Maya Ellison
The plastics industry is one of the largest industries in the world, with a significant impact on the global economy and employment. In 2020, the industry generated $394.7 billion in shipments, rising to $541.5 billion when suppliers were included. The industry provides direct employment to over 1.5 million people in the European Union alone, and the US plastics industry employs over 1 million people across 16,000 manufacturing sites. Despite facing challenges such as plastic waste and environmental concerns, the industry continues to grow and innovate, with projections for the 3D printing plastics market expected to reach USD 1,907 million by 2023. While the plastics industry is hiring, it faces a skilled labour shortage, creating a gap between the demand for and supply of skilled workers.
| Characteristics | Values |
|---|---|
| Size of the industry | One of the largest industries in the world |
| Impact on the global economy | $394.7 billion in shipments in 2020, $541.5 billion when suppliers are included |
| Employment | Provides direct jobs to more than 1.5 million people in the European Union, 1 million+ in the US |
| Employment growth | Between 2012 and 2019, employment in plastics manufacturing rose by 1.6% |
| Labour supply | Tight labour supply, particularly of skilled workers |
| Labour market dynamics | The pandemic caused shifts in the labour market, with workers moving between industries and geographic locations |
| Wages | Competitive |
| Job openings | An average of 71,500 job openings for engineers projected annually between 2016 and 2026 |
| Environmental impact | Major contributor to pollution and waste, facing pressure to develop sustainable solutions |
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What You'll Learn
The plastics industry is hiring, but there is a skills gap
The plastics industry is a vital part of the global economy, with a significant impact on employment and innovation. The industry provides direct employment to over 1.5 million people in the European Union alone, and the US plastics industry employs over 1 million people across 16,000 manufacturing sites. The global plastics industry continues to expand, with the market estimated to be valued at over USD 643.37 billion by 2029.
Despite the industry's strong growth and employment figures, there is a skills gap in the manufacturing sector. This skills gap has been widening in the US due to several factors. Firstly, demographics play a role, as the number of new entrants to the labor market is rising slower than those retiring or leaving the workforce. Secondly, the US educational curriculum is not adequately preparing students for the future workforce, particularly as technology enhances manufacturing processes and workers' skills become outdated. Advances in technology have also intensified labor demand, creating new jobs and occupations that require specific skill sets.
Regional economic development also impacts labor market flexibility, as new graduates are often hesitant to move to rural areas and prefer to remain in big cities. Additionally, the pandemic has exacerbated the shortage of workers in the manufacturing sector, with some leaving due to health concerns or exploring opportunities for higher wages in other industries. The percentage of skilled labor for manufacturing was already low before the pandemic, and the current tight labor supply persists.
To address the skills gap, companies can invest in training programs, technical schools, and apprenticeship programs to upskill their workers and prepare them for the evolving manufacturing landscape. However, the skills gap is not a short-term issue, and manufacturers may continue to face challenges in meeting customer demand and implementing new technologies. The plastics industry must also balance innovation and growth with environmental accountability, addressing the significant contribution of plastic waste to environmental pollution.
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The impact of the pandemic on the plastics industry
The COVID-19 pandemic has had a significant impact on the plastics industry, highlighting its importance and creating opportunities for growth and innovation.
The pandemic has brought to light the essential role of plastics in various sectors, particularly in healthcare and medical device manufacturing. Plastic companies have been able to showcase their contributions to helping the world fight the virus, with their products being used in hospitals and for lifesaving work. This has helped counter negative perceptions and sentiments towards plastics, as consumers have recognised the value and convenience that plastic products provide, especially during a global health crisis.
From an operational perspective, the pandemic has presented challenges and opportunities for the plastics industry. On the one hand, there have been labour supply issues, with skilled workers exploring opportunities in other industries due to health concerns and economic factors. This has resulted in fluctuations in capacity utilisation rates. However, the pandemic has also created a chance for the industry to reposition itself and adapt to changing market demands.
The plastics industry is a significant contributor to the global economy, with a large impact on employment and innovation. In 2020, the industry was responsible for $394.7 billion in shipments, and when including suppliers, its impact increased to $541.5 billion. The industry provides direct employment to over 1.5 million people in the European Union alone, with similar figures in the United States.
Despite facing challenges related to plastic waste and environmental concerns, the plastics industry is projected to grow and innovate, particularly with advancements in 3D printing and other technologies. Manufacturers are increasingly focusing on sustainability and developing creative solutions to address customer needs and environmental accountability.
Overall, the COVID-19 pandemic has had a complex impact on the plastics industry, highlighting its essential role in society while also presenting operational challenges and opportunities for growth and innovation.
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The environmental impact of the plastics industry
Plastic pollution has become one of the most pressing environmental issues, with rapidly increasing production of disposable plastic products overwhelming the world's ability to deal with them. Plastic is everywhere—from food packaging to healthcare, construction materials, furniture, and textiles. It is a relatively new invention in human history, with some of the first examples dating back to the late 1800s, but its versatility and low production cost have made it one of the most widely used materials today.
