Industry Analysis & Industry Trends
From food producers to car manufacturers, the Global Plastic Product and Packaging Manufacturing industry supplies plastic products to a wide range of sectors, keeping demand steady. Over the past five years, consumers have increased their consumption of plastic has been substituted for materials such as wood, paper, metals and glass in many applications. As downstream industries such as construction and auto manufacturing continue their recovery, the industry is is expected to fare well over the next five years. The versatility of plastic when compared with equivalent products is one of the major advantages plastic manufacturers have over their competition... read more
This industry has a moderate level of capital intensity. For every dollar spent on wages, companies operating within this industry will allocate an estimated $0.32 on machinery, equipment and other capital expenses. Depreciation, which provides an indication of the level of capital investment, will account for 3.1% of industry revenue in 2015. In comparison, wages will account for an estimated 9.8% of industry revenue. Consequently, the level of capital investment required in this industry is significant.
The largest cost this industry incurs is that paid for raw materials, principally resin. In order to produce the final product, manufacturers rely heavily upon large-scale extrusion machines capable of large volume production runs... read more