S&R Forklift Rentals
Civan’s OPA 6 Weld Dynamic Beam Laser wins Prism Award
Civan’s OPA 6 Weld, an entirely new class of laser that modulates beam shape at MHz rates without any moving parts, has received the 2022 Prism Award for Industrial Lasers Civan Lasers has received the prestigious 2022 Prism Award in the industrial lasers category. Civan was recognized for its OPA 6 Weld, a 7–14 kW single-mode CW dynamic beam laser (DBL) last week following a festive reception during SPIE Photonics West, by SPIE, the international society for optics and photonics, and Photonics Media. Based on Civan’s patented coherent beam combination, the DBL modulates beam shape as desired at speeds up to hundreds of megahertz without any moving parts. This entirely new category of lasers uses optical phased array coherent beam combining to merge many single-mode laser beams into a larger beam. Each laser’s light overlaps with other beams in the far-field, creating a diffraction pattern that allows manipulation of the beam shape in real-time. Phase modulators control the individual beams, and the resulting interference pattern can be adjusted to maximize the beam spot position and produce various shape patterns inscribed by the beam’s motion. In addition to controlling beam shape, Civan’s DBL also enables control of shape frequency, shape sequence, and depth of focus. The ability to control these parameters is a powerful tool for optimization of evaporation in the capillary, flow in the molten pool, and solidification of the melt for any laser materials processing application. Such control does away with pore, spatter, and crack formation while increasing feed rates and speeds in welding and additive manufacturing applications. “We are honored to receive this prestigious award, as it substantiates that Civan Lasers is the only company in the world that has been able to commercialize coherent beam combining technology for high-power applications,” says Civan CEO Dr. Eyal Shekel. “It also validates the strong impact that our dynamic beam-shaping lasers will have in the industrial laser materials processing market by helping to not only improve welding feed rates and additive manufacturing speeds but also to make new applications possible.”
Nucor completes acquisition of California Steel Industries
Nucor Corporation announced today that it has successfully completed its acquisition of a majority ownership position in California Steel Industries, Inc. (CSI) by purchasing a 50% equity interest from a subsidiary of Vale S.A. (Vale) for a cash purchase price of $400 million, adjusted for net debt and working capital at closing, as well as a 1% equity ownership stake from JFE Steel Corporation (JFE). CSI is a flat-rolled steel converter with the capability to produce more than two million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and ERW pipe. Key end-use segments served by CSI include customers in the construction, service center, and energy industries. “We are excited to officially welcome our CSI teammates to the broader Nucor family,” said Rex Query, Nucor’s Executive Vice President of Sheet and Tubular Products. “This joint venture gives us a strong presence in the Western region and grows our ability to produce an even wider range of value-added sheet products for our modern economy.”
PLASTICS promotes Patrick Krieger to Vice President for Sustainability
The Plastics Industry Association (PLASTICS) has promoted Patrick Krieger, Senior Director for Materials & Sustainability, to the newly created role of Vice President for Sustainability. “As an industry, we intend to be all-in on sustainability, helping to lead the way toward a truly circular economy. Patrick will play an essential role on that journey,” said Tony Radoszewski, President and CEO of PLASTICS. “Patrick’s stellar performance as Senior Director for Materials and Sustainability, which included important work with our Recycling and other Material Supplier committees, made him the obvious choice to lead our sustainability efforts.” Krieger’s accomplishments to date include significant roles in guiding New End Market Opportunities (NEMO) projects for PLASTICS, as well as contributing to the growth of Operation Clean Sweep, a program in which companies dedicate themselves to measures aimed at preventing the release of resin into the marine environment. He is also responsible for the creation of Bioplastics Week, a successful online event geared toward educating both industry and consumer audiences about biobased plastic materials. Bioplastics Week gave rise to Plastics Recycling Week in 2021, another popular event that PLASTICS intends to grow this year. “I’m looking forward to the opportunity of working with our members to promote and improve the sustainability of the plastics industry,” said Krieger. “Improving recycling and recycling infrastructure, renewable feedstocks, or addressing the problem of marine debris – we are just getting started.” Krieger also organizes PLASTICS’ Re|Focus Recycling and Sustainability Summit, a multi-day conference during which industry professionals hear from expert speakers and their peers on solutions that will improve their sustainability efforts. A key feature of the Summit is the annual Sustainability Innovation Award competition, in which companies from both inside and outside the organization can showcase their efforts to contribute in the areas of recycling and sustainability. Beginning his career at PLASTICS in 2015 as Assistant Director of Regulatory and Technical Affairs, Krieger became Director of Regulatory and Technical Affairs in 2018, and then Senior Director for Materials and Sustainability in 2020. Before joining PLASTICS, Krieger served as Regulatory Affairs Manager for the Animal Health Institute. He is a 2007 graduate of Texas A&M University with a Bachelor of Science degree in Agricultural Leadership and Development.
