When looking into the overall supply chain in dealing with materials for a given supplier, it is important to look at the overall industry trends. At Rubber Captain, we track the trends in each industry in order to reduce our customer's costs. In 2016 plastisc industry poses several interesting opportunities as well as some challenges.
Challenges
Among challenges in the plastic industry are the ever increasing costs in human resources, insufficient foreign labor, and energy and transportation issues.
The growth of the industry has been affected by the global condition cropping up typically from the economic status in the developed nations such as EU and the US as well as the re-location and the presence of the low-cost producing nations.
Further, there are increases in costs of transportation due to the surge in fuel costs. Operational costs cannot go unmentioned as the chain effects have also led to an approximate of eight percent increase in terms of packaging materials.
Opportunities
A huge investment in ports, railways, power, and telecom has been a driver for growth. The plastics industry sees growth at more than 10% each year. Further, high demands in domestic use of plastics based goods are sustained by fiscal policies driving household consumption. Exports in the industry in various countries had increased total turnover ratio due to the available packaging materials and the aggressive export promotions made by the industry.
Industrial Automotive Plastics Parts
Plastics account for around 10-15 % of the total weight of cars seen on roads these days. Plastics are significantly lighter than the metals used in cars, which means plastics cover much more than 15% of the parts used in cars.