the plastics industry globally – challenges and opportunities npe2015 orlando, fl
TRANSCRIPT
The Plastics Industry Globally – Challenges and Opportunities
Presented By:
Michael D. Taylor
Senior Director, International Affairs and Trade
AgendaBackground on SPI
Overview of U.S. Plastics Industry
Trends in Materials
Challenges
Opportunities
Innovations
Q&A
Founded in 1937, SPI is the only U.S. trade association representing ALL segments of the plastics industry
Overview of U.S. Plastics Industry
4
The U.S. Plastics Industry
In 2012…• Shipped more than $373 billion
in goods• Employed 892,000 people• Operated 15,949 facilities in every
U.S. state• Plastics manufacturers spent more than
$9.6 billion on new capital equipment
In 2013…• 3rd largest industry in U.S.• Record-breaking domestic demand
– Up 6.5% to $267 billion
Plastics have Historically Grown
Faster than all Manufacturing
• Plastics manufacturing
employment grew 0.1
percent per year since 1980
• The value of manufactured
shipments grew by 2.3
percent per year since 1980
• Productivity grew by 2.2
percent per year since 1980
Source: SPI “Size and Impact of the U.S. Plastics Industry” (2012)
U.S. Demand for Plastics sets New High Level
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013$0
$50
$100
$150
$200
$250
$300
Machinery Molds Plastic Products Resin
$ in
bill
ion
s
Apparent Consumption = Shipments + Imports – Exports
Source: SPI “Global Business Trends” (2014)
Positivetrade balanceof $12.6 billion
$49.5BPLASTICS 7.3%
2014 Trade Statistics
In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1 percent from 2013
$35.1BRESINS 1.8%
$25.0BPRODUCTS 5.1%
$528.3MMOLDS 10.1%
$1.7BMACHINERY 7.7%
Source: U.S. International Trade Commission
Trends in Materials
Global Polymer Production
17%
11%
9%HDPE
LLDPE
LDPE
37%
26%
18%
8%5%4%2%
Polyethylene (PE)
Polypropylene (PP)
Polyvinyl Chloride (PVC)
Polyethylene Terephthalate (PET)
Polystyrene (PS)
Acrylonitrile-Butadiene-Styrene (ABS)
Polycarbonate (PC)
Engineering Polymers
• The main applications of engineering polymers are automotive (under-the-hood, external, and interior products); medical devices and products; electrical and electronic products, and information storage applications; building and construction materials; aviation products; appliances; optical lenses; and audio and video equipment.
• The value of the global market for engineering plastics is estimated to increase to $90 billion by 2020, due to a growing demand for lighter and more efficient materials.
Plastic Pipe
• PVC is most widely used for plastic pipes, but in the future, high density polyethylene (HDPE) will compete with PVC in potable water distribution. Crosslinked polyethylene (PEX) also will become more common.
• Plastic pipes will continue to substitute for competing materials such as steel, copper, and ductile iron in many construction applications due to its low cost, ease of installation, and performance advantages.
• The world market for plastic pipes is predicted to exceed 6.5 billion meters by 2015.
Emulsion Polymers
• The emulsion polymers market is driven by growing demand in the paint, coatings, and adhesives market. Emulsion polymers are also used to produce synthetic rubber, textile coatings, and resins.
• Recent environmental regulations for volatile organic compounds in the U.S.A. and Europe have increased have demand for water-based emulsion polymers, which are not flammable or toxic.
• The global emulsion polymer market is expected to reach $41.63 billion by 2019.
Polymer Foam
• Polymer foam is used in many consumer products for support, durability, and comfort.
• The global polymer foams market is driven by automotive, building, and construction applications, along with packaging, furniture, and bedding.
• The global polymer foams market is estimated to reach $131.1 billion by 2018.
Plastic Films
• Plastic films have numerous applications in the packaging industry.
• The global agricultural film market is expected to reach $9.66 billion by 2019.
• The market is driven by the development of high-performance plastic films. – Excellent barrier properties, chemical resistance,
and mechanical strength. – Packaging applications, including biodegradable
packaging.– Solar photovoltaic applications.
Electroactive Polymers
• The most common applications of electroactive polymers are in antistatic packaging and protection against electrostatic discharge and electromagnetic interference (EMI/ESD).