Hyster Partners with RICO on expanded line of Explosion Proof Lift Trucks
Hyster Company announces an expansion of the certified Explosion Proof (EX) lift truck line, in which traditional Hyster lift trucks are converted by RICO Manufacturing, Inc., a provider in manufacturing certified EX solutions. EX-rated lift trucks have specific protection measures that allow them to operate in hazardous locations with potentially explosive or flammable vapors, liquids, dust, or fibers. The expanded lineup includes the introduction of four electric sit-down counterbalanced lift trucks in the 3,000-to-10,000-pound capacity range and two electric walkie pallet trucks in the 6,000-to-8,000-pound capacity range. These additional trucks provide more options for material handling operations where lift trucks may be exposed to explosive gases and combustible dust particles, common in industries such as paint, coatings, adhesives, aerospace, automotive, oil, paper, gas, and plastic. “This collaboration meets the growing demand for quality, certified EX-rated lift trucks, leveraging the strength of RICO, our approved supplier for these types of solutions in the Americas and our comprehensive Hyster dealer network,” says Martin Boyd, Vice President of Product Planning and Solutions, Hyster Company. “Our proven Hyster electric lift trucks are a strong foundation for specialized conversion by RICO, delivering performance and reliability as part of an expanded portfolio of solutions to address a wide range of industrial applications and customer needs.” The additional models build upon the success of the existing relationship between Hyster and RICO and the line of large-capacity, electric and internal combustion counterbalanced trucks introduced in 2019. The trucks are exclusively available through authorized Hyster® dealers. A majority of parts on the converted trucks, branded as RICO, are common with non-EX rated Hyster products, enabling the comprehensive Hyster® dealer network to service and support the EX trucks just as they would other Hyster equipment. Convenient access to serviceable components also helps reduce service times when maintenance is required. The trucks use an enclosed UL E battery, tested by the global safety certification company, helping to reduce lead times and cost by eliminating the need for special charging equipment. The RICO EX forklift series has been certified by Factory Mutual, a Nationally Recognized Testing Laboratory, as defined and approved by OSHA, to operate in Class 1, Divisions 1 & 2, Group D and Class 2, Divisions 1 & 2, Group G hazardous rated environments. RICO performs more than 98% of work in-house and has more than three decades of experience in manufacturing EX solutions for the North American market.
A Transatlantic Conversation: Economists discuss Post-Pandemic Global Trade
As global trade slowed in 2020, the US plastics industry experienced its first trade deficit after many years of a trade surplus. Year-to-date data ending in September shows a $1.4 billion US plastics industry trade deficit. It is likely that the US will have another year of a trade deficit in plastics, albeit less than last year. Now that 2021 is ending, what’s the trade outlook for 2022? I reached out to a trade expert I met during my days at the International Monetary Fund (IMF). Ingo Borchert, Ph.D. was an Economist at the World Bank in 2008-2011. He co-created the global “Services Trade Policy Database,” which is jointly published by the World Bank and the World Trade Organization (WTO), as well as the “International Trade and Production Database.” Given his role as Deputy Director of the UK Trade Policy Observatory at the University of Sussex, I was keen on getting Ingo’s insights on UK trade considering their position as a major plastics trade partner of the US. However, our interesting conversation took us beyond US-UK trade, covering the many facets of global trade. A Transatlantic Conversation on Post-Pandemic Global Trade Pineda: For the plastics industry, the world is our market. What’s your post-pandemic trade outlook? What can you suggest to policymakers to keep trade going, as countries emerge from the pandemic? Borchert: I would very much hope that we are about to emerge at the other end of the tunnel. Yet currently, the UK looks set to be heading straight into the fourth wave, much like many other European economies. Thus, it could be a little longer until we see a broad-based recovery taking hold. But policymakers can make a difference. The protectionist bickering in the past certainly wasn’t helpful, neither the trade war with China nor the controversy over the distribution of vaccines and exports of PPE equipment. But I see signs of the dialogue coming back on track; for instance, the Trade and Technology Council (TTC), as a transatlantic forum to coordinate trade policy between the US and the EU, is an encouraging step. In the longer term, I would hope that policymakers see—indeed, rediscover—the benefits of international integration. That is a message that needs to be heard in the UK more right now than anywhere else. Pineda: There is a consensus that trade volume will increase this year. The IMF now expects trade in goods and services to increase 9.7% this year and 6.7% next year. The latest forecast by the WTO calls for a 10.8% increase in merchandise trade from 2020, followed by a 4.7% increase in 2022. Is it possible that trade next year could grow above forecast—considering the uneven reopening of economies and that other countries are yet to re-engage in trade at pre-pandemic levels? What could cause trade to grow faster next year? Borchert: I suspect that some of these seemingly high-growth forecasts next year are base effects, meaning that they reflect the statistical phenomenon that any quantity that has taken a big hit will exhibit high growth rates when it rebounds, simply because the base has shrunk so much in the