in the US fabricated plastic & rubber industry include Carlisle, Spartech, A. Shulman, Myers Incorporated and Atlantis Plastics. Rising costs have led firms to streamline operations and focus on core businesses. For example, in 2004, Carlisle Companies announced its exit from the automotive business, resulting in a vertically integrated company focused on plastic and rubber products.