Hourly rates unchanged in late '04.

* Custom injection molders' machine-hour rates were basically unchanged in the second half of 2004, according to responses to our latest survey from 115 plants nationwide. To be precise, the average hourly rate slipped less than half a point from June to December. Almost the same number of plants reported increases or decreases in hourly rates and 85% of respondents reported no change at all. Hourly rates have been on a downslide since mid-2003.

Meanwhile, custom molders' capacity utilization dropped 3.6 points from June to December, to 51.2%, the lowest level since mid-2003. December capacity utilization was highest among molders in the Northeast and lowest in the Southeast.

Twice as many molders--46% of survey respondents--reported declines in capacity utilization as reported increased utilization in the second half of 2004. That was the first time that declines outweighed increases in utilization since the end of 2002.

New orders for injection molds were unchanged at year's end compared with mid-year 2004, according to reports from 76 moldmaking shops.

Molders optimistic

Despite these soft economic results, optimism among responding custom molders soared at the end of 2004. More than 65% expected business conditions to improve in the near term, up from 57% six months earlier. Only 16% of respondents foresaw worsening business conditions, which was down a point from June.

This was only the second time since 1999 that optimists topped 60% of the sample. The level of optimism was strongest among molders in the West and weakest in the South Central region.

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       Without   Without    Without
Tonnage     Profit    Operator   Either

<100         12.0%     17.3%      30.7%
100-299      8.3%      13.0%      25.1%
300-499      6.7%      10.8%      20.9%
500-749      4.7%       8.9%      17.3%
750-999      5.9%      13.0%      20.8%
1000+        4.9%      11.7%      17.8%

(a) Cumulative national averages over manv survevs.

CUSTOM INJECTION MOLDERS' MACHINE-HOUR RATES WITH
OPERATOR, PROFIT MARGIN INCLUDED (a) (115 PLANTS)

                                           Dollars Per Hour
                                          (High/Average/Low)
                                            4th Quarter 2004

Tonnage Range                       < 50        50-99      100-299

Northeast                          $125.00      $59.84      $59.84
(ME, NH, VT, MA, CT,                $41.88      $35.74      $39.07
RI, NY, NJ, PA)                     $18.56      $16.82      $23.20

Southeast                           $40.63      $45.00      $55.00
(DE, DC, FL, GA, MD,                $35.67      $32.71      $41.92
NC, SC, VA, WV)                     $29.00      $16.47      $32.00

North Central                       $65.00      $86.19      $98.19
(IL, IN, MI, OH, WI, IA,            $33.39      $36.83      $42.41
KS, MN, MO, NE, NO, SD)             $13.45      $20.18      $20.18

South Central                       $52.20      $52.20      $58.00
(AL, KY, MS, TN, AR,                $32.16      $32.97      $39.33
LA, OK, TX)                         $10.18      $13.92      $26.90

West (CA,OR, WA,                    $70.00      $82.35     $137.25
AK, HI, AZ, CO, ID, MT,             $44.49      $37.29      $62.45
NV, NM, UT, WY)                     $23.20      $37.12      $40.00

National Averages (c)               $37.55      $35.83      $44.65

Average Change in Hourly Rates

In Second Quarter 2004:             -0.4%

                                           Dollars Per Hour
                                          (High/Average/Low)
                                            4th Quarter 2004

Tonnage Range                     300-499     500-749     750-999

Northeast                          $376.60      $71.37      $94.43
(ME, NH, VT, MA, CT,                $63.44      $66.98      $80.16
RI, NY, NJ, PA)                     $30.16      $60.39      $65.88

Southeast                           $62.50      $73.98
(DE, DC, FL, GA, MD,                $51.98      $71.39
NC, SC, VA, WV)                     $38.00      $69.94

North Central                       $87.00      $87.00     $118.00
(IL, IN, MI, OH, WI, IA,            $46.40      $59.67      $70.06
KS, MN, MO, NE, NO, SD)             $16.90      $33.63      $33.63

South Central                       $75.40      $87.00
(AL, KY, MS, TN, AR,                $50.46      $62.19
LA, OK, TX)                         $26.90      $47.08

West (CA,OR, WA,                   $195.03     $274.50     $369.88
AK, HI, AZ, CO, ID, MT,             $82.45     $271.75     $363.36
NV, NM, UT, WY)                     $45.00     $269.00     $356.85

National Averages (c)               $57.87      $99.37     $136.37

Average Change in Hourly Rates

In Second Quarter 2004:

                                           Dollars Per Hour
                                          (High/Average/Low)
                                            4th Quarter 2004

Tonnage Range                    1000-1499   1500-1999   2000-2999

Northeast                           $93.33
(ME, NH, VT, MA, CT,                $93.33
RI, NY, NJ, PA)                     $93.33

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

North Central                      $107.60     $149.37     $217.09
(IL, IN, MI, OH, WI, IA,            $96.24     $123.38     $197.39
KS, MN, MO, NE, NO, SD)             $74.73      $65.88     $175.00

South Central                      $120.00                 $180.00
(AL, KY, MS, TN, AR,               $120.00                 $180.00
LA, OK, TX)                        $120.00                 $180.00

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

National Averages (c)               $98.53     $123.38     $193.69

Average Change in Hourly Rates

In Second Quarter 2004:

                                     Dollars Per Hour
                                   (High/Average/Low)
                                    4th Quarter 2004

Tonnage Range                      3000+     Index (b)

Northeast
(ME, NH, VT, MA, CT,                                73
RI, NY, NJ, PA)

Southeast
(DE, DC, FL, GA, MD,                                69
NC, SC, VA, WV)

North Central                      $301.12
(IL, IN, MI, OH, WI, IA,           $286.82          68
KS, MN, MO, NE, NO, SD)            $272.51

South Central
(AL, KY, MS, TN, AR,                                66
LA, OK, TX)

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

National Averages (c)              $286.82

Average Change in Hourly Rates

In Second Quarter 2004:

(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.

CUSTOM INJECTION
CAPACITY UTILIZATION

2nd Qtr   53
2002

4th Qtr   53
2002

2nd Qtr   51
2003

4th Qtr   55
2003

2nd Qtr   55
2004

4th Qtr   51
2004

Note: Table made from bar graph.