Pipe dream: Competing imports have piped revenue away from local manufacturers

The Plastic Pipe and Plastic Packaging Material Manufacturing industry has struggled over the past five years. The Australian manufacturing sector is having difficulty competing with low-cost foreign manufacturers that can import and sell products at far lower prices. In the industry, firms have grappled with intense import penetration in major downstream markets, which has limited demand for a range of domestically manufactured plastic injection-moulded products. Imports from China have flooded the local market to account for over 55% of total industry imports. Weaker demand from downstream manufacturing industries for plastic input materials, such as automotive vehicle components, has also negatively affected industry players over the past five years...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
-5.3%
Forecast Growth 18-23
Profit
Employment
9,351
Businesses
789

Industry Threats & Opportunities

  • Firms have grappled with intense import penetration in major downstream markets
  • Profitability has declined due to strong competition from low-cost companies overseas
  • Rising input costs will force prices up and encourage users to switch to substitute goods
  • Industry Report - Industry Locations Chapter

    Proximity to key downstream markets is an important determinant of geographic distribution in the industry. Enterprises are most heavily concentrated in Victoria and New South Wales, with these two states accounting for over 63.0% of the total enterprises in the industry. This trend has largely been due to the high density of manufacturing activity in these two states, which boosts demand for plastic components that are used as input materials.In addition, Victoria and New South Wales account for the largest share of Australia’s total population. Plastic product manufacturers in the industry often base their operations close to their downstream customers to reduce transportation costs and provide effective after-sales services. Sma...purchase to read more.

    Additional Insights for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Effective cost controls
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Household consumption expenditure in the Plastic Pipe and Plastic Packaging Material Manufacturing industry impact industry performance..

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    What's in this report

    What is the Plastic Pipe and Plastic Packaging Material Manufacturing Industry?

    Companies in the industry manufacture a variety of plastic products including plastic pipe, food packaging and furniture. Industry operators mainly use injection moulding and extrusion techniques, and occasionally blow moulding techniques. Products made from fibreglass are excluded from the industry.

    Industry Products
  • Packaging materials
  • Plastic furniture
  • Pipe and plumbing fittings
  • Plastic pipe
  • Plastic drums, pails, boxes and crates
  • Plastic tableware, kitchenware and household products
  • Other products
  • Industry Activities
  • Plastic furniture
  • Plastic light switch and plug
  • Plastic pipe and plumbing fitting
  • Plastic automotive component
  • Plastic bucket and garbage bin
  • Plastic food container and kitchenware
  • Plastic rod and tube
  • Plastic toilet fixture
  • Plastic watering can and clothes peg
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Household consumption expenditure
  • Demand from furniture retailing
  • Trade-weighted index
  • Demand from motor vehicle manufacturing

  • Current Performance
  • Revenue and profitability
  • Injected into

    the market

  • Export markets
  • Input costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Performance and structure
  • Opportunities

    and threats

  • Table: Plastic Pipe and Plastic Packaging Material Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plastic Pipe and Plastic Packaging Material Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Toy and Sporting Goods Manufacturing

  • Key Selling Industries
  • Industrial and Agricultural Chemical Product Wholesaling
  • Mining and Industrial Machinery Wholesaling

  • Products & Services
  • Packaging materials
  • Plastic pipe
  • Pipe and plumbing fittings
  • Other products
  • Plastic furniture
  • Plastic drums, pails, boxes and crates
  • Plastic tableware, kitchenware and household products
  • Chart: Plastic Pipe and Plastic Packaging Material Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturing sector
  • Construction sector
  • Wholesaling and retailing sectors
  • Chart: Major Market Segmentation for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Plastic Pipe and Plastic Packaging Material Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry

  • Industry Globalization
    Pact Group Holdings Ltd, Aliaxis Holdings Australia Pty Limited,
  • Table: Pact Group Holdings Ltd - financial performance
  • Table: Aliaxis Holdings Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plastic Pipe and Plastic Packaging Material Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blow Moulding
  • This process involves using the expulsion of air to shape plastic films of various densities into a desired shape.
  • Extrusion
  • A manufacturing process that uses compressive and shear stresses on hot and/or cold materials, such as polymers, to produce products of a desired shape.
  • Injection Moulding
  • This process involves forcing melted materials into a cavity and then removing the finished product when the material has solidified.
  • Polymer
  • A large molecular compound used as an input in the production of synthetic fibres such as plastic.
  • Thermoplastic
  • A polymer that becomes a liquid when heated and freezes into a glassy solid when cooled.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plastic Pipe and Plastic Packaging Material Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plastic Pipe and Plastic Packaging Material Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plastic Pipe and Plastic Packaging Material Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plastic Pipe and Plastic Packaging Material Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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