reference period. But of course, I would also hope for some genuine growth. The pandemic will probably lead to a long-lasting change in the composition of trade; for instance, more towards services trade, at least relatively speaking. Digital trade and merchandise goods that are amenable to e-commerce will certainly grow and grow faster, than other categories such as Travel or Transport, which are going to reel from the pandemic shock for some more time. Business travel may perhaps never go back to pre-COVID levels. But the recovery of value chains and stronger consumer demand once the pandemic is overcome should generally contribute to trade growth. What worries me a little bit is that inflation expectations are significantly up (5% in the US and 3% in the UK over one year). Higher prices are good for some businesses but if that trend continued it could curtail demand, especially since employment levels in many economies are still substantially below pre-pandemic projections, and it could spell an end to the very accommodating monetary policy that has almost become the new normal. Pineda: I do share your concerns. It was not expected that inflation would increase to these levels in a short amount of time. The demand and supply adjustments of economies coming out of the pandemic were not expected to be as uneven as what we’ve been experiencing. It appears that UK inflation has been running less than the US. This brings me to my next question. The UK is a major trade partner of the US in plastics and plastics products. It was expected that Brexit would result in trade diversion. Is it too early to assess the impact of Brexit on the UK’s trade with the EU and the US? Borchert: No, it is not too early to look at some figures if we are prepared to take the latest monthly trade figures with a grain of salt; moreover, mind that it is very hard to disentangle Brexit trade effects from the pandemic shock. Having said that, the numbers suggest that UK trade took a substantial hit after the Brexit transition period, which had ended on 31 Dec 2020. In one of the first studies on 2021 Brexit effects, which we published a few days ago, we find that over the period January-July 2021, UK exports to the EU fell by 14% and UK imports fell by a whopping 24% (or £32.5 billion), relative to non-EU partners. In January 2021, UK exports of plastics and rubber products to the EU tanked by 44.3%, although these exports have since recovered somewhat and appear to be back to average 2017-20 levels. At the same time, UK imports of plastics and rubber from the EU show a persistent negative impact of about -25% across all months. It is not implausible to think, as you suggested, that some of these imports may now be sourced from the US instead. Pineda: Any thoughts on how the UK’s
PLASTICS Report: Plastics machinery shipments grew in third quarter
The Plastics Industry Association (PLASTICS) just announced that shipments of primary plastics machinery (injection molding and extrusion) in North America increased in the third quarter according to the statistics compiled and reported by PLASTICS’ Committee on Equipment Statistics (CES). The preliminary estimate of shipment value from reporting companies totaled $333.8 million in the third quarter. It increased 4.0% from the previous quarter and 8.8% from a year earlier. The value of shipments of twin-screw extruders rose significantly by 44.4% in the third quarter and was 61.2% above the third quarter last year. In the third quarter, shipments of single-screw extruders rose by 7.2% from the previous quarter and 15.9% from the third quarter last year. Injection molding shipments edged up 1.6% from the second quarter and 5.7% from a year earlier. “Plastics equipment shipments picked up in the third quarter as the economy continue to emerge from the pandemic. Moreover, the increase in shipments was consistent with higher plastics production, which in the third quarter rose 4.2% or 5.9% from a year earlier. The upward-sloping demand for plastics equipment has not changed,” according to Perc Pineda, Ph.D. the Chief Economist of PLASTICS. The CES also conducts a quarterly survey of plastics machinery suppliers that asks about present market conditions and expectations for the future. In the third quarter survey, 75.5% of respondents expect market conditions to either improve or hold steady in the coming quarter – lower than the 92.7% of respondents who expressed the same view in the second quarter’s survey. As for the next 12 months, 75.0% expect market conditions to be steady-to-better. This is lower than the 78.7% of respondents in the previous quarter’s survey who were expecting growth in the next 12 months. “While the survey results show that growth expectations have moderated it also reveals that plastics machinery suppliers remain optimistic about market conditions four quarters ahead,” said Pineda. Plastics machinery exports increased by 6.1% to $390.2 million from the second quarter. Mexico and Canada remained the top export markets of plastics machinery from the U.S. The combined exports to USMCA partners in the third quarter totaled $172.6 million, which was 44.2% of total plastics machinery exports. Imports fell by 3.0% to $848.4 million resulting in a $458.3 million trade deficit. The U.S. plastics machinery trade deficit decreased by 9.6% in the third quarter. U.S. trade data in the third quarter are in sync with the improving global trade outlook. The World Trade Organization now expects a 10.8% increase in global merchandise trade this year—an upward revision from its 8.4% projection in March. “Data we’re seeing at PLASTICS confirm our prior projections that the outlook for plastics machinery in the second half of 2021 is positive albeit shipments will continue to fluctuate. The likelihood that supply-chain issues will continue to be a headwind in 2022 remains high. The globe is still emerging from the pandemic,” said Pineda.
