Hourly rates in two-year slump. (Hourly Rate Survey).

* A 1.5% average drop in machine-hour rates in the fourth quarter of 2002 was reported by 183 custom injection molders responding to our latest semiannual survey. This followed a 1.3% drop in the mid-year survey and was the fourth drop in a row over a period of two years. Fourteen percent of molders said their rates had dropped in the fourth quarter, while 6% said they had raised rates, and 80% left their rates unchanged. These percentages are about the same as those obtained at mid-year. The only area of the country where more molders raised rates than dropped them was the North Central region, where 11% charged more and 8.5% charged less.

Capacity usage flat

Meanwhile, molders reported that their average capacity utilization was unchanged from the mid-year level of 53%. However, more molders (40%) saw their capacity utilization drop than saw it rise (24%) at the end of 2002, while the reverse was true at mid-year.

The lowest utilization rates at the end of 2002 occurred in the Southeast region, which had enjoyed the highest levels for the preceding year. The highest utilization rates in the current survey were in the North Central states.

The general level of optimism about near-term business conditions also sagged a bit at the end of 2002. Only 50% of molders saw improving conditions ahead (down from 54% at midyear) while 19.5% saw worsening business conditions (up from 14%) and 30% saw no change in the near term. The level of optimism was highest in among Northeastern molders and lowest in the Southeast.

One final indicator of the slump in molding is the 9.3% decline in new mold orders reported by 110 mold shops nationwide. Though mold orders have declined over most of the last three years, this was the sharpest decline reported since the end of 2001.

CUSTOM INJECTION CAPACITY UTILIZATION


1st Qtr 2000  66
4th Qtr 2000  60
2nd Qtr 2001  58
4th Qtr 2001  52
2nd Qtr 2002  53
4th Qtr 2002  53

Note: Table made from bar graph

PROFIT & LABOR IN HOURLY RATES

Deduct these  amounts (a) from the figures in the larger table to arrive
at rates without profit, operator, or both.

Press Tonnage  Without Profit  Without Operator  Without Either

<100           12.0%           16.8%             30.7%
100-299         8.2%           12.4%             24.5%
300-499         7.1%           10.4%             20.6%
500-749         5.0%            8.5%             17.1%
750-999         5.9%           12.9%             20.9%
1000+           3.5%           11.9%             16.9%

(a)Cumulative national averages over many surveys.

CUSTOM INJECTION MOLDERS'MACHINE-HOUR RATES WITH OPERATOR, PROFIT MARGIN
INCLUDED (a) (183 PLANTS)

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                                    Dollars Per Hour
                                 (High/Average/Low) 4th
                                      Quarter 2002
Tonnage Range                      <50


Northeast                       $80.80
(ME, NH, VT, MA, CT             $36.40
RI, NY, NJ, PA)                 $14.07

Southeast                       $39.24
(DE, DC, FL, GA, MD             $30.02
NC, SC, VA, WV)                 $20.00

North Central                   $78.19
(IL, IN, MI, OH, WI, IA,        $31.13
KS, MN, MO, NE, ND, SD)          $6.70

South Central                   $45.00
(AL, KY, MS, TN, AR,            $28.56
LA, OK, TX)                      $6.22

West (CA, OR, WA,               $65.00
AK, HI, AZ, CO, ID, MT,         $40.49
NV, NM, UT, WY)                 $10.00

National Average (C)            $33.70

Average Change in Hourly Rates
In Fourth Quarter 2002:           -1.5%

                                 Dollars Per Hour (High/Average/Low)
                                          4th Quarter 2002
Tonnage Range                    50-99                     100-299


Northeast                       $95.20                      $80.00
(ME, NH, VT, MA, CT             $38.00                      $43.00
RI, NY, NJ, PA)                 $14.07                      $14.07

Southeast                       $50.00                      $65.94
(DE, DC, FL, GA, MD             $38.15                      $43.72
NC, SC, VA, WV)                 $20.77                      $30.00

