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FOR IMMEDIATE RELEASE

SPI COMMITTEE ON EQUIPMENT STATISTICS RELEASES ANNUAL REPORT ON PLASTICS MACHINERY

Report Shows Dip in Machinery Market but Predicts Growth

WASHINGTON (May 17, 2004) - Much of the U.S. plastics equipment industry reported slight decreases in shipment dollars in 2003, down less than one percent from the prior year, according to a recently released report from The Society of the Plastics Industry, Inc. (SPI). Shipment dollar comparisons over the same time frame indicated a minor decrease of less than 1 percent, with manufacturers of plastics machinery and equipment (excluding components equipment) shipping a total of $1.183 billion of machinery product in 2003, scarcely less than the 2002 figure of $1.192 billion. A quarterly comparison of fourth quarter 2002 and the same time frame in 2003 shows a more notable 6-percent decrease in shipment dollars.

When broken down by industry sector, the data shows decreases in both units and shipment dollars for auxiliary, extrusion and injection molding equipment manufacturers, though none of those sectors saw losses of more than 7 percent in prior year comparisons.

On the other hand, the blow molding and plastics components sectors saw modest growth in both fourth quarter and yearly comparisons. Despite the downward trend indicated by the 2003 data, an industry forecast included in the report predicts moderate growth for the machinery sector in 2004.

The report is a product of the association's Committee on Equipment Statistics (CES), which collects monthly order and shipment data from manufacturers of plastic injection molding, extrusion, blow molding, auxiliary and component equipment manufacturers. The monthly data, compiled by a confidential third-party fiduciary, is aggregated and disseminated to participating companies, making the SPI program the only provider of timely and reliable plastics equipment statistics in the country.

The CES Full Year 2003 Report puts the data collected in context with the plastics industry in general. Detailed information includes new orders and shipments by quarter and growth rates for specific equipment sectors. The Report also includes a plastics equipment forecast and economic analysis provided by Bill Wood, Plastics Market Economist with Mountaintop Economics & Research, Inc., Colrain, MA.

Among information in the new publication:

• Shipments: CES participants - manufacturers or importers of plastics machinery and equipment in the United States (excluding components and extrusion equipment) - shipped a total of $1.18 billion of product in 2003. This represents a slight decrease of less than 1 percent from $1.19 billion in 2002.



• New Orders: The injection, blow molding, extrusion and auxiliary equipment industries saw a 3-percent decrease in new orders, reporting $1.22 billion in 2003, down from $1.26 billion the prior year. These same industry segments experienced a decrease in new orders of 4.7 percent when comparing fourth quarter reporting from 2002 and 2003.



• By segment: Injection molding reported a decrease of 7-percent in unit shipments, but saw virtually no change in shipment dollars from 2002. Extrusion shipments were also down, with a reported 6.2 percent decrease in units shipped and 4.1-percent in dollars in yearly comparisons. Auxiliary bookings saw an 4.1-percent decrease in shipment dollars, with a 7-percent drop in bookings dollars when comparing fourth quarter 2003 with fourth quarter of the prior year. Blow molding shipments showed the most promise in 2003, posting gains of 19.4 and 10.5 percent in units and shipment dollars, respectively. Plastics components also saw growth of 8.7-percent in units and 3.4-percent in shipment dollars.

Plastics Markets Analyst, Bill Wood, predicts 2003 will mark the end of a string of consecutive down years for the plastics machinery sector and forecasts moderate growth in 2004. Though the significance of the recovery expected in 2004 will still fall short of the peaks the industry hit just before the recent recession, Wood predicts even modest gains will set the stage for further expansion in 2005.

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 members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.4 million workers and provides nearly $310 billion in annual shipments. For more information, visit SPI on the Web at www.plasticsindustry.org.

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