mark badger president & ceo canadian plastics resin outlook conference october 7, 2009 one...
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3 Plastics Industry Economic DataTRANSCRIPT
Mark BadgerPresident & CEO
Canadian Plastics Resin Outlook ConferenceOctober 7, 2009
One unified voice for the plastics industry
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Review of the latest economic data on the plastics industry. Review of the trends in public opinion & legislation. Overview of the Intelligent Plastics campaign. Intelligent Plastics Progress report. Update on changes at CPIA.
Agenda
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Plastics Industry Economic Data
0
5000
10000
15000
20000
25000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Mill
ions
$
Shipments of Plastic Products (NAICS 3261)
Plastics Shipments drop 21.8%
over last year
*Estimate based on data from the first six months of 2009Source: Industry Canada and Statistics Canada
Canadian Plastics Trade Balance (NAICS 3261)
Source: Industry Canada
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Mill
ions
$
Imports Exports Trade Balance
Canadian and Chinese Shares of US Imports Plastics Products*
*Selected plastics products from Harmonized Trade Classification System
Source: Industry Canada (with data from the U.S. Census Bureau)
20%22%24%26%28%30%32%34%36%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Canada China
North American Production of Vehicles
Transportation and Automotive
Source: Dennis DesRosiers, Automotive Consultant
02468
1012141618
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009f 2010f 2011fYear
Num
ber o
f uni
ts (m
illio
ns)
0%2%4%6%8%10%12%14%16%18%20%
Total North America units (millions) Canada as a % of North AmericaMexico as a % of North America
Construction in Canada
Source: Centre for Spatial Economics, January 2009
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Inde
x 20
01 =
1.0
0
Renovation Residential ConstructionNon-residential Construction Non-residential Engineering
Government Stimulus
Shipments of Plastics Processors in Packaging & Related Products(NAICS 32611+32614+32616)
*Estimate based on data from January to June
Source: Industry Canada
0
1
2
3
4
5
6
Bill
ions
$
Plastics and Packaging
*Estimate based on the first six months of 2009
Source: Industry Canada and Statistics Canada
Index of Plastics Packaging Share
0.951.051.151.251.351.451.551.651.75
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
*
Shipments of Plastic Bottles (NAICS 326160)
*Estimate based on data from January to JuneSource: Industry Canada
0
100
200
300
400
500
600
700
800
900
1000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*
Mill
ions
$
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Trends in Public Opinion & Legislation
We have a perception problem.
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Plastics: Perceptually Challenged
Media
CorporationsGovernment
Public
Products
Raw Materials
Plastics
o Public, retailers and government are increasingly focused on environment and health impacts.
o Anti-plastic attacks are increasing, and are having a negative impact on the industry.
o Attacks are often founded on incomplete and inaccurate information.o Fear mongering and emotion prevail over facts and science.o Majority of news articles on plastic have been negative.o Retailers are taking actions.o Canada’s Chemical Management Plan, Ontario’s Toxic Reduction
Strategy & Municipal legislation could negatively impact the industry if left unabated.
We must change public opinion before we change government opinion.
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Trends in Public Opinion & Legislation
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Intelligent Plastics Campaign
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ObjectivesCreate a more hospitable Canadian legislative/regulatory climate for the plasticsindustry, and foster a more positive public opinion of both the industryand its products.
Target Industry’s key stakeholders:
• Government (federal, provincial and municipal) • Retailers • Industry Employees • The General Public • Media
Intelligent Plastics Campaign
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Increase SR&ED contributions. Provide sponsorship support to CPIA for innovation
forums, involving academic, public and private partnerships.
Include the industry in industrial and economic strategy development.
Broaden support for recycling and energy recovery programs.
Work with industry through the association to create a legislative environment that is a winning solution for all parties.