North Central                   $78.58                     $113.90
(IL, IN, MI, OH, WI, IA,        $34.85                      $40.27
KS, MN, MO, NE, ND, SD)         $13.40                      $12.09

South Central                   $54.95                      $65.94
(AL, KY, MS, TN, AR,            $30.93                      $37.24
LA, OK, TX)                      $8.11                      $14.05

West (CA, OR, WA,               $75.00                      $90.00
AK, HI, AZ, CO, ID, MT,         $45.43                      $51.76
NV, NM, UT, WY)                 $26.38                      $30.77

National Average (C)            $37.40                      $42.97

Average Change in Hourly Rates
In Fourth Quarter 2002:

                                 Dollars Per Hour (High/Average/Low) 4th
                                              Quarter 2002
Tonnage Range                   300-499   500-749   750-999   1000-1499


Northeast                       $100.00    $86.55    $93.42
(ME, NH, VT, MA, CT              $46.41    $55.25    $53.72
RI, NY, NJ, PA)                  $11.54    $14.07    $14.07

Southeast                        $62.00    $65.00    $85.00
(DE, DC, FL, GA, MD              $50.54    $60.52    $80.00
NC, SC, VA, WV)                  $35.00    $45.00    $75.00

North Central                   $214.40   $268.00   $247.28     $173.53
(IL, IN, MI, OH, WI, IA,         $53.01    $67.98    $84.70      $98.55
KS, MN, MO, NE, ND, SD)          $13.85    $13.85    $13.85      $13.85

South Central                    $78.00    $87.92   $139.02     $153.31
(AL, KY, MS, TN, AR,             $48.05    $65.56    $78.75     $121.06
LA, OK, TX)                      $19.46    $37.84    $43.24      $75.00

West (CA, OR, WA,                $80.78    $91.12
AK, HI, AZ, CO, ID, MT,          $55.14    $78.05
NV, NM, UT, WY)                  $33.75    $65.00

National Average (C)             $50.96    $65.50    $73.96     $103.34

Average Change in Hourly Rates
In Fourth Quarter 2002:

                                        Dollars Per Hour
                                 (High/Average/Low) 4th Quarter
                                              2002
Tonnage Range                   1500-1999  2000-2999    3000+


Northeast
(ME, NH, VT, MA, CT
RI, NY, NJ, PA)

Southeast
(DE, DC, FL, GA, MD
NC, SC, VA, WV)

North Central                     $248.57    $296.73  $313.22
(IL, IN, MI, OH, WI, IA,          $136.15    $161.94  $213.15
KS, MN, MO, NE, ND, SD)            $54.95    $104.41  $170.35

South Central                     $195.00    $330.80  $450.00
(AL, KY, MS, TN, AR,              $134.52    $255.40  $450.00
LA, OK, TX)                        $80.00    $180.00  $450.00

West (CA, OR, WA,
AK, HI, AZ, CO, ID, MT,
NV, NM, UT, WY)

National Average (C)              $135.80    $181.83  $263.55

Average Change in Hourly Rates
In Fourth Quarter 2002:

                                Dollars Per
                                   Hour
                                (High/Avera
                                ge/Low) 4th
                                  Quarter
                                   2002
Tonnage Range                   Index (b)


Northeast
(ME, NH, VT, MA, CT                83
RI, NY, NJ, PA)

Southeast
(DE, DC, FL, GA, MD                84
NC, SC, VA, WV)

North Central
(IL, IN, MI, OH, WI, IA,           82
KS, MN, MO, NE, ND, SD)

South Central
(AL, KY, MS, TN, AR,               75
LA, OK, TX)

West (CA, OR, WA,
AK, HI, AZ, CO, ID, MT,           100
NV, NM, UT, WY)

National Average (C)

Average Change in Hourly Rates
In Fourth Quarter 2002:

(a)An adjustment factor is used where data did not already include
profit and labor.

(b)Relative to highest-cost region (which equals 100); value shown is a
weighted average for all size ranges.

(c)Weighted geographically according to PLASTICS TECHNOLOGY'S
Manufacturing Census.