A consensus is forming within the community of industry analysts and economists who follow current U.S. manufacturing trends. This unofficial accord suggests that the United States is poised to experience a manufacturing renaissance brought about by a sharp decline in the price of plastic.
The cost of domestically produced plastics has fallen dramatically in recent years because of a boom in the production of natural gas. Many plastic products manufactured in the U.S. are made from ethylene, which is derived from ethane, a material found in natural gas.
A Market Game Changer
An uptick in the volume of plastics manufacturing output in the U.S. is capable of generating as many as 3 million new jobs in the U.S. within the next seven years. If this scenario plays out as anticipated, plastics manufacturing alone could add 3 percent to the nation’s GDP.
Enthusiasm for a resurgence in domestic plastics manufacturing is fueling a boost in the demand for real estate on which to build new manufacturing plants.
The advent of 3D plastic printing technology has accelerated the rate of rapid prototyping development, the means of generating three-dimensional physical models of products and parts.
This is a significant factor that industry analysts regard as a “game changer” with respect to permitting manufacturers to bring products to market at a much faster rate.
Why Plastic In The U.S. Pays
For many decades, U.S. manufacturing jobs have been outsourced to other parts of the world such as Asia. This outflow of jobs was the result of a desire on the part of manufacturing firms to access cheap labor.
To some degree, this cost-of-wages gap has closed, but certain other factors associated with shipping and energy costs have greatly added to the mounting stack of evidence suggesting that it pays to make plastic goods in America again.
Today, American plastics manufacturing companies are able to output more and better goods for far less money. This is very good news for those interested in the future outlook for American jobs and domestic tax revenues.
A Bright Spot For American Job Creation
Economists agree that industrial expansion is a crucial element with respect to increasing the pace of growth within local economies. Regions of the U.S. which presently show the most momentum in the expansion of manufacturing output are also on the list of regions where employment numbers look the best.
Plastics manufacturing methodologies in the nation are already very well researched and proven to be profitable on any scale, large or small. If the costs associated with producing plastic products domestically are shown to make those products competitive with imported goods, then the plastics industry can be seen as a bright spot in connection to creating meaningful jobs here in America.
Starting Fast For Long Term Results
Petrochemical industrialists are excited over the coming of a new age in plastics manufacturing in the United States. They look forward to the prospect of obtaining valuable government licenses and incentives such as tax breaks for bringing jobs to hard-hit regions of the nation that are still suffering from high unemployment.
Plastics manufacturing operations can be started up very rapidly in areas where supporting transportation infrastructure and a regulatory framework conducive to the needs of the plastics industry already exist.
Article Sources:
http://www.bloomberg.com
http://www.reuters.com
http://www.fastcompany.com
Since the Industrial Revolution, we have been conditioned to believe that mass producing products is the cheapest, most efficient way of manufacturing goods. This concept has been applied to everything from sweaters to meat, and has undoubtedly become the standard in the United States. Some of the most popular products manufactured by this system are made of plastic. But now a new way to produce many plastic products was introduced using a 3D printer. For some, this is more feasible than buying manufactured plastic goods.
That picture of a medley of 3D printed items goes to show you just how much stuff is being printed these days. I thought I had seen it all until I saw a women’s high heel shoe printed in 3D. Yup, you can make a lot of cool things with a 3-D printer, but excited investors aren’t one of them. Stratasys, the company that owns 3-D consumer printer MakerBot, saw its stock plunge more than 30% after the company warned that fourth quarter earnings would be worse than expected late Monday. It also issued a poor forecast for the rest of 2015.
I am not familiar with the specifics regarding the legislature and policy which is responsible for the upswing in jobs from this industry. I do know that it is the Plastics Industry Trade Association, which represents the nation’s third largest manufacturing industry, supports President Obama’s efforts to create jobs and strengthen the middle class by expanding the economy and negotiating sensible trade agreements. Plastics continue to rank higher than the rest of the U.S. manufacturing sector’s key growth areas.