• The global electroactive polymers product market is expected to be worth $3.4 billion by 2017.
• North America is the largest market for electroactive polymers (estimated to reach $2.2 billion by 2017), followed by Europe.
Bioplastics
• Bioplastics are plastics derived from renewable biomass sources, such as vegetable fats and oils, starches, or microbiota. – Cellulose-based plastics– Polylactic acid-based plastics– Poly-3-hydroxybutyrate (PHB)– Polyhydroxyalkanoates (PHA)– Polyamide 11 (PA 11)– Bio-derived polyethylene
• The global bioplastics market will grow at a CAGR of 33.9 percent over the period of 2011-2015.
• Bioplastics are increasingly used in packaging, the consumer goods industry, and even architecture.
Medical Polymers
• Medical polymers include biodegradable polymers, flexible and rigid polyvinyl chloride (PVC), nylons, polyurethanes, and Teflon products.
• Medical polymers are used in a variety of medical devices, such as wound dressing materials; implants (orthopedic, lens, breast, hip, stents, neural, etc.); implantable defibrillators; blood filters; contact lenses; automated analyzers; diagnostic and imaging devices; labware; surgical screws, nails and plates; catheters and tubing; surgical gloves, sutures and shunts; and tissue scaffolds and guides.
• The medical polymers market is estimated to exceed $3.5 billion by 2018
Challenges to the Industry
19
The Impacts of Economic Policy Uncertainty in the U.S.
The Impacts of Economic Policy Uncertainty in Europe
The Impacts of Economic Policy Uncertainty in China
A Challenging Year Coming to a Close
Problematic legislation
• Extended producer responsibility
• Foodservice packaging bans
• Marine debris initiatives(Operation Clean Sweep)
• Product deselection basedon chemical content
• Bag bans or taxes
The Macroeconomic Impact of Federal Regulations
• A new report by NAM finds that the average U.S. company pays $9,991 per employee per year to comply with federal regulations.
• The average manufacturer in the United States pays nearly double that amount—$19,564 per employee per year.
• Small manufacturers, or those with fewer than 50 employees, incur regulatory costs of $34,671 per employee per year. This is more than three times the cost borne by the average U.S. company.
Some Key Findings
Total cost of federal regulations in 2012 was $2.028 trillion (in 2014 dollars).
The annual cost burden for an average U.S. firm is $233,182, or 21 percent of average payroll.
Eighty-eight percent of those surveyed say that federal regulations are a top challenge for their firm.
Regulatory Compliance Costs per Employee per Year for Manufacturers, 2012 (in 2014 Dollars)
$19,564Average of AllManufacturers*
$34,671Small Manufacturers(< 50 Employees)
$18,243Medium Manufacturers(50−99 Employees)
$13,750Large Manufacturers(100+ Employees)
*The average compliance costs for manufacturers to comply with federal regulations ($19,564 per employee per year) is nearly double the rate seen for all U.S. businesses ($9,991 per employee per year).
For small manufacturers with fewer than 50 employees, compliance costs per employee are more than three times the average of all firms.
Opportunities for the Industry
26
A Proactive Approach to Sustainability
• High number of activities pursued relative to sustainability • Seek opportunities to invest in sustainability • Integrate sustainability into business practices • Shape regulation actively • Communicate engagement in sustainability activities to external
audiences • Seeks external views regarding its sustainability activities
Strong Performers Share Certain Characteristics
• They set aggressive external targets or goals for their sustainability initiatives.
• They have a unified sustainability strategy with clearly articulated strategic priorities.
• They set aggressive internal targets or goals for their sustainability initiatives.
• A broad leadership coalition is involved in shaping or co-creating the sustainability strategy, goals, and milestones.
• The financial benefits of sustainability are clearly understood across the company.
Green Goes Mainstream in the U.S.
• In 2010, the Natural Marketing Institute’s LOHAS (Lifestyles of Health and Sustainability) Consumer Trends Database found that 83 percent of the U.S. population is involved in green values, activities, and purchasing.
• This 83 percent of U.S. adults is now creating a $290 billion market for green consumer goods.
Green Consumerism Going Global?
• Globally, most consumers believe their purchases can make a difference and many intend to increase their eco-spending in the next year.
• Furthermore, the majority of consumers are willing to pay more for eco-friendly products and less likely to switch brands, when the product is green.
