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Georgia's Plastics Industry

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Georgia's Plastics Industry GGeeoorrggiiaa’’ss PPllaassttiiccss IInndduussttrryy Community & Economic Development Georgia Power July 2002 ©Georgia Power Company, Inc. 2002 Resources Used In This Report: Georgia Department of Industry, Trade and Tourism Georgia Department of Labor The Society of the Plastics Industry American Plastics Council Bureau of Labor Statistics Bureau of Economic Analysis Plastics News 2001 Georgia Manufacturing Directory Special thanks to Moore Associates Consulting, Ltd. & Georgia Department of Technical & Adult Education TTaabbllee ooff CCoonntteennttss Executive Summary 1 Introduction 2 Plastics Shipments 4 Plastics Employment 8 Plastics Wages 10 Unionization 11 Plastics Growth 12 Support Services & Resources 16 Georgia Plastics Companies 20 Appendix 23 EExxeeccuuttiivvee SSuummmmaarryy The plastics industry is becoming increasingly important to Georgia’s economy. Currently, there are over 470 plastic production facilities in the state. Growth in Georgia’s plastics industry has outpaced that of the U.S. overall. Since 1991, plastics shipments in Georgia have increased by 112 percent. Employment has grown by 88 percent. By comparison, plastics shipments in the U.S. grew by 86 percent since 1991 while employment grew by 42 percent. Additionally, plastics industry capital investment in Georgia grew at a faster rate than that of the U.S. overall. Between 1994 and 1999, Georgia’s plastics industry capital investment grew by 59 percent. U.S. capital investment grew by 57 Defining the plastics industry is a challenge percent. due to the way plastic products and Plastics shipments in Georgia reached $10.7 billion in 2000, components have entrenched themselves into th the fabric of our everyday lives. Market making the state the 11 largest in value of shipments in the categories ranging from packaging to building nation. Georgia ranks 3rd nationally in shipments growth. and construction to transportation to consumer and institutional products are Over 39,000 Georgians work in the plastics industry. From inundated with plastic components and 1996 to 2000, Georgia was the 4th fastest growing state in the additives. nation in terms of plastics industry employment. In 2000, the Georgia’s National Rankings state ranked 14th nationally for plastics industry employment. • 3rd in value of shipments Georgia’s average weekly wage for the plastics industry is 8.3 growth percent below the national average. • 4th in plastics industry employment growth Membership in Georgia’s three active unions that have • 11th in value of shipments plastics manufacturing workers continues to shrink, th • 14 in industry employment decreasing by 34 percent over the past ten years. Overall, nd • 2 in number of Georgia’s union membership levels are the 11th lowest in the compounding machines th country. • 6 in number of film & sheet extrusion machines The plastics industry in Georgia is supported by a number of th • 10 in number of organizations and programs. The Georgia Department of Rotomolding machines Technical and Adult Education offers a variety of training • 6th in number of Rotomolding facilities opportunities for workers. Georgia’s award-winning Quick • 8th in number of Start program offers customized training at no cost to new or Compounding facilities expanding companies. World-class research and development programs at the Georgia Institute of Technology focus on bringing cutting-edge technology to real world applications. 