North American Shipments of Plastics Processing Equipment Dip in Q1

First-quarter shipments of primary plastics machinery in North America dipped in value by 24.8% over the previous quarter to $261.9 million, according to a new report from the Plastics Industry Association (PLASTICS).

Year over year, the value of injection molding and extrusion equipment shipped fell 24.2%, the PLASTICS Committee on Equipment Statistics (CES) reported. 

Total US exports of plastics equipment fell 7.4% over the previous quarter, the survey found, while imports climbed 7%.

Results align with overall macro-economic trends.

“It is common to see lower shipments in the first quarter of each year,” explained study author Perc Pineda, PhD, chief economist for PLASTICS. “Long-term data confirms this consistent pattern. Accounting for such seasonality, shipments decreased by 8.5% quarter over quarter. This time, plastics machinery suppliers reacted in alignment with the overall pullback in the macro-economy and a still high-interest-rate environment.”

Declines by equipment type:

Most survey participants — 74.4% — expect steady or improved market conditions over the next 12 months.

Related:The Wide World of Plastics at NPE2024

Slow growth projected.

"The US economy is poised for another year of growth, albeit at a slightly lower rate,” Pineda said. “However, growth in housing is hampered by higher borrowing costs, which also applies to higher capital expenditure financing in the business sector, including equipment investment in plastics manufacturing. 

“Manufacturing holds significant potential for growth, currently hindered by prolonged inventory adjustments and the rebalancing of consumption between goods and services," added Pineda.