Source: Forest Stewardship Council Global Consumer Research Highlights
Moving the Needle on Plastics Recovery
• Zero Waste Zone at NPE2015
• Recycleplastics365.org
• SPI recycle survey
• Sustainability benchmarking tool
• Facilitating collaboration amongst plastics recycling organizations
• Inaugural member of the Recycling Partnership
• Establishing a plastics collection pilot with the Healthcare Plastics Recycling Council
80% Reduction in Concentration of Pellets
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100
200
400
600
800
1000
1200
Ave
rage
pel
let
conc
entr
atio
n (p
elle
ts k
m -
2)
Trend: -33 ± 3 pellets km-2 year-1
r2 = 0.83, p<0.01
Trans-Pacific PartnershipTrans-Atlantic Trade & Investment Partnership
Global Opportunities in New Markets
• In 2013, U.S. plastics industry exports to the 11 TPP countries were more than $32 billion.
• Since 2000, plastics exports to TPP countries have increased 84 percent.
• In 2013, the plastics industry had a trade surplus with TPP countries of more than $13.8 billion.
• A high-standard TTIP would advance trade and investment liberalization and address regulatory and other non-tariff barriers.
• Based on 2011 trade flows, the U.S. plastics industry would be one of the top benefiting sectors with a total potential tariff savings of $465 million.
Trans-Pacific Partnership (TPP) by the Numbers
• 698 – The U.S. exported $698 billion in goods to TPP markets in 2013.• 97 – Small and medium-sized enterprises accounted for 97 percent of all
U.S. companies exporting goods to TPP countries in 2011.• 45 – TPP markets accounted for 45 percent of all U.S. goods exports in
2012.• 4 to 50 – America's share of imports into TPP countries varies considerably,
accounting for as little as 4 percent of Vietnam's total imports to as high as 50 percent of Mexico's total imports.
• 1.4 to 5.5 – TPP countries include both developed and developing countries, with projected growth rates ranging from 1.5 percent (Japan) to 5.5 percent (Peru).
• 38.5 – The U.S. plastics industry exported goods worth more then $38.5 billion to the TPP countries in 2014 up 4.6 percent from 2013.
Trade Agreements Benefit U.S. Exports
• Exports to FTA partners are up 57% since 2009.• 46% of U.S. goods exports go to our trade agreement partners.• U.S. export growth to our FTA partners (57%) has grown more rapidly
than exports to the rest of the world (44%).• In 2013, 21 of 50 states had record-high exports to these partners.• As a share of goods export value, exports from SMEs exceed the
overall worldwide average of 33% in many FTA markets, including new partners South Korea, Colombia, and Panama.
• The U.S. has a $15.2 billion trade surplus in non-oil products with our FTA partners, nearly 70% higher than the 2009 value nearly 70% higher than the 2009 value.
• In 2014, the U.S. plastics industry had more than a $20.9 billion surplus with our twenty FTA partners.
Source: U.S. Department of Commerce
U.S. Plastics Trade Balance by Segment
Source: U.S. International Trade Commission
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-10,000,000,000
-5,000,000,000
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
Resin Products Machinery Molds
U.S. Plastics Trade Balance with FTA Countries by Segment
Source: U.S. International Trade Commission
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-2,000,000,000
0
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
Resin Products Machinery Molds
Innovations
38
Will 3-D “Printing” Transform the Way We Make Things?
It will revolutionize the way consumer and other goods are manufactured.
• Subtractive vs. Additive Manufacturing• Make it at Home?• Affordable
World’s First 3-D Printed Car (Made with Plastics)
Flexible Solar Cell Woven into Fabric
• Wearable electronics are quickly becoming the fashion. And there could soon be a way to power those electronics indefinitely, now that scientists in China have developed a solar cell ‘textile’ that could be woven into clothes.
• The textile retains a power-generation efficiency close to 1% even after been bent more than 200 times, and can be illuminated from both sides.
• This solar cell textile consists of microscopic interwoven metal wires coated with an active polymer (to absorb the sunlight), titanium dioxide nanotubes (to conduct the electrons) and another active polymer (to conduct the holes).
Thank You!谢谢 Merci Vielen Dank Grazie ありがとうございました 감사합니다 Obrigado Спасибо Gracias Teşekkürler
Questions & Answers
Michael [email protected]