Shipments of injection molding and other primary plastics machinery totaled an estimated $299.3 million in the second quarter, about the same as the previous three months, but up 10 percent from the year-earlier quarter.
The United States continues as a strong point in the global plastics equipment market as overall manufacturing continues to thrive amid acclimate of stable energy supplies, declining energy prices, strong end markets, and stable capital markets.
The value of injection molding machinery increased 9 percent in Q2 of 2014 when compared with the total from Q2 of last year.
The data comes from the Committee on Equipment Statistics (CES) of SPI: The Plastics Industry Trade Association, and does not include some key players. Engel and Arburg, for example, are not members of the CES.
New bookings of auxiliary equipment for reporting companies totaled a record-breaking $108.0 million in the March-to-June period, up 21 percent when compared with the year-earlier quarter.
“The manufacturers of plastics machinery that anticipated strong demand and then allocated resources accordingly are being richly rewarded for their efforts in 2014, especially in North America,” says Bill Wood, a longtime plastics market economist who analyzes and reports on the plastics machinery market sector for the CES. “Those companies that hired new workers, increased production capacity, invested in inventories, or all of the above are reaping large returns on those investments this year. As I said before, we are entering the sweet spot of the capital expenditure cycle. It is a good time for plastics manufacturing in the U.S.”
There is a solid consensus among the reporting companies that North America is the global region where the strongest gains will be coming. Expectations for Latin America and Mexico declined when compared with the responses from last quarter. Expectations for Asia and Europe improved. As for the major end-markets, the respondents to the recent survey expect that automotive and medical will remain strong in terms of demand for plastics products and equipment. Expectations for the other major end-markets call for mostly steady conditions in the coming year.