Platinum Tooling president celebrates Four Generations and 100 Years in metal cutting
In a world where machine shops are struggling to stay open and maintain their business and in a day when “going into dad’s business” is not what it once was, Platinum Tooling is an exception to the rule. Located in Prospect Heights, Illinois, the company is set to reach an important milestone. In 2022, company president Preben Hansen and his family will celebrate 100 years working in metal cutting and four generations of Hansen men in the industry. How cool is that? The story began with Preben’s grandfather, Louis Eckart Hansen, who learned his trade in Copenhagen, Denmark in the early 1900s. Louis worked as a machinist in the Danish Navy’s repair facility. Preben’s father, Svend Eckart Hansen, honed his skills under the guidance of Louis. In 1958, Svend emigrated with his family, including young Preben, to the U.S. Despite not knowing English, he found employment within days of arriving in Chicago, because of his skill as a toolmaker. Svend began his career as a machinist and ended it in the 1990s as a master toolmaker at Ramcel Precision Stamping and Manufacturing LLC in Northbrook, Illinois. With manufacturing and tooling in his DNA, Preben worked in the machine shop of the former Fulton Machine Company in downtown Chicago, while attending the University of Illinois/ Chicago and pursuing a degree in engineering. Following college, he worked in the shop at Oakley Industries building custom machinery. After several years in the shop, Preben moved to the front office and into an inside sales position. Later, at Jemco Tool & Die, he learned programming and set-up on their CNC lathes and machining centers which were his introduction to machine tools and their accessories. His next job was at HPI, now known as Pioneer Heartech Precision Inc., a distributor of tool holders and related products, in Elk Grove Village, Illinois. Preben started as an Outside Sales representative of tool holders and rotary tables, then became the company’s Sales Manager. This was followed by work at Lyndex-Nikken, another machine tool accessory supplier in Mundelein, Illinois. Here, Preben was introduced to live tools and once again worked as Sales Manager. In 2010, Preben started a joint venture with heimatec GmbH, becoming the President of Heimatec, Inc., a company specializing in live tools, angle heads, and multi-spindle drill heads. In 2018, Heimatec, Inc. was purchased by Platinum Tooling Technologies, Inc. with headquarters located in Prospect Heights, Illinois. Preben Hansen is the COO and President at Platinum Tooling. In total, Preben has over 30 years of experience in the machine tool accessory market and over 40 years in the manufacturing industry. Given his credentials, it’s no surprise that Preben has established himself as a leading authority on these topics in the North American machine tool accessory market. He often hosts knowledge bars at trade shows to SRO crowds. In keeping with this family tradition, Preben’s son, Luke Hansen, joined his dad’s company in 2018 as a Technical Sales Specialist for several of the product lines sold by Platinum Tooling, including Tecnicrafts collets and guide bushings for Swiss machines. After graduating from high school, Luke joined the army in search of his calling and received great training there. Upon his discharge, he decided to put into practice the motivational and goal orientation skills he had learned in the military. In his current position at Platinum Tooling, Luke continues to expand his knowledge of the machine tool accessory market as well as build valuable relationships with the North American sales and distribution network of the company. Reflecting on 100 years as a family in the manufacturing industry, Preben Hansen says, “The machine tool industry has been and continues to be an extremely vital part of our country’s continued success. My son Luke and I are proud to be 3rd and 4th generation professionals involved in this exciting industry.” Platinum Tooling Technologies, Inc. in Prospect Heights, IL, serves its growing North American customer base with an extensive inventory of machine tool accessories. Its experienced staff is dedicated to providing the most innovative tooling and technology. Platinum Tooling Technologies, Inc. serves the auto, aero, medical, woodworking, composites, and other industries, as well as an ever-increasing number of machine tool OEMs worldwide, through its network of manufacturers’ representatives. Platinum Tooling is the importer of Heimatec, Henninger, Tecnicrafts, and AMF Tooling for North America.
Global Shop Solutions names John Davis Chief Technology Officer
Global Shop Solutions, a developer of ERP software for manufacturers around the world, has named John Davis as Chief Technology Officer (CTO). Davis joined Global Shop Solutions in 2004, and over the past 17 years has served the company in many different capacities including analyst, programmer, and management. Most recently he led the R&D Infrastructure Team, and his excellent programming, networking, and all-around technical knowledge have played a critical role in shaping the company’s ERP software product. “John has been instrumental in leading Global Shop Solutions technical strategy so our customers can take advantage of the benefits IoT brings to the manufacturing industry,” says Erika Klein, VP of R&D. “As CTO he will define the standards for the technical excellence we hold ourselves to.” An experienced systems analyst in the computer software industry, Davis combines strong Visual Basic, Object-Oriented Design, SQL, Perl, and C++ skills with a background in Computer Resource and Instructional Planning. He received his degree in Interdisciplinary Studies with an emphasis in Computer Science, Business Information Systems, and Instructional Technology from Utah State University. “A great leader and coach for our developers, John will be responsible for raising the skill set of all our developers by mentoring and challenging them,” adds Klein. “He will determine which technologies drive our product and develop our feature roadmap for the years to come.”
Thomson Industries celebrates its 50th anniversary
Thomson Industries, Inc., a manufacturer of linear motion control solutions, is celebrating the 50th anniversary of its legacy Ball Screws & Actuators Co. (BSA) business at its Fremont, California facility. The organization hosted a grand celebration to mark the occasion, highlighting its challenges and achievements, and reaffirming future goals. “The past 50 years have been an enjoyable and rewarding journey,” said Thomson President Scott Benigni. “We attribute this success to our hardworking and passionate employees, who work together toward the company’s objectives, and to our valued customers, whose faith in us has inspired our continued commitment to doing more and better things for them. We look forward to continued collaboration for the next 50 years and beyond.” The BSA business originated in 1971 when founder Scott Davis set out to machine ball screws for customers on the west coast of the United States. Initially, he sourced components from Thomson and other manufacturers but eventually developed his own components and patented his red Supernut® and ball screw product lines. These were well received by the semiconductor and medical product industries and, through various acquisitions and mergers, are now part of the Thomson catalog. The Fremont facility now produces Thomson lead screws and stepper motor linear actuators. The BSA acquisition was one of a series of acquisitions and mergers through which Thomson, now, as an operating company within Altra Industrial Motion, has evolved into a global provider in linear motion technology.