The durability of plastics means that discarded items can remain in the environment for generations. Plastic pollution can fragment into smaller pieces, known as microplastics, which can be found in every ecosystem on the planet, from the Antarctic tundra to tropical coral reefs, and even in the human body. Microplastics have also been found in more than 100 aquatic species, including fish, shrimp, and mussels, and can cause digestive issues or even death. They have also been found to cause liver and cell damage and disrupt reproductive systems.
The environmental impacts of discarded plastics include littering, leaching of toxic components, and the contamination of ecosystems and the food chain with microplastics. 85% of marine litter from land-based sources is plastic, which affects marine life and human health. Plastic waste leaks into aquatic ecosystems, polluting lakes, rivers, and seas, and altering habitats and natural processes. It reduces ecosystems' ability to adapt to climate change, directly affecting millions of people's livelihoods, food production capabilities, and social well-being.
In addition, plastic production contributes to climate change. Annual emissions related to plastic production in the EU amount to around 13.4 million tonnes of CO2, or about 20% of the chemicals industry's emissions. The World Economic Forum projects that without intervention, the global plastics industry will account for 20% of total oil consumption and up to 15% of global carbon emissions by 2050. Furthermore, the production and conversion of fossil fuels into new plastic products contribute to greenhouse gas emissions, with the OECD reporting that emissions associated with the life cycle of plastic products are expected to double by 2060 unless human behavior changes.
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The global economic impact of the plastics industry
The plastics industry is one of the largest industries in the world, with a significant impact on the global economy and employment. In 2020, the industry's shipments totaled $394.7 billion, and when including suppliers, the industry's impact on the global economy increased to $541.5 billion. The industry provides direct employment to over 1.5 million people in the European Union alone. The US plastics industry is estimated to account for $432 billion in shipments and 1,003,000 jobs, with the number of employees increasing to 1.5 million when including upstream suppliers. The European plastics industry is responsible for around 350 billion EUR in turnover annually and employs 1.45 million people across 62,000 companies.
The plastics industry has a significant impact on global trade, with a presence in both developed and developing countries. The industry's impact on the economy is felt through its direct employment opportunities, as well as its influence on other industries such as healthcare, food packaging, and consumer goods. The industry's growth is driven by technological advancements and innovation, with projections for the 3D printing plastics market expected to reach USD 1,907 million by 2023. The industry's growth is also supported by regional economic development and the availability of competitive wages.
However, the plastics industry also faces challenges, including environmental concerns and a skills gap in manufacturing. Plastic waste has become a major environmental issue, with the industry contributing significantly to pollution. To address this, manufacturers must develop sustainable solutions to reduce their carbon footprint. Additionally, the industry faces a labor shortage, particularly for skilled workers, due to factors such as shifting labor market dynamics and preferences for certain industries or geographic locations.
Despite these challenges, the plastics industry remains vital to the global economy. Its impact is felt through its direct employment opportunities, innovation, and its role in providing essential products for various industries. As the industry continues to innovate and address environmental concerns, it is expected to maintain its significant role in the global economic landscape.
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The future of the plastics industry
The plastics industry is one of the largest industries in the world, with a significant impact on the global economy and employment. In 2020, the industry's shipments totaled $394.7 billion, increasing to $541.5 billion when suppliers were included. The industry provides direct employment to over 1.5 million people in the European Union and over 1 million people in the United States.
Despite the benefits of plastics, the industry faces challenges, particularly regarding environmental concerns and plastic waste. Currently, about 90% of plastics worldwide are made with fossil resources, contributing to greenhouse gas emissions and pollution. To address these issues, the industry is exploring more sustainable practices and innovative solutions. There is a growing emphasis on recycling, with advancements in chemical recycling and depolymerization processes, as well as the integration of smart materials and unique functionalities. Additionally, the industry is exploring alternative methods of plastic production, such as biomass, plastic waste-to-energy, and CO2 capture, which can reduce the environmental impact of plastic manufacturing.
To maintain their competitiveness, plastic manufacturers must be willing to innovate and address their customers' pain points. By embracing new technologies and industry trends, manufacturers can capitalize on growth opportunities and enhance their market position. The industry's commitment to sustainability is evident in the increasing adoption of bioplastics and materials sourced from renewable resources, which reduces the ecological footprint of traditional plastics and caters to consumers' preferences for environmentally conscious alternatives.
In conclusion, the future of the plastics industry holds promise for a more sustainable, innovative, and digitally-driven landscape. By addressing environmental concerns, embracing new technologies, and providing value-for-money services, the industry can continue to thrive and positively impact the global economy and employment.
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Frequently asked questions
The plastics industry is one of the largest industries in the world, with $394.7 billion in shipments in 2020, and $541.5 billion when suppliers are included. The industry provides direct employment to over 1.5 million people in the European Union alone.
The plastics industry is hiring, but there is a skills gap, particularly for skilled workers. The industry relies on engineers throughout its value chain, and an average of 71,500 job openings for engineers is projected annually between 2016 and 2026.
The pandemic caused a tight labour supply in the plastics industry, as labour preferences shifted due to health concerns and economic reasons. The movement of labour occurred between geographic locations and industries, with some workers in the manufacturing sector exploring opportunities for higher wages in other industries.
Plastic waste has become a major environmental problem, to which the plastics industry contributes a significant amount of pollution. Manufacturers of plastics must develop sustainable solutions to reduce their carbon footprint.
