Plastics and rubber - Industry Overview

US Industrial Outlook, Annual, 1994 by Raimundo M. Prat

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INTERNATIONAL COMPETITIVENESS

In 1992, exports of about $4.5 billion only slightly exceeded imports of about $4.3 billion. The value of the total trade turnover (sum of imports plus exports) amounted to about 13.5 percent of total industry shipments, domestic and foreign, in 1993. U.S. exports compete favorably against lower cost producers in many third-country markets. Canada, Taiwan, China, and Japan accounted for the bulk of imports in 1993.

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ENVIRONMENTAL PROFILE

Although plastics waste constitutes a minor component of total U.S. solid waste collected, efforts to develop environmentally safer products in response to public pressures remains a high industry priority. The percentage of total plastic recycled remains low compared with total production or consumption. However, significant recycling advances have been made, particularly for polyethylene terephthalate beverage bottles). Industry associations continue to work with federal, state and local legislative bodies to evaluate the relative merits of recycling compared with other disposal methods, such as landfill and burning.

Outlook for 1994

Shipments of miscellaneous plastic products are expected to grow by 5 percent in 1994, largely as a result of stronger consumer confidence and spending, and expected increases in demand from the electronics and health care sectors. Highest growth is expected to be for molded and extruded products.

Long-Term Prospects

Greater reliance on computer-aided design and manufacturing is expected in the last half of the 1990's as the industry streamlines its production. These measures will be aimed at strengthening the industry's competitiveness in the areas of quality control and improved client relations.

SYNTHETIC RUBBER

Synthetic petroleum-based rubber materials in this sector (SIC 2822) are also known as elastomers.

The development of synthetic rubber parallels that of other materials: general purpose commodity materials used in bulk in the tire industry and elsewhere give rise to new applications that, in turn, become more refined over time and stimulate needs for more complex specialty materials. Synthetic rubber (SR) materials therefore fall into two broad categories: general purpose or commodity materials, and the specialty elastomers.

Among the most common general purpose elastomers are styrene-butadiene latex, polychloropropylene, nitrile, ethylenepropylene diene monomer, carboxylated styrene, polybutadiene, and solid elastomers. These are widely used in the production of tires and industrial rubber products. In contrast, specialty elastomers are used in applications where resistance to extreme environmental conditions or considerations of weight and volume are important. While relatively minor as a percentage of total SR volume, specialty elastomers continue to show growth rates far higher than the industry as a whole.

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INTERNATIONAL COMPETITIVENESS

The United States now ranks first in production of synthetic rubber with about 26 percent of total world output in 1992. Other major world-class producers in 1992 include the former republics of the Soviet Union (18 percent), Japan (15 percent), Germany (5 percent), and China (4 percent).