The Plastic Tax would hurt the economy and the environment
There’s a lot buried in the multitrillion-dollar social spending package currently moving through Congress. One provision under consideration that has largely flown under the radar, is a massive tax that would increase the cost of everyday household goods by over 25% and threaten tens of thousands of manufacturing jobs across America. In the scramble to find “revenue raisers,” the REDUCE Act – introduced earlier this year by Senator Sheldon Whitehouse (D-RI) – is now under serious consideration for inclusion in the “fast-track” reconciliation package. It would impose a massive 20 cent per pound tax on virgin plastic resin. Let me rename the “REDUCE Act” to the “Plastic Tax.” And what, exactly, is the Plastic Tax? On its face, it incentivizes the use of recycled plastics, which is laudable and a goal the plastics industry wholeheartedly supports. For decades, the plastics industry has invested and continues to invest billions of dollars into new and varied recycling technologies and programs at home and abroad. Our industry is constantly innovating to increase the viability of recycling plastics and using recycled plastics in more and more products. This is quite apparent by the expressed goals of the leading consumer brands to incorporate a significant amount of recycled plastic into their products. Unfortunately, the Plastic Tax is by its nature regressive and would be a gut punch to working-class families across the country trying to make ends meet. American households have seen their grocery bills skyrocket in recent months due to record levels of inflation not experienced in decades. The addition of the Plastic Tax would add insult to injury for families just trying to get by because a significant amount of the basic products they purchase at the grocery store would be impacted by this punitive tax. What are some of the items that ultimately would be hit by the Plastic Tax? Everything from personal care products like shampoo and conditioner bottles, deodorant containers, contact lens solution bottles, and many other cosmetic products. There are also condiments including ketchup and mustard, salad dressing, spices, snacks, packaged meats and produce. That’s just to name a few. It wasn’t until after the tax proposal had been introduced that representatives of the plastics industry were even invited to discuss the ramifications of the Plastic Tax. Despite some great bi-partisan successes on our issues in the last Congress, we must question why our industry is now being singled out through punitive legislation. Solid waste and recycling is an issue for all industries. The fact remains, a recycling system is only as strong as its inputs and capacity to process those inputs. One of the biggest problems with the Plastic Tax is that there simply isn’t enough supply of recycled plastic available to meet even current demand, let alone once the tax kicks in. This is because there is not sufficient recycling infrastructure. That would make the Plastic Tax simply unavoidable and felt by tens of thousands of workers in the plastic supply chain down to consumers of common everyday products. Despite the costs, could the Plastic Tax at least achieve environmental goals? No. It’s highly likely consumers will be forced to use alternative materials due to increased plastic costs. Before passing a proposal like this, I strongly urge the consideration of the unintended environmental consequences. Replacing plastic with paper, glass, and metal would deplete more resources and emit more carbon emissions. For example, a British study found that replacing all plastic water bottles used globally with glass would increase emissions equivalent to adding 22 coal-fired power plants. And that is just one product. Additionally, a Danish study found an organic cotton tote bag needs to be used 20,000 times to offset its overall impact on production. That equates to daily use for 54 years for a single bag. The Plastic Tax has an expansive economic and environmental scope that would affect every American in both the short and long term. At the very least it deserves an open discussion involving lawmakers, environmental groups, and industry stakeholders. Unfortunately, that has not occurred. There hasn’t been a single hearing. There hasn’t been a single witness called. There has been no oversight by Members of Congress whose constituents could be devastated by the size and scope of this proposal. The massive Plastic Tax is clearly not ready for prime time. About the Author: Tony Radoszewski is president and CEO of the Plastics Industry Association (PLASTICS) and has over 40 years of experience within the plastics industry.
PLASTICS releases statement after passing of Plastics Academy president Jay Gardiner
The Plastics Industry Association (PLASTICS) released the following statement from president and CEO Tony Radoszewski in reaction to the passing of Jay Gardiner. “On behalf of the entire plastics industry, I express my deepest sympathies to the family of Jay Gardiner. Jay was a legend, both in the business and in his community. His foundational contributions to the growth of the plastics industry in the United States rightfully earned him a place in the Plastics Hall of Fame, an organization he served with characteristic dedication in recent years. Beyond his life in plastics, Jay was also a pillar of his community, where he served in the local fire department for over three decades and taught at a local community college. Jay will be sorely missed.”
