Industry Analysis, the Plastic Industry
The economy affects the plastic industry in many areas. You can find plastic in almost every industry from automotive to medical devices. Even the price of gas can shape the plastic industry. Over the next three years the top three areas that will increase are food containers, consumer electronics, and medical devices. While others areas such as automotive, housing, and packaging will decrease somewhat. The decrease is due impart of Asia’s cheep labor and a weak US dollar. The US is in competition with China to build faster and cheaper injection molds. If this does not change the suppliers could be phased out here in the US.
Over the next three years the plastic industry will increase slightly in a few areas. The top three areas include food containers, consumer electronics, and medical devices. The spike in petroleum, that produces plastic resin, has driven the cost of products up in all areas. This factor will continue to increase thru 2010. The food industries US demand for plastic containers will rise about five percent annually thru 2010. According to Foodproductiondaliy.com, “Items such as plastic bottle and jars will be dominate plastic container type thru 2010” (Staff Reporter 2006). Consumer Electronics will increase tremendously over the next three years. In 2007 the Fourth quarter sales hit a record breaking $48.1 billion dollars. That is a 7% increase from 2006. The large increase is due to the holiday season. “Consumer electronics will be the shining star of holiday retail sales, accounting for 22% of all gifts given,” says CEA economist Shawn DuBravac. “Two of the top five items on adults’ holiday wish lists are consumer electronics, and four of the top five items on the teen list are CE devices. Holiday sales will be particularly jolly for the video game category (hardware and software), laptop computers, and the endless array of accessories available for your...