Intelligent Plastics Campaign“End of Game” – Asks of Government
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Intelligent Plastics Progress Report“The First 60 Days”
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Media Coverage >> Television and Radio
Plastics industry boosts profile and calls on governments for support to
boost investment, save jobsAugust, 18, 2009 - 05:55 pm Bouw, Brenda - (THE CANADIAN PRESS)
Intelligent Plastics Campaign
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Plastics industry boosts profileand calls on governments for support to boost investment,
save jobs.
August 18, 2009 Brenda Bouw, THE CANADIAN PRESS
Toronto StarTheStar.com | Business | Plastics industry calls on
Ottawa for supportTHE CANADIAN PRESS
Intelligent Plastics Campaign Media Coverage >> Print & Web
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.
Intelligent Plastics CampaignMedia Coverage - Economic Contributions
“The association represents more than 3,350 companies, and 106,000 employees across Canada, including fabricators, recyclers, resin and compound manufacturers, machine and tool makers, with annual revenues exceeding
$31 billion.”
“Plastics is the sixth largest manufacturing sector in Canada by value of shipments.”
“One of Canada’s most important economic engines, plastics are often forgotten as an industry in need of government backing.”
MACLEANS.CA Aug. 18, 2009
TORONTO STAR
CFTK TV
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.
Intelligent Plastics CampaignMedia Coverage - Social Contributions
“Plastic is a strategic element in our way of life and economy, we can’t afford to let it migrate to other places.”
“Plastic is a best-kept secret in terms of economic success and social impact who’s critical importance to Canada is often overlooked.”
“Plastics are essential in the making of a wide-range of products including; food packaging, medical equipment, solar panels, automobiles, electronics and building materials.”
“Campaign highlights how important plastics are to consumers.”
MACLEANS.CA Aug. 18, 2009
Amherst Daily News
Thespec.com
TORONTO STAR
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.
Intelligent Plastics CampaignMedia Coverage - Environmental Contributions
“More people need to be aware of ways plastics can help reduce greenhouse gases.”
“Plastics help make automobiles and airplanes lighter, and therefore use less fuel.”
“The industry is often overlooked and gets a bad reputation in such areas as recycling.”
“Need to work with government to increase the amount of recycling because it’s good for business and good for the environment.”
Canadian Bussiness
MACLEANS.CA Aug. 18, 2009
THE News
The Mississauga
NewsAug. 28, 2009
National reach – coast to coast – with coverage in BC, Alberta , Ontario , Quebec and the Maritime provinces.
Multi-media coverage – radio, print and television. Canadian Business and Macleans business coverage. 7 minute interview with Mark Badger on BNN aired coast to coast. Strong web presence on finance, money and business related
websites – Yahoo finance, AOL Money, MSM Finance, BNN.ca. Even coverage in Quebec – La Presse.
Audience reach: 16, 461,177
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Intelligent Plastics CampaignMedia Coverage Report Card
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Report CardQ3/09Sept. 16
Positive Media Reports: Audience Reach 16, 461,177
Intelligent Plastics Web: page views 1441
Meetings w/Government in process
Intelligent Plastics Campaign
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Update on changes at CPIA
Mark BadgerPresident & CEO
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Evolution of Core Offering
Promoting and Protecting the Plastics Brand
Competitiveness Programs
Market Development
Technical Assistance
Today
Yesterday
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VisionFour functional pillars promoting and protecting
the plastics brand for all industry participants – Toward EPIC Model
On End-of-Life Issues
Specific Product IssuesOutreach Communications
Competitiveness Enhancement
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CPIA now unified and focused on Promoting and Protecting the Plastics Brand – Building around the EPIC model.
CPIA has made changes to more efficiently spend membership dollars.
CPIA is introducing aggressive, pro-active programs to create a more favourable business environment for the industry.
CPIA is reaching out to new potential members and downstream users of plastic to amass the resources necessary to execute strategies successfully.
We need your help to unify the industry behind this bold, new undertaking – help us recruit your peers, customers and suppliers.
Together – We Have Work to Do!
Together – We Have Work To Do
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One Unified Voice for thePlastics Industry
Michelle CowellGoing for Gold