Industry Analysis & Industry Trends
The Plastic Bag and Film Manufacturing industry has struggled over the past five years due to strong and rising competition from cheaper imported products, and sluggish domestic demand for plastic bags and films. Imports from countries with lower operating costs, particularly China, dominate the industry's generic product segments, including high-density polyethylene (HDPE) supermarket bags, low-density polyethylene (LDPE) retail bags and other plastic garbage bags. Many small-scale local companies that manufacture these products have been increasingly unable to compete on price, which has caused enterprise and establishment numbers to decline over the past five years.
Revenue is expected to fall at a compound annual rate of 0.3% over the five years through 2015-16, to reach $2.2... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits a medium level of capital intensity. In 2015-16, for every dollar spent as wages, an estimated $0.24 is invested in capital. The level of investment required to manufacture industry products is quite high, as companies use large-scale resin extrusion machines that are capable of producing large product volumes. Operators also require access to the most efficient machinery and equipment available, as this can lead to larger production volumes and lower per-unit production costs.
However, fairly high wage expenses slightly offset these capital requirements, which results in a moderate capital intensity level. Although operators use automated processes, employees are still required to monitor machinery and ensure that production is safe... purchase to read more