Industry Analysis & Industry Trends
Revenue for the Basic Plastics and Synthetic Resin Manufacturing industry is estimated at $160.8 billion in 2016, up 3.1% from 2015. Over the past five years, revenue has been growing at an annualized rate of 6.3%. Growth was fast in the beginning of the five-year period due to increasing domestic market demand and foreign demand. However, downstream industries like building construction (IBISWorld industry report 4710) and household electronic appliance manufacturing (3954) have been suffering since the government stimulus package of 2010 came to an end.
In 2015, output of synthetic resin reached 76.9 billion tons, up 10.6% from 2014. After years of output expansion and technological improvements, the industry is more capable of satisfying domestic demand.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor (including wages and research and management costs), about 84 cents are spent on capital, indicating that the Basic Plastics and Synthetic Resin Manufacturing industry in China requires a high level of investment.
The manufacturing of basic plastics and synthetic resin involves many chemical reactions that cannot be conducted manually. Therefore, it is subject to a high mechanization level. Enterprises must make considerable purchases of fixed assets like manufacturing facilities and equipment. Due to rapid technology changes aimed at increasing output capacity and complying with increasingly stringent government environmental regulations, the life span of industry facilities is short, leading to high depreciation... purchase to read more