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The Plastics Industry Association (PLASTICS) announced today that shortages caused by the supply chain have hindered shipments of primary plastic processing machinery, falling for the second consecutive quarter.

According to statistics compiled by the Plastics Equipment Statistics Committee (CES), the estimated value of the company's injection molding and extrusion equipment shipments in the second quarter of this year was estimated at 320.9 million U.S. dollars. This is a decrease of 4.2% from the first quarter and a decrease of 11.1% in the first quarter. However, compared with the second quarter of 2020, plastic machinery shipments increased by 21.2%. The second quarter value of shipments varies by device type:

However, these figures do not fully reflect the overall situation of the plastic processing equipment market. Perc Pineda, chief economist at PLASTICS, said that new orders for plastic equipment have been increasing, but ongoing supply chain problems—parts shortages—have lengthened the order-to-delivery time. "This explains the decline in shipments in the second quarter. Plastic equipment shipments are higher than the same period last year for the third consecutive quarter. The underlying trend in plastic equipment demand is still sloping upward, still in sync with the strong economic recovery," Da said.

The plastic machinery suppliers who predict the future seem to basically agree with this analysis. In the second quarter survey conducted by CES, 92.7% of respondents said that they expect market conditions to improve or remain stable in the next quarter. Compared with the 93.5% of respondents who expressed the same opinion in the first quarter survey, this percentage is slightly lower. As for the next 12 months, 78.7% of respondents expect market conditions to stabilize. This is also lower than the 93.0% of respondents in the last quarter's survey that expected growth in the next 12 months.

Compared with the first quarter, the total exports of plastic machinery in the second quarter of 2021 fell by 6.9%, to a total of 367.6 million U.S. dollars. Mexico and Canada are still the largest export markets for American plastic machinery. Exports to USMCA partners in the second quarter totaled 177.2 million US dollars, accounting for almost half of all plastic machinery exports. Imports increased by 3.5% to US$874 million, resulting in a trade deficit of US$506.8 million. The US plastic machinery trade deficit increased by 12.6% in the second quarter.

With the improvement of global economic conditions, the volume of trade is expected to increase this year. The World Trade Organization predicts that global merchandise trade will grow by 8.4% this year.

"Until the supply chain issues are resolved and the production lead time returns to normal, [we should] expect quarterly shipments of plastic machinery to fluctuate," Pineda said. "Nevertheless, the prospects for plastic machinery in the second half of the year are optimistic," he added.

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