Contact: Paula Weis
(202) 974-5282

FOR IMMEDIATE RELEASE

STUDY SHOWS PLASTICS INDUSTRY IS MAJOR ECONOMIC FORCE IN MASSACHUSETTS

WASHINGTON (June 12, 2003) - The plastics industry is a significant contributor to the Massachusetts economy, with the state ranking among the top 15 in the nation in terms of plastics shipments and employment, according to a new report from The Society of the Plastics Industry, Inc. (SPI).

The report, "The Definition, Size and Impact of the U.S. Plastics Industry," which includes raw material, processing, machinery and mold manufacturing in its definition of the plastics industry, shows that Massachusetts provided 41,779 plastics jobs in 2001, placing the state twelfth in the nation. Moreover, the report indicates that Massachusetts was the fifteenth largest state in the nation for plastics shipments, with more than $8 billion in 2001.

Overall, Massachusetts fared better than the plastics industry as whole, which saw a seven-percent drop in shipments and a 1.2-percent reduction in jobs between 2000 and 2001. In contrast, Massachusetts saw only a 3.4-percent decrease in shipments and a modest job growth rate of less than one percent in the same period.

In addition to analysis of the size and scope of the U.S. plastics industry, the report includes both state and county data on the number of companies, shipment volume, number of employees, payroll, value added and new capital expenditures for each plastics sector (by North American Industrial Classification System Code, or NAICS). Of the 14 sectors included in the report, unsupported non-packaging plastics film and sheet manufacturing (NAICS 326113) had the most sizable impact on the Massachusetts economy, with the state ranking second and third, respectively, in the U.S. in employment and shipments. Massachusetts also had a significant presence in the plastics working machinery and equipment, excluding patterns and molds, sector (NAICS 3332201), ranking third nationally in both employment and shipments in 2001.

According to the study, the plastics industry contributed 1.5 million jobs and $321 billion in annual shipments in 2001. The report, which was conducted for SPI by Probe Economics, Millwood, NY, also shows another 850,300 persons were employed by upstream industries that supplied the plastics industry, bringing the employment impact to nearly 2.4 million - about 2 percent of the U.S. workforce. While every state has a plastics industry presence, the top 10 states accounted for 59 percent of the total U.S. plastics industry jobs, the report said. The plastics processing sector alone remains the fourth-largest manufacturing industry in the United States.

The study, the only one of its kind highlighting the critical importance of the industry to the nation's economy, is part of the trade association's Plastics Data Source, which provides in-depth statistics on all facets of the plastics industry. Among other findings in the publication:

• Employment in the U.S. plastics manufacturing industry grew 2.2 percent per year between 1980 and 2001, while the total of plastics manufacturing and plastics wholesale trade grew slightly faster, at 2.3 percent per year.
• Comparative growth rates suggest that productivity in plastics manufacturing grew about 1.5 percent per year from 1980 to 2001, a similar productivity growth rate to that achieved by manufacturing as a whole.
• The late 1990s brought a significant downward trend in the plastics industry, mirroring what happened to the rest of manufacturing in the same time period as a result of various economic factors.
• Overall, plastics industry employment, real shipments and real value added grew faster than manufacturing as a whole during the last 25 years.

For more information on this data and other statistical studies available through SPI, link to www.plasticsdatasource.org.

Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's 1,300 members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.5 million workers and provides more than $320 billion in annual shipments. For more information, visit SPI on the Web at www.plasticsindustry.org. Join SPI in Chicago June 23-27, for NPE 2003, the World's Plastics Showcase. The triennial event, sponsored by SPI, features innovations and technological breakthroughs from more than 2,000 exhibitors serving all facets of the industry, including automotive, appliance, medical, packaging and more. For more information, link to the Web at www.npe.org.

Back to Top

More About SPI:   Vision and Mission . Membership . Business Units . Regional Offices . News and Publications . Calendar of Events . Terms and Conditions of Use