Growth resumes for industrial PE packaging films. (Outlook).* The most recent polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n film market study by Mastio & Company forecasts promising growth for industrial packaging in the second half of 2002. The U.S. economy is strengthening, economists believe the recession has ended, and many processors of industrial packaging film are seeing an upswing Upswing An upward turn in a security's price after a period of falling prices. . This is a far cry from the fall of 2001, when the industrial packaging film business stood still and sales stopped for weeks. The past year's economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. took its toll on many small industrial film processors, several of which closed or filed Chapter 11. The recession also encouraged the flight abroad of markets like textiles that use industrial packaging film. Consumer confidence in the economy is a major factor for industrial PE film packaging. Consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. is the key to growth because consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and are increasingly packaged in cross-laminated films, bubble packaging, heavy-duty sacks, rack and counter bags, multi-wall sacks, industrial liners liners, n the liquid material applied to teeth to protect them within a cavity preparation, to seal carious tissues, or to release beneficial chemicals such as fluoride. , stretch films, and shrink shrink Vox populi noun A psychiatrist films. Industrial PE packaging film consumes approximately 4.1 billion lb annually and represents about 24% of total PE film consumption. Industrial film processors predict that this major sector will exceed 6 billion lb by 2006, representing 8% annual growth. The largest industrial packaging-film products include stretch film, shrink film, and industrial liners. Stretch film represents approximately 34% of PE industrial packaging segment, and shrink film another 18%. Stretch and shrink films also have the greatest potential for growth. Stretch & shrink films Industrial stretch film continues to be one of the largest, most rapidly evolving PE film markets today. During 2001, stretch-film consumption slowed for the first time in nearly seven years. Even some large stretch-film producers saw a decrease in sales of as much as 5%. These same companies are forecasting growth for the third and fourth quarters of 2002 and stronger growth in 2003. Stretch film is forecasted to grow by an average of 10% through 2006. Shrink films and pallet shrink bags and shrouds are experiencing a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. , regaining market share lost to stretch films since the 1970s. The increased popularity of supercenters, wholesale clubs, and discount stores where customers purchase products in bulk has added to demand for shrink film. For example, case-overwrap shrink bags for bottled water are a fast-growing segment of the shrink-film business. Also, pallet shrink bags and shrouds offer greater moisture and barrier protection than stretch wrap and are in demand for covering heavier, non-uniform pallet loads such as heavy equipment, gasoline-powered engines, furniture, boats, and other large objects. Industrial liners are another promising area for film producers. Industrial liners represent 25% of industrial packaging films. Growth in this market is forecasted at 7% per year. LLDPE LLDPE Linear Low Density Polyethylene outpaces other PEs LLDPE is still the most-used resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing for industrial packaging films. LLDPE consumption in this market is predicted to grow over 8% per year and will be approximately 66% of total PE industrial packaging film by 2006. Stretch film is one stronghold for LLDPE. LDPE LDPE abbr. low-density polyethylene is forecasted to be 29% of total resin consumption for industrial packaging film. LDPE resin remains the principal material for shrink film due to its high clarity and ease of processing. LDPE is also the resin of choice for pallet shrink film because of its heat-shrink characteristics.
GROWTH IN INDUSTRIAL PACKAGING FILM 2001-2006
Annual Growth, %
Stretch Film 10
Shrink Film 9
Industrial Liners 7
Heavy-Duty Sacks 7
Multi-Wall Sacks 5
Pallet Shrink Film 5
Rack & Counter 3
Bubble Pkg. 3
Cross-Laminated Film 3
Note: Table made from bar graph
TOP FIVE PRODUCERS
RANK COMPANY
1 Tyco Plastics
(Tyco International Ltd.)
2 AEP Industries, Inc.
3 Polyethylene Packaging Div.,
Bemis Co., Inc.
4 Pliant Corp.
5 Sigma Stretch (Sigma Group)
Mastio & Company, based in St. Joseph, Mo., is a well-known consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in industrial-consumer opinion research and market trends in the plastics industry. For more information, call (816) 364-6200 or visit www.mastio.com/pt/outlook.html. |
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