North American Plastics Machinery Shipments Finish 2023 Down
The Plastics Industry Association’s Committee on Equipment Statistics (CES) report shows fourth quarter shipments of primary plastics machinery ending the year off 19.5% compared to the same period in 2022.
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 $348.1 million for the final three months of 2023 reflect a 0.4% decrease from the revised figure of $349.6 million in the preceding quarter. When compared to the same period in 2022, the value of shipments was down 19.5%.
Single-screw extruders were off 19.5% on a quarter-over-quarter basis but showed a 4.9% year-over-year increase. Twin-screw extruders also experienced a 19.4% decrease quarter over quarter, and a sharper 23.8% decline comparing 2022 to 2023. Injection molding shipments increased 3.8% in the fourth quarter compared to the third quarter but were down 21.1% when comparing 2023 to 2022.
Perc Pineda, chief economist at PLASTICS, says that despite a modest upturn in the second quarter, there were minimal fluctuations in quarterly plastics machinery shipments in 2023. “The decline in U.S. manufacturing activity, coupled with a high-interest-rate environment, contributed to a slowdown in business investment spending, including in plastics machinery,” Pineda says.
In its quarterly survey of plastics machinery suppliers, CES says polling revealed a notable uptick in individuals anticipating improved market conditions over the next 12 months compared to the previous year. Nearly 83% expect conditions to either remain the same or improve, up from 56.1% in the prior quarter. That tracks with Gardner Business Index: Plastics Processing figures for January 2024.
As 2023 concluded, U.S. exports of plastics equipment increased 5.1% in the fourth quarter, reaching $284.6 million. Year-over-year exports grew by 19.6%. Mexico and Canada remained the top export markets for U.S. plastics equipment, combining for a share of 62.3%. Half of these exports, $124.3 million, went to Mexico, while less than a fifth — $53.0 million or 18.6% — of total exports went to Canada. Meanwhile, imports grew 11.7% quarter over quarter, reaching $427.6 million but were down 14.1% year over year.