Global Plastics Ranking™: China, the U.S., and Germany Lead
The Plastics Industry Association (PLASTICS) recently issued its 2021 Global Trend Report. This PLASTICS’ flagship publication takes a deep dive into the U.S. plastics trade with the rest of the world during the previous year and the first six months of the current year. It also provides a snapshot of the international plastics and rubber trade. Additionally, it includes a plastics trade forecast. Moreover, starting in 2018, the report began including PLASTICS’ Global Plastics Ranking™—a ranking of the top-100 countries in the global plastics trade as determined by trade volume. It is also a measure of plastics intensity in each nation’s economy. Countries’ exports and imports of plastics resin, products, machinery, and molds are used as proxies of their production and consumption of plastics. In 2020, China ranked first followed by the U.S. and Germany. These countries have retained the top three positions as the world’s leaders in global plastics since the Global Plastics Ranking™ began. PLASTICS estimates China’s 2020 plastics trade volume at $180.2 billion. The plastics trade volume of the U.S. and Germany are estimated at $129.6 and $110.9 billion, respectively. The U.S., however, ranked third after Germany in 2018. But in the last two years, it has overtaken Germany. Considering that plastics is a mature industry, its growth will track economic output growth measured in gross domestic product or GDP. For this reason, it is not unusual to see the world’s strongest economies as key players in the global plastics trade. As China’s economy expanded so did its industrial sector, which includes plastics. China’s GDP growth averaged 8.7% from 2001 to 2020. Over that period, the global share of China’s exports of plastics and products thereof—as broadly classified under the Harmonized Tariff Schedule (HTS) 39—has grown significantly from 4.0% in 2001 to 16% in 2020. With a growing middle class, it is expected that consumption would be a higher share of China’s GDP in the coming years. This means higher growth for production and imports of plastics. China’s share of world imports of plastics has increased from 8% in 2001 to 11% in 2020. While the U.S. economic growth between 2001 to 2020 averaged 1.7%, it remains the world’s largest consumer of goods manufactured from other countries. 70% of U.S. GDP is consumption. The U.S. share of world plastics imports (HTS 39) has remained stable at around 10% from 2001 to 2020. Its export share of plastics (HTS 39) decreased from 14% to 10% over the same period. As a $19.0 trillion-plus economy, it is expected that the U.S. will remain a key player in the global plastics industry. Germany’s role in the global plastics industry is anchored on innovations in plastics machinery and engineered resins. Its manufacturing sector is replete with opportunities for new products and new applications for plastics. For this reason, alongside a growing economy, Germany’s role in the global plastics trade will remain significant. PLASTICS estimates Germany’s 2020 plastics trade volume at $110.9 billion. Like the U.S., Germany’s share of global plastics exports decreased from 13% in 2001 to 11% in 2020. Its share of global plastics imports has averaged 7.3% between 2001 and 2020 – with a high of 8.0% in 2008 and a low of 6.9% in 2004. Compared to the U.S., the percentage of consumption in Germany’s GDP is low at 49.5% in Q2 2021 and 50.9% for a Q2 2020. In the global plastics trade, trade agreements matter for the U.S. Its largest plastics trade partners are Mexico and Canada. All three economies have benefited from U.S.-Mexico-Canada trade agreements, beginning in 1992 with the North American Free Trade Agreement (NAFTA) and now with the United States-Mexico-Canada Agreement (USMCA). Last year, Mexico and Canada were up a notch from 2019 in the Global Plastics Ranking™. Both countries made it in the top ten with Mexico in the 9th and Canada in the 10th spot. We estimate the plastics trade volume in Mexico and Canada at $33.5 and $30.9 billion, respectively. The economies of USMCA partners are projected to improve this year and the next. Considering that the manufacturing value chains of these countries are linked, it can be expected that the plastics trade among the three free trade partners will rise. There are up-and-coming global players in Global Plastics Ranking™. One of which is Vietnam. In 2020, Vietnam was ranked 16th—up from 20th in 2019. Vietnam’s plastics trade volume rose to $22.4 billion as exports strengthened due to its labor cost advantage over other countries. India dropped to 19th from 16th in 2019. And Turkey completes the top-20 countries replacing Saudi Arabia. As discussed in the 2021 Global Trends Report, the key players in the global plastics trade will continue to face challenges on different fronts. But it is obvious from the rise of other countries into the global plastics ranking that global plastics demand has been and is expected to remain healthy considering its cost-advantages over other materials and many applications across manufacturing and service industries. For the plastics industry, the world is our market. The Global Plastics Ranking™ was trademarked by Perc Pineda, Ph.D. for the Plastics Industry Association. The 2021 Global Trends Report can be accessed by PLASTICS members and is available for purchase by nonmembers here.
Nucor affiliates announce two acquisitions
Nucor Corporation has announced two acquisitions today on behalf of The David J. Joseph Company (DJJ). The addition of these new recycling locations, representing a 10% growth in capacity, is consistent with Nucor’s growth strategy and demonstrates our commitment to expanding the regional recycling platforms supporting our steel mills. On September 30, Advantage Metals Recycling (AMR) completed the purchase of Grossman Iron and Steel located in St. Louis, Missouri. This acquisition brings AMR’s total number of recycling facilities to twelve. “We are pleased to welcome the Grossman teammates to the AMR/Nucor family. They are well-positioned to support our growing steelmaking capacity along with the Mississippi and Ohio river system,” said Mark Schaefer, AMR Vice President and General Manager. Trademark Metals Recycling LLC (TMR) has agreed to purchase the assets of Garden Street Iron & Metal Inc. located in Fort Myers, Florida. This transaction will close on October 4, subject to normal closing conditions. This acquisition brings TMR’s total number of recycling facilities to twenty-six. “The Garden Street teammates are a welcome addition to the TMR/Nucor team and will seamlessly add to our strong presence in the Florida market,” said Brian Phillippi, TMR General Manager.
