Plastic scrap sourcing, automation sales slump, Wilmington Machinery sold: Machinery Minutes, Feb. 17, 2024

On this episode of Machinery Minutes, you'll hear about U.S. plastics processors and recyclers searching for domestic suppliers of plastic scrap as they face the prospect of significant tariffs on goods imported from Canada and Mexico. 

In other news, sales of automation equipment are in a slump, with few signs that things are going to pick up this year. The Association for Advancing Automation (known as A3) recently released sales figures for 2024. 

And a private investor has purchased Wilmington Machinery, and founder Russ LaBelle has stepped away. The blow molding and injection molding machinery maker pledged to continue honoring contracts with customers, and hopes to double its workforce this year. 

Transcript

Welcome to Machinery Minutes, where at the beginning of each week I share with you three things you need to know in about three minutes. You can read the complete stories on plasticsmachinerymanufacturing.com. 

No. 1 -- U.S. plastics processors and recyclers are scrambling to find domestic suppliers of plastic scrap as they face the prospect of significant tariffs on goods imported from Canada and Mexico, according to a recycled resin market analyst. 

President Donald Trump has paused imposing 25 percent tariffs on Mexico and Canada as leaders of the three countries negotiate to address U.S. concerns including illegal immigration and drug smuggling. 

Although the tariffs are delayed, they are not yet out of sight, and there are a lot of potential implications for plastics recyclers, processors and converters, Emily Friedman recently told PMM. Friedman is the recycled plastics senior editor for ICIS, a leading chemicals and energy intelligence provider. 

About a decade ago, the United States was a large exporter of plastic waste, sending much of it to China. However, global treaties and legislation curtailed that practice, and the U.S. is now a net importer of plastic scrap from Canada. Read more of Friedman’s observations in an article headlined: “Plastics processors, recyclers look for imported scrap alternatives amid tariff threats.” 

No. 2 – Sales of automation equipment are in a slump, with few signs that things are going to pick up this year. 

In North America, the Association for Advancing Automation (known as A3) said the fourth quarter of 2024 ended strong, but for the year, companies ordered 31,311 robots valued at $1.963 billion, a slight increase of just ½ percent in units and 0.1 percent in revenue compared with 2023.  

The sales record was set in 2022 with 44,196 robots valued at $2.38 billion sold in North America. More than 50 percent went to the automotive industry in 2022.  An A3 official blamed the decline on adoption of electric vehicles moving slower than automakers expected.  

Read Editor Ron Shinn’s story headlined “Automation sales nearly flat in 2024” to learn more about robot sales here and in Germany. 

No. 3 – A private investor has purchased Wilmington Machinery, and founder Russ LaBelle has stepped away. 

The Wilmington, N.C.-based blow molding and injection molding machinery maker declined to release the purchaser's name or price of the acquisition, finalized in January. It pledged to continue honoring contracts with customers.  

The company announced it hopes to double its 25-person-strong workforce this year.    

Read more about the sale and about how LaBelle grew the company for more than five decades by reading the story online headlined: “Wilmington Machinery sold, founder Russ LaBelle steps away.” 

Those are my Top 3 items you need to know for this week. We have a new list every Monday.