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THERMOPLASTICS DISTRIBUTION EXPECTED TO GROWN IN NEXT DECADE

 FAIRFIELD, N.J., Sept. 13 /PRNewswire/ -- In 1980, resin suppliers moved an estimated 2 percent of their sales through authorized distributors. By the beginning of the 1990s, distributor share tripled to 6 percent of total resin poundage sold, according to Kline & Company's Plastics Group, a leading plastics industry consulting firm. Growth in volume of thermoplastic resins handled by distributors is expected to continue in the United States through the year 2000, especially for intermediate and engineering polymers, as evidenced by recent actions by such resin suppliers as Dow Chemical. In addition, such major trade factors as GM and Procter & Gamble are beginning to recognize and capitalize on their buying power by negotiating directly with distributors to supply resin to molders who then supply them with plastic products.
 Furthermore, with the nearing completion of the North American Free Trade Agreement (NAFTA), distributors will play an increasing role in servicing international accounts. The primary impact will be felt by commodity resin suppliers, but intermediate and engineering resin producers will also find outlets through distributors in developing Mexican markets.
 Kline & Company is pleased to announce its plans to update the well received and highly regarded syndicated survey it completed in 1990 on thermoplastics distribution. The results of the second edition of this unique survey and analysis will be offered in a 200-plus page report, "The Outlook For Thermoplastics Distribution 1993-2000." This new report will represent a comprehensive analysis of the changing structure and workings of the North American plastics distribution industry. The study will be divided into three major sections:
 -- An updated analysis of the North American thermoplastics
 distribution business, including Mexico and Canada
 -- Individual profiles of the leading plastics distributors
 themselves
 -- Profiles of leading resin producers and their distribution
 strategies
 Today, distributors of thermoplastic resins are becoming an increasingly important strategic sales channel between the resin supplier and the end user. As a result, their role is becoming more complex. Successful distributors work in partnership with the producer to add the utilities of service, timing, and location to both supplier and customer alike, offering such functions as:
-- Market coverage -- Just-in-time delivery -- Ordering flexibility
-- Market development -- Inventory management -- Sales contact
-- Customer support -- Market intelligence -- Financial services
-- Product mix -- Product availability -- Bulk breaking
 However, as growth begins to slow with increasing business maturity during the 1990s, distributors will be required to develop a more versatile and innovative approach to serving the market place. Resin suppliers are also recognizing the value distributors bring to this business. While sales of commodity resins by distributors will level off as a percentage of total commodity sales, growth in distribution of intermediate and engineering resins will continue at a strong pace further into the 1990s. Such a scenario will call for additional services from distributors and increased flexibility in responding to market demands. Kline & Company's new survey, "The Outlook For Thermoplastics Distribution 1993-2000," will provide insights into the future role of distributors and resin suppliers as they respond to changes in end-use markets and the resin supply chain.
 "The Outlook For Thermoplastics Distribution 1993-2000" will analyze the changing role of distributors across a full range of thermoplastic resins from commodity through intermediate as well as engineering/specialty grades. Numerous other important trends, including industry restructuring, increased technical and other service capability, changing business relationships, and shifts in foreign trade due to NAFTA, are expected to alter the shape of plastics distribution in North America through the year 2000.
 The report's format will be designed to make it useful to resin suppliers, compounders, distributors, and major fabricators of plastic resins alike. The industry analysis will be the core of the new survey. An overview of thermoplastics distribution will highlight the players, roles, products, markets and geographical regions that characterize the business. This will also include a thorough assessment of distribution market size in 1993 by category of resin, with projections to 2000. The analysis will conclude with a discussion of the future outlook for the role of the plastics distributor, its functions and services, relationships with both customers and suppliers, and business economics will then be updated. In particular, new services proposed by distributors or expected by suppliers and customers will also be covered.
 For more information on the scope the survey, or on subscription terms, please contact James M. Weatherall, Vice President-Plastics at 201-808-3467 or Louis M. Rossi, Project Manager-Plastics at 201-808-3447.
 -0- 9/13/93
 /CONTACT: James Weatherall of Kline & Company, 201-808-3467/


CO: Kline & Company, Inc. ST: New Jersey IN: CHM SU:

SB-MM -- CH001 -- 1098 09/13/93 08:07 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
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