PLASTICS Report: Plastics machinery shipments slowed in the second quarter
The Plastics Industry Association (PLASTICS) just announced shipments of primary plastics machinery (injection molding and extrusion) in North America decreased for the second consecutive quarter according to the statistics compiled and reported by PLASTICS’ Committee on Equipment Statistics (CES). The preliminary estimate of shipment value from reporting companies totaled $320.9 million in Second Quarter of 2021. It decreased by 4.2% following the 11.1% decrease in First Quarter 2021. Compared to Second Quarter 2020, however, plastics machinery shipments rose by 21.2%. The value of shipments of single-screw extruders increased significantly by 33.1% from the First Quarter of 2021, but twin-screw extruders and injection molding shipments fell by 24.9% and 4.9%, respectively. Compared to Second Quarter 2020, shipments of injection molding, single- and twin-screw extruders were 19.5%, 37.8%. and 32.3% higher, respectively. “While new orders of plastics equipment have been increasing, ongoing supply chain issues–-shortage of parts and components––are causing longer order-to-delivery timelines. This explains the decrease in shipments in the second quarter. For the third consecutive quarter, plastics equipment shipments were higher than a year earlier. This means that the underlying trend in plastics equipment demand remains upward sloping – still in sync with the robust economic recovery,” said Perc Pineda, Ph.D., Chief Economist of PLASTICS. Market Sentiment PLASTIC’s CES also conducts a quarterly survey of plastics machinery suppliers that asks about present market conditions and expectations for the future. In the Second Quarter 2021 survey, 92.7% of respondents expect market conditions to either improve or hold steady in the coming quarter – marginally lower than the 93.5% of respondents who expressed the same view in First Quarter 2021’s survey. As for the next 12 months, 78.7% expect market conditions to be steady-to-better. This is lower than the 93.0% of respondents in the previous quarter’s survey who were expecting growth in the next 12 months. Trade Outlook Second Quarter 2021 plastics machinery total exports decreased by 6.9% to $367.6 million from First Quarter 2021. Mexico and Canada remained the top export markets of plastics machinery from the U.S. The combined exports to USMCA partners in Second Quarter 2021 totaled $177.2 million, which was 48.2% of total exports of plastics machinery. Imports rose by 3.5% to $874.0 million resulting in a $506.8 million trade deficit. The U.S. plastics machinery trade deficit increased by 12.6% in Second Quarter of 2021. The volume of merchandise trade is expected to increase this year as global economic conditions improve. The World Trade Organization expects to see an 8.4% increase in global merchandise trade this year. “Until the supply chain issues are resolved, and production lead times return to normal, expect to see fluctuations in quarterly shipments of plastics machinery. Nevertheless, the outlook for plastics machinery in the second half of the year is positive,” said Pineda.
Miller Fabrication Solutions named to FAB 40 for the Fourth Consecutive Year
The annual list recognizes the nation’s most successful metal fabricating operations Miller Fabrication Solutions, a strategic metal fabrication partner for Original Equipment Manufacturers (OEMs) across construction and forestry, transportation, engine and turbine equipment, and other heavy industries, has been named to The FABRICATOR® magazine’s 2021 FAB 40 list for the fourth year in a row. The annual FABRICATOR list identifies the top 40 most successful U.S.-based metal fabricating operations, as determined by the previous year’s revenue and other reported company information. Companies that earn most of their revenue from contract and custom manufacturing involving sheet metal and plate fabrication are eligible for inclusion on the list. “COVID-19 created challenges for fabricators nationwide,” said Miller’s president, Eric D. Miller. “We used the pandemic as an opportunity to retain our workforce majority, make capital investments, load level product, onboard new OEM projects and concentrate on our strategic initiatives. Inclusion for the fourth consecutive year on The FABRICATOR®s’s annual list of the most successful OEM metal fabricating operations in the United States underscores the payoff that has come – and is anticipated to come – from those actions. We are honored to continue to be named to this prestigious list.” Miller Fabrication Solutions has three plant facilities in western Pennsylvania that provide a broad range of manufacturing and value-added solutions, including 2021 FAB 40 list, machining, coating, and finishing, assembly, inventory management and control, logistics optimization, value analysis/value engineering, on-time production scheduling and capacity management. Access the company’s gallery of completed and ongoing projects by visiting www.millerfabricationsolutions.com/gallery today.
Myers Industries acquires Trilogy Plastics
The acquisition further expands and strengthens Myers’ rotational molding platform Provides Myers’ customers access to a more complete portfolio of diverse products The transaction accelerates Horizon 1 of the Company’s long-term strategy Myers Industries, Inc. has announced that it has acquired the assets of Trilogy Plastics and financed the transaction with its revolving credit facility. Trilogy Plastics is a world-class custom rotational molder specializing in high quality, high tolerance parts and assemblies. The acquisition is the latest action taken as part of the “One Myers” long-term strategic plan, which is focused on transforming the Company into a high-growth, customer-centric innovator of value-added engineered plastic solutions. This acquisition accelerates Horizon 1 of the long-term strategy focused on value-added bolt-on acquisitions. “The addition of Trilogy to Myers’ rotational molding platform represents an important milestone in the continued execution of our ‘One Myers’ strategy that we believe will unlock additional growth and expansion opportunities for the Company. Trilogy has an outstanding record of providing its customers high quality, high tolerance products and superior service making it an excellent addition to the high-performance culture we are continually building at Myers,” said Mike McGaugh, president and CEO of Myers Industries. “This marks our second acquisition in the last nine months, and I am proud of our team for executing exceptionally well on the initial stage of our strategic vision. We look forward to integrating the Trilogy business into the Myers family, and continuing to grow organically and through additional acquisitions.” Founded in 1987, Trilogy Plastics manufactures custom products for the industrial, consumer, lawn and garden, heavy truck, medical and other markets. Trilogy has established itself as an internationally recognized U.S.-based rotational molder specializing in high appearance, tight tolerance parts, and assemblies. The combination of Trilogy with Myers’ Ameri-Kart and Elkhart businesses will create one of the largest rotational molding manufacturers in the United States and will provide Myers’ customers with access to a more complete portfolio of diverse products. “We decided to partner with Myers because of our shared strategic vision and corporate culture,” said Stephen Osborn, Chairman of Trilogy Plastics. “The combination will allow us to continue our steady growth, improve our ability to support our customers, and provide more opportunities to our team members.” Trilogy Plastics will operate as a part of the rotational molding platform within Myers’ Material Handling Segment. Headquartered in Alliance, Ohio, Trilogy has two U.S. manufacturing facilities and employs approximately 265 people. Trilogy’s annual revenues are approximately $35 million, and the acquisition is expected to be slightly accretive to earnings in 2021. Myers expects the transaction to generate cost synergies of approximately three percent of sales. These cost synergies will stem primarily from supply chain optimization. In addition, the Company expects to realize growth synergies due to the broader geographic footprint created by the combined rotational molding businesses.
