Press release submitted on behalf of PLASTICS.
Washington, D.C. — The Plastics Industry Association (PLASTICS) Chief Economist, Dr. Perc Pineda, has released a new economic analysis detailing the current state of U.S. plastics manufacturing, noting early signs of improved market conditions following several years of interest-rate-driven slowdown.
Dr. Pineda explains, “The 2023 edition of our annual publication—Global Trends Report—attributed the slowdown in plastics manufacturing to higher borrowing costs. The manufacturing sector is the plastics industry’s main customer. By extension, an interest-rate-driven manufacturing slump would have spillover effects on plastics manufacturing—and that is exactly what occurred over the last three years. When the federal funds rate reached the 4.00% upper limit of its target range, plastics manufacturing began to slow. In PLASTICS’ quarterly note to members, we highlighted the pullback in plastic products manufacturing from its 2021 peak. Manufacturers were able to continue meeting steady demand for plastics across the economy by drawing from elevated inventories, even as production remained constrained. Recent data, however, show early signs of improvement following a period of manufacturing weaknesses.”
Click here to read the full analysis on the PLASTICS blog.
The Plastics Industry Association (PLASTICS) supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors, and Recyclers, representing over one million workers in our $551 billion U.S. industry. PLASTICS advances the priorities of our members who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives. Since 1937, PLASTICS has been working to make its members, and the eighth largest U.S. manufacturing industry, more globally competitive while supporting circularity through educational initiatives, industry-leading insights and events, convening opportunities and policy advocacy, including the largest plastics trade show in the Americas, NPE: The Plastics Show.