Global Recession’s Impact on U.S. Plastics in the International Marketplace

Despite a weak fourth quarter, U.S. plastics exports showed robust growth in 2008. Although trade barriers remain to accessing a number of overseas markets, U.S. plastics remain competitive and highly desired in the international marketplace. However, domestic shipments in 2008 declined just under one percent, as the recession began to take its toll on plastics consumption in the United States. The latest international trade statistics for the plastics industry were made available in a new report released by SPI: The Plastics Industry Trade Association.

While exports during the fourth quarter of 2008 were down 23 percent from the prior quarter and down 12 percent from the same quarter in 2007, SPI's 2008 Global Business Trends report shows that overall exports increased by 6.7 percent for the year.

Other highlights contained in the report include: Plastics Exports Exceeded $51 billion: Breaking the $50 billion barrier for the first time, U.S. plastics exports accounted for approximately 4.4 percent of total U.S. exports in 2008. Imports meanwhile increased by a more modest 3.0 percent in 2008 to just under $39 billion.

Canada and Mexico remain the country’s largest plastics trading partners: slightly more than 42 percent of U.S. plastics exports are destined for neighboring countries, Canada and Mexico. China is the industry's third largest export market. However, the industry had its largest trade deficit with China: $5.2 billion in 2008 Domestic shipments declined by less than one percent: The estimated value of domestic shipments decreased by 0.8 percent in 2008, to $266.4 billion.

Broader domestic data, such as that normally contained in SPI’s Size and Impact of the Plastics Industry on the U.S. Economy report is not yet available for 2008. As is the case every five years, the release of the underlying source data for this report has been delayed as the Census Bureau focuses on the 2007 Economic Census. As a result, SPI will not be releasing an updated version of its Size and Impact of the Plastics Industry on the U.S. Economy report in 2009.

“Despite the significant decline in exports during the fourth quarter, the 2008 trade data show that the U.S. plastics industry was more competitive than ever,” said SPI Senior Director for International Trade and Trade Counsel Neil Pratt. "And while exports have remained significantly down in 2009, plastics exports through July have shown steady increases for six straight months, rebounding more than 30 percent from their January 2009 low."

SPI’s 2008 Global Business Trends report is free to SPI members, government agencies and academic institutions. It is available for purchase at the Plastics E-Store.

For more information, contact Barry Eisenberg, The Society of the Plastics Industry, Inc., 1667 K St., NW, Suite 1000, Washington, DC 20006, 202-974-5210, Fax: 202-296-7005, E-mail: beisenberg@plasticsindustry.org, Web: www.plasticsindustry.org.