Plastic Manufacturers: Profits, Pollution, And The Price Of Production

Plastic is a cost-effective material used in high-volume manufacturing across the world. In 2023, the global plastic market size was estimated at USD 624.8 billion, with North America accounting for 17% of global plastic materials production. Companies produce over 450 million metric tons of plastic each year, with much of it ending up in landfills, on roadsides, and in rivers and oceans. The plastic industry is dominated by a few major manufacturers, including Dow Chemical and ExxonMobil chemical division, as well as consumer goods companies like Coca-Cola, PepsiCo, and Nestlé.

The cost of plastic parts manufacturing

The cost of manufacturing plastic parts also depends on the volume of production. Plastics are a very good fit for manufacturing and their use becomes even more cost-effective as volume increases. This is due to the consistency of parts and the wide range of mechanical properties available through plastic material selection.

The type of mould used also affects the cost of manufacturing plastic parts. For example, a steal or aluminium mould for injection moulding can cost anywhere from $8,000 to $20,000, with a per-unit cost of around $2-$3. On the other hand, a silicon mould may be used for a smaller number of units, but at a higher per-unit cost of $20-$40.

It is also worth considering the upfront costs of manufacturing plastic parts. These costs can vary depending on the manufacturer and the specific requirements of the project. Some manufacturers may offer lower upfront costs, while others may require a higher initial investment.

The hourly molding machine rate

Some moulders charge the same hourly rate regardless of press size, which can range from $9.07 to $44 per hour. Others charge different rates depending on the job, with automatic jobs costing less ($55 per hour) than those requiring operators ($65 per hour). In the Chicago area, the hourly molding rate is $65 per hour with an operator and $50 per hour for auto in New England.

The MAPP report examines labour/burden rates, which is the average machine operator labour rate divided by the number of press operators per machine. This can impact the hourly rates manufacturers put on their machines, as can the manufacturing environment and industry served.

The impact of the plastic manufacturing industry on economic growth

The plastic manufacturing industry has a significant impact on economic growth, with the global plastic market size estimated at USD 624.8 billion in 2023. The industry is expected to continue growing, with a projected CAGR of 4.2% from 2024 to 2030.

Plastics are used in high-volume manufacturing across various industries, including medical, automotive, electronics, and housewares, due to their cost-effectiveness and consistency. As volume increases, the cost advantages of plastics become even more pronounced, making them a popular choice for manufacturers.

The United States plays a major role in the global plastics industry, with many of the world's largest plastic manufacturers based in the country, such as Dow Chemical and ExxonMobil. In 2023, North America accounted for 17% of global plastic materials production, with plastics production in the U.S. totaling 130 billion pounds.

However, the plastic manufacturing industry has also faced criticism for its environmental impact, with companies producing over 450 million metric tons of plastic waste each year. A study published in Science Advances found that 24% of branded plastic waste came from just five companies: Coca-Cola, PepsiCo, Nestlé, Danone, and Altria.

The use of plastics in high-volume manufacturing

The global plastic market size was estimated at USD 624.8 billion in 2023 and is expected to grow at a rate of 4.2% from 2024 to 2030. Companies across the world produce over 450 million metric tons of plastic each year, with much of it ending up in landfills, on roadsides, and in rivers, oceans, and streams. The United States is a major player in the industry, with many of the world's largest plastic manufacturers based in the country, such as Dow Chemical and ExxonMobil. In 2023, North America accounted for 17% of global plastic materials production, with plastics production in the U.S. totalling 130 billion pounds.

Plastics are used in high-volume manufacturing due to their cost-effectiveness, the consistency of parts, and the wide range of mechanical properties available through plastic material selection. Injection moulding is the most common form of manufacturing for high-volume production, and it can handle a wide range of plastic materials. It is used for applications ranging from consumer products to industrial components. Other moulding techniques used in the plastics manufacturing process include blow moulding, rotational moulding, and extrusion. The choice of moulding technique depends on the type of plastic, the complexity of the part, and the production volume. For example, extrusion is ideal for creating long, continuous shapes, while injection moulding is suitable for high-volume production of complex parts.

Quality control is crucial in plastics manufacturing to ensure consistent, high-quality products. It involves various tests, checks, and procedures to ensure that every part meets the specified standards. Quality control starts at the design level, where engineers use Computer-Aided Design (CAD) software to model parts and analyse their performance and manufacturability. Raw materials are also tested for properties such as viscosity, colour, and melting point.

The market size of the plastic and resin manufacturing industry

The global plastic market size was estimated at USD 624.8 billion in 2023, and is expected to grow at a rate of 4.2% from 2024 to 2030.

Companies across the world produce over 450 million metric tons of plastic each year, with much of it ending up in landfills, on roadsides, and in rivers, oceans, and streams. The top five companies producing plastic waste are Coca-Cola, PepsiCo, Nestlé, Danone, and Altria.

Plastics are used to fabricate products in every major industry, including medical, automotive, electronics, and housewares, due to their cost advantages and the consistency of parts. The cost-effectiveness of plastic increases as volume increases, and the wide range of mechanical properties available through plastic material selection allows for high-volume manufacturing.

Frequently asked questions