PLASTICS: Machinery sales fell in Q2, but remain ahead of 2020

Shipments of injection molding machines and extruders declined for the second consecutive quarter, though remaining ahead of this time last year, according to numbers compiled by the Plastics Industry Association (PLASTICS). Meanwhile, industry insiders surveyed by PLASTICS are expressing confidence in current and future market conditions. 

According to preliminary estimates, the value of shipments from reporting companies totaled $320.9 million in the second quarter of this year. That’s a 4.3 percent decrease from the first quarter, when the industry also saw a quarter-to-quarter decline, of 11.1 percent.  

Shipments of twin-screw extruders and injection molding machines fell by 24.9 percent and 4.9 percent, respectively. 

But not all categories of machinery declined. The value of shipments of single-screw extruders increased by 33.1 percent from the first quarter. 

Overall, the total exports of plastics machinery decreased by 6.9 percent from the first quarter to the second quarter, to $367.6 million. The U.S. plastics machinery trade deficit increased by 12.6 percent in the second quarter.

“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,” said Perc Pineda, chief economist of PLASTICS. “For the third consecutive quarter, plastics equipment shipments were higher from a year earlier. This means that the underlying trend in plastics equipment demand remains upward sloping — still in sync with the robust economic recovery.” 

Compared with last year, shipments have been trending higher. The second-quarter numbers show a 21.1 percent increase over the same period last year. Compared to the second quarter of last year, shipments of injection molding machines and single- and twin-screw extruders increased by 19.5 percent, 37.8 percent and 32.3 percent, respectively. 

In PLASTICS’ latest quarterly survey, 92.7 percent of respondents said they expect market conditions to either improve or hold steady in the coming quarter; last quarter, 93.5 percent of respondents expressed the same view. More than three-quarters — 78.7 percent — expect market conditions to hold steady or improve in the next 12 months. This is lower than the 93 percent of respondents in last quarter’s survey who were expecting growth in the next 12 months.