Plastics machinery shipments stayed low in 2019 despite fourth quarter increase

The value of primary plastics machinery shipments in North America increased in the fourth quarter, according to statistics from the Plastics Industry Association’s Committee on Equipment Statistics.

The preliminary estimate of shipments value from reporting companies in the fourth quarter totalled $316 million, a 7.7 per cent increase from the previous quarter.

While the shipments of injection moulding rose 9.6 per cent in the fourth quarter, sing and twin-screw extruder shipments decreased 0.9 per cent and 7.7 per cent respectively.

Although fourth quarter value of primary plastics machinery shipments improved, from a year ago shipments were 16.2 per cent lower.

The shipments value of twin-screw extruders fell significantly by 35.2 per cent, and 12.3 per cent for single-screw extruders.

Injection moulding machinery shipments value was down 14.9 per cent from the fourth quarter of 2018.

Perc Pineda, Chief Economist at PLASTICS, said: “The further quarter number confirm weaker 2019 plastics machinery shipments compared to 2018. Weaker business investment spending in 2019 due to uncertainties from trade and tariffs and overall weaker manufacturing activity explains the low numbers of plastics machinery shipments.”

“Our projection of a 2.3 per cent GDP growth in 2019 was on point based on the advanced estimates of the US Bureau of Economic Analysis. We expect another year of moderate US economic growth.”

“However, if business confidence turns optimistic this year now that there have been positive developments on trade and tariffs, and interest rates and expected to stay low, we could see better numbers for plastics machinery shipment.”