Survey of Plastics Industry indicates broad optimism
Today, the Plastics Industry Association (PLASTICS), the only industry group with membership throughout the entire plastics supply chain, announced its Plastics Industry Annual Business Outlook. Results of the annual survey indicate a strong sense of optimism for the industry over the next 6-12 months. “While it’s essentially a snapshot in time, the result indicates a positive outlook for the plastics industry and for the entire domestic economy. Trade outlook with Mexico and Canada is also positive” said Perc Pineda, Ph.D., Chief Economist of PLASTICS.“As those in this industry are aware, the plastics supply chain is fairly complicated with many different segments. Our Plastics Industry Annual Business Outlook is helpful in capturing the sentiments of the entire industry to provide a complete picture.” The 2021 Plastics Industry Annual Business Outlook is based on a survey of plastics industry decision-makers representative of all segments of the plastics supply chain conducted in June of 2021. These segments include brand owners, equipment suppliers, material suppliers, mold makers, processors and converters, recyclers, and service providers. Key Takeaways Over 3/4 of respondents expect the U.S. economy to expand Nearly 90% expect an increase in business volume Nearly 3/4 expect workforce increases Nearly 2/3 anticipate an increase in capital expenditures
Nucor acquires Hannibal Industries for $370 million
Nucor Corporation announced today that it has entered into an agreement to purchase Hannibal Industries, Inc. for $370 million, which represents 6.9x EBITDA for the trailing twelve months ended March 2021. The company is a national provider of racking solutions to warehouses and serves the e-commerce, industrial, food storage, and retail segments. Pending approvals, Nucor will purchase 100 percent of Hannibal Industries’ outstanding shares from its Employee Stock Ownership Plan (ESOP). “Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel, and complements our current product capabilities, including beams, joists and deck, metal buildings, and insulated metal panels,” said Leon Topalian, president and Chief Executive Officer of Nucor Corporation. “This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes a new area for Nucor to pursue a market leadership position.” Hannibal Industries has manufacturing facilities in Los Angeles and Houston, as well as three distribution centers. It utilizes sheet and bar steel, as well as steel decking, wire deck, and fasteners to produce its racking solutions, providing potential supply chain efficiencies with other Nucor businesses. In addition to manufacturing racking solutions, Hannibal Industries works closely with customers during the construction and design phases of a warehouse build-out by offering turn-key services such as installation, procurement, and facility integration. “Acquiring Hannibal Industries further deepens our ability to serve warehouse and distribution customers when coupled with our pending purchase of Cornerstone Building Brands’ insulated metal panels business,” said Rex Query, Executive Vice President, Sheet and Tubular Products. “In addition, having been an employee-owned company, we believe Hannibal Industries will be a natural fit with Nucor’s teammate-centered company culture.”
Diversified Product Development hosts Grand Opening at new manufacturing facility
Diversified Product Development, marketer of the LineWise™, LiftWise™, RailWise™ and DesignWise™ brands, hosted a grand opening ceremony on June 22, 2021, at its new manufacturing facility in Waco, Texas. Approximately 100 people attended the event marking the company’s strategic move, which will help Diversified grow and better serve its customers. The new facility is 60,000 square feet, which is more than 10 percent larger than the company’s previous building. Diversified also invested in multiple equipment upgrades to increase its capabilities, such as doubling its jib crane capacity and adding a 10-ton bridge crane. Diversified currently employs 52 people, including engineers, designers, sales, and support staff. “Everyone is excited about our new state-of-the-art facility,” said Ray Fritel, president of Diversified. “Our company has grown steadily over the years, with plans to grow even more, and the new headquarters will help us better achieve our goals.” Diversified’s LineWise division designs, engineers and manufactures a full line of utility products, including line lifters, insulated work platforms, phase lifters, transmission temporary conductor supports, and more. LiftWise is the material handling division, offering a wide range of products for material handling in assembly, welding, and equipment servicing, as well as other various lifting solutions. DesignWise is a division of Diversified that offers a breadth of services to clients including exploring new markets and products; redesigning or modernizing existing products; improving ergonomics; increasing maintenance efficiency; and making products faster and more profitable. Finally, RailWise is the company’s newest brand, which encompasses a growing line of products for the hirail market.