the u.s. plastics industry and southeast asia – feedstocks and trade
TRANSCRIPT
The U.S. Plastics Industry and Southeast
Asia – Feedstocks and Trade
Presented By:
Michael D. Taylor
Vice President, International Affairs and Trade
Jakarta, Indonesia
November 11-12, 2015
Agenda
Background on SPI
Overview of U.S. Plastics Industry
Shale Gas as a Game Changer
Natural Gas in Southeast Asia
The U.S. Plastics Industry and Trade
U.S. Plastics Industry Trade with Southeast Asia
Q&A
The U.S. Plastics Industry
In 2014…
• 3rd largest industry in U.S.
• Record-breaking domestic demand
Up 6.0% to $298.3 billion
• Shipped more than $427.3 billion in goods
• Employed 940,000 people
• Operated 16,806 facilities in every U.S. state
U.S. Demand For Plastics Sets
New High Level
$0
$50
$100
$150
$200
$250
$300
$350
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$ in b
illio
ns
Machinery Molds Plastic Products Resin
Apparent Consumption = Shipments + Imports – Exports
Source: SPI “Global Business Trends” (2015)
Plastics Have Historically Grown
Faster Than All Manufacturing
Comparative Growth Rates 1980 - 2014
Plastics
Mfg All Mfg
Employment 0.3% -1.3%
Real Shipments 2.6% 0.8%
Real Value Added 2.3% 0.8%
Productivity Growth 2.3% 2.1%
• Plastics manufacturing
employment grew 0.3 percent
per year since 1980
• The value of manufactured
shipments grew by 2.6
percent per year since 1980
• Productivity grew by 2.3
percent per year since 1980
Source: SPI “Size and Impact of the U.S. Plastics Industry” (2015)
Shale Energy: Economic
Contribution To Manufacturing
2012 2015 2020 2025
Employment
Total Manufacturing 303,383 395,298 464,897 522,798
Aluminum 1,171 1,484 1,558 1,693
Steel 19,978 23,610 23,460 26,242
Plastics* 8,974 12,878 14,948 16,438
Fertilizers 506 899 4,851 5,805
Value Added ($M)
Total Manufacturing 36,750 48,776 62,035 71,080
Aluminum 147 189 204 223
Steel 3,166 3,704 3,619 4,024
Plastics* 768 1,098 1,282 1,414
Fertilizers 75 131 688 822
Labor Income ($M)
Total Manufacturing 23,826 31,558 39,355 44,872
Aluminum 101 130 140 153
Steel 2,105 2,455 2,389 2,658
Plastics* 523 739 868 961
Fertilizers 50 88 460 550
Economic Contribution Summary
Includes NAICS Code 3261 (plastics); does not include rubber (3262) or resins (3252).
Source: IHS
Added Industrial Production As A
Result Of Shale Energy Development
Source: IHS
2.2%
1.7%
1.5%
1.5%
1.4%
1.2%
1.2%
1.0%
0.4%
1.3%
Iron and Steel Products
Resins and SyntheticMaterials
Basic Organic Chemicals
Plastics and RubberProducts
Fabricated Metal Products
Agricultural Metals
Nonmetalic Minerals
Petroleum and CoalProducts
Machinery
Total Manufacturing Average
2012
6.7%
6.0%
7.1%
4.1%
3.2%
6.9%
3.5%
5.8%
3.3%
3.5%
2020
7.4%
8.1%
9.5%
4.6%
4.8%
7.7%
4.1%
6.5%
4.0%
3.9%
2025
Positive
trade balance
of $10.4 billion
$51.7B PLASTICS 7.7%
2014 Trade Statistics
In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1
percent from 2013
$35.1B RESINS 1.8%
$25.0B PRODUCTS 5.1%
$528.3M MOLDS 10.1%
$1.5B MACHINERY 7.7%
Source: SPI Global Business Trends 2015
Top Industry Export Markets
$0
$5
$10
$15
$20
$25
$30
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
U.S
. $
Bill
ion
s
Mexico Canada China Belgium Brazil All Others
Top Plastics Industry
Export Markets 2014
All Others $23.5 billion
Mexico $15.8 billion
Canada $13.2 billion
China $5.2 billion
Belgium $2.4 billion
Brazil $2.1 billion
Total $62.1 billion
Source: SPI Global Business Trends 2015
Opening Markets To The U.S.
Plastics Industry
Trans-Pacific Partnership (TPP)
• 2014: U.S. plastics
industry exports to the 11
TPP countries were more
than $34B
• Since 2000: plastics
exports to TPP countries
increased more than 91%
• 2014: plastics industry
trade surplus with TPP
countries was $13.7B
Transatlantic Trade & Investment Partnership (TTIP)
• A high-standard TTIP
would advance trade and
investment liberalization
and address regulatory
and other non-tariff
barriers
• Based on 2011 trade
flows, the U.S. plastics
industry would be one of
the top benefiting sectors
with a total potential tariff
savings of $465M
Signed now goes
to Congress
11th Round
Miami Oct 19-23
-10
-5
0
5
10
15
20
25
2000 2002 2004 2006 2008 2010 2012 2014
Resins Plastic Products Molds Machinery
U.S. Plastics Industry Trade
Balance By Segment 2000-2014
Source: SPI Global Business Trends 2015
Billions of U.S. Dollars
-2
0
2
4
6
8
10
12
2000 2002 2004 2006 2008 2010 2012 2014
Resins Plastic Products Molds Machinery
U.S. Plastics Industry Trade
Balance By Segment For FTA
Partners 2000-2014
Source: SPI Global Business Trends 2015
Billions of U.S. Dollars
U.S. Plastics Industry Exports To
ASEAN Countries 2000-2014
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,0002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Singapore Thailand Malaysia Indonesia Vietnam Philippines
U.S
. $
Mill
ions
U.S. Plastics Industry Exports To
ASEAN Countries 2000-2014
0
100
200
300
400
500
6002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Thailand Malaysia Indonesia Vietnam Philippines
U.S
. $
Mill
ions
U.S. Plastic Resin Exports To
ASEAN Countries 2000-2014
0
200
400
600
800
1,000
1,200
1,4002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Singapore Thailand Indonesia Vietnam Malaysia Philippines
U.S
. $
Mill
ions
U.S. Plastic Products Exports To
ASEAN Countries 2000-2014
0
100
200
300
400
500
6002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Singapore Malaysia Thailand Philippines Indonesia Vietnam
U.S
. $
Mill
ions
U.S. Plastic Industry Imports
From ASEAN Countries
2000-2014
0
100
200
300
400
500
600
7002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Thailand Singapore Malaysia Vietnam
Indonesia Philippines Cambodia
U.S
. $
Mill
ions
Thank You!
谢谢 Merci Vielen Dank
Grazie ありがとうございました 감사합니다
Obrigado Спасибо Gracias Teşekkürler
Questions & Answers
Michael Taylor
202-974-5232