Plastics Machinery Shipments Decline in Fourth Quarter
The Plastics Industry Association’s Committee on Equipment Statistics (CES) report shows fourth quarter shipments of primary plastics machinery are down 12.0% from the third quarter and down 17.0% compared to the same period in 2023.
The Plastics Industry Association’s (PLASTICS) Committee on Equipment Statistics (CES) released fourth quarter shipment data for primary plastics machinery, covering injection molding and extrusion activities in North America. Initial estimates of $288.8 million for the final three months of 2024 reflect a 12.0% decrease from the revised third-quarter estimate. When compared to the same period in 2023, the value of shipments was down 17.0%.
Twin-screw extruders shipments saw the steepest decline, down 48.4% quarter over quarter and 8.3% year over year. Single-screw extruders shipments fell 24.8% quarter over quarter, and 32.6% year over year. Injection molding shipments declined the least, down 5.5% quarter over quarter and 16.1% year over year.
Perc Pineda, Ph.D., chief economist at PLASTICS, says that plastics machinery shipments retreated from their third-quarter gains in the fourth quarter. “Plastics equipment shipments pared back their gains in the third quarter, underperforming forecasts,” Pineda says. “Weakness in U.S. manufacturing persisted in the fourth quarter, driven by increased economic policy uncertainty amid expectations of a shift in U.S. trade policy after the November elections.”
In its quarterly survey of plastics machinery suppliers, the CES says 83% of respondents expect market conditions to remain steady or improve over the next 12 months. Additionally, 43% of respondents reported that quoting activity was holding steady, while 31% reported an increase in quoting activity compared with the previous quarter. That tracks with Gardner Business Index: Plastics Processing figures for February 2024.
As 2024 closed, U.S. plastics equipment total exports decreased 5.5% to $329.0 million in the fourth quarter. Mexico and Canada remained the largest export markets for plastics machinery, with total exports to these countries reaching $157.9 billion, accounting for 48% of U.S. total plastics machinery exports.
“Plastics demand in the U.S. remains stable,” Pineda adds. “However, slack in plastics production is leading to weaker-than-expected demand for primary plastics equipment. Additional cuts in the Fed funds rate are still projected this year. Lower interest rates and greater clarity on U.S. economic policy, particularly on trade, would help reduce uncertainties across the plastics industry supply chain.”
Equipment shipments were down on a quarterly and year-over-year basis. Source: PLASTICS