As Plastics Machinery & Manufacturing marks its 10th anniversary, the staff is looking back on the events and issues that shaped our coverage over our first decade. Read more of our 10 Trends for 10 Years here.
By Bruce Geiselman
The past couple years have been a bumpy ride for suppliers, processors and customers, as disruptions have rippled through the supply chain, starting with the COVID-19 pandemic. Later, Hurricane Ida caused widespread refinery closures in the Gulf Coast area, driving up the price of resins and plastic parts.
However, the supply chain appears to be stabilizing.
The pandemic beginning in 2020 coupled with Hurricane Ida in 2021, which caused widespread refinery closures in the Gulf Coast area, exacerbated existing global supply chain issues and drove up the price of resins and plastic parts.
Initially, amid shutdowns, demand for many products plummeted. Then, it roared back. In addition to dealing with the closure of domestic refineries, labor shortages due to the pandemic hurt domestic resin and plastics production. Meanwhile, ships were backed up at ports waiting to be unloaded, creating a scarcity of empty shipping containers, making it difficult to import resin and plastics manufacturing equipment and parts.
Processors were hard-pressed to order resin from elsewhere, while Gulf Coast resin manufacturers struggled to source replacement equipment. In some cases, U.S. resin manufacturers cut down on the amount of resin they exported to help capacity here.
Prices for some resins nearly tripled in a year, said Esteban Sagel, a principal at Chemical and Polymer Market Consultants, which tracks the materials market.
Many processors increased their use of filler, foams or both to save money and reduce resin consumption.
The year-to-year increase in supply chain disruptions began slowing by mid-2023, according to Resilinc, a Milpitas, Calif., company that provides data regarding supply chain trends and risks to manufacturers and other clients. According to Resilinc, the sectors most affected by disruptions in the first half of 2023 included the healthcare, high-tech, automotive, aerospace, and food and beverage industries.
Bruce Geiselman | Senior Staff Reporter
Senior Staff Reporter Bruce Geiselman covers extrusion, blow molding, additive manufacturing, automation and end markets including automotive and packaging. He also writes features, including In Other Words and Problem Solved, for Plastics Machinery & Manufacturing, Plastics Recycling and The Journal of Blow Molding. He has extensive experience in daily and magazine journalism.
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