1 IInnttrroodduuccttiioonn Some view the rise of polymer technologies as one of the most important innovations of the twentieth century. Certainly our everyday lives have been transformed by the use of plastics in everything from orange juice containers to components in airplanes. Increasing product shipments and employment trends exceeding those of overall manufacturing attest to the growing demand for plastic products. Georgia’s 1999 rubber and plastics industry Gross State Product (GSP) contribution of $1.5 billion Plastics are polymers – mostly represented 3.3 percent of total manufacturing thermoplastics, which can be heated and GSP – up from 2.5 percent in 1980. Nation- reformed over and over again. Polymers’ wide, rubber and plastics contributed $55 billion resistance to chemicals, thermal and electrical insulating properties, light weight, and to Gross Domestic Product in 1999 compared to processing flexibility give them unique appeal a $17 billion contribution in 1980. and the capability to be manufactured to meet very specific needs. While U.S. employment in manufacturing declined by 0.5 percent annually between 1980 and 2000, employment in plastics increased by 2.1 percent. In Georgia, rubber and plastics employment increased by 4.3 percent annually, far outpacing the state’s 1.1 percent manufacturing employment increase. The number of plastics-producing facilities is also on the rise. Since 1991, the number of plastic producers in Georgia grew from 368 to 474, a 29 percent increase. Many of the top plastics processors in the country, such as Pactiv Corporation, Sweetheart Cup, and Owens-Illinois have facilities in Georgia. The data in this report reflect numbers from both the primary and captive plastics industries. The primary plastics industry includes Standard Industrial Classifications (SICs) 2671, Plastic Packaging, 2673, Plastic Bags, 2821, Plastics 2 Materials and Resins, and 308-, Miscellaneous whole, SIC 308- accounts for 88 percent of Plastics Products. Plastics industry NAICS jobs in U.S. primary plastics manufacturing. codes (North American Classification System), adopted in the most recent Since 1991, Georgia’s employment in these Economic Census data from the Census classifications has increased 88 percent while Bureau, include all the 3261 segments (Plastics shipments have increased 112 percent. Product Manufacturing) as well as 325991 Between 1994 and 1999, capital investment (Custom Resins). grew by 59 percent. With such substantial growth, Georgia’s plastics industry will remain The captive plastics industry includes those competitive at the national level and offer a activities related to the primary industry but wealth of opportunity for investment in the performed in plants classified in other future. industries. The most obvious example would be the production of plastic milk bottles taking place in a milk processing plant. More specific primary industry information will be given for nine separate four-digit classifications in SIC 308 – (NAICS 3261 and 325991) shown in the following table. As a Primary Plastics SICs/NAICS Codes Industry Description SIC NAICS Packaging paper and plastic 2671 326112 film Plastics bag 2673 326111 Plastics film and sheet 3081 326113 Plastics profile shapes 3082 326121 Growth of Georgia’s Laminated plastics plate, sheet 3083 32613 Plastics Industry and profile shapes between 1991 and Plastics pipe 3084 326122 1999 Plastics bottles 3085 32616 Plastics foam products 3086 32615/32614 Employment: + 88% Custom resins 3087 325991 Shipments: +112 % Plastics plumbing fixtures 3088 326191 Plastics products, not 3089 326122/326121 elsewhere classified 3 PPllaassttiiccss SShhiippmmeennttss Georgia is the 11th largest plastics producer nationally in terms of primary and captive plastics industry shipments. With shipments Shipments totaling $10.7 billion, Georgia is one of only Rank State ($ billion) two southeastern states in the top eleven. The 1 Texas 35.3 state alone generated over 3 percent of the 2 California 27.6 nation’s total industry shipments. Combined, 3 Ohio 23.2 the top eleven states for plastics 4 Illinois 22.8 manufacturing make up 63 percent of the 5 Michigan 22.7 nation’s $330 billion plastics industry 6 Pennsylvania 16.4 shipments. 7 Indiana 13.8 9 North Carolina 12.7 8 New Jersey 12.1 Georgia’s Shipments Summary 10 New York 11.6 Shipments in 2000: $10.7 billion 11 Georgia 10.7 Shipments in 1991: $5 billion Growth ’91 – 2000: 112% Additionally, Georgia’s value of shipments has grown faster than the value of shipments for the U.S. overall – as illustrated by the graphs below. Value of Shipments Continues to Increase U.S. Shipments Increased 86 Percent Georgia Shipments Increased 112 Percent $400 $12 $10.3 $10.7 $350 $330 $10 $300 $274 $8.2 $8 $250 $225 e e $200 $177 se $6 as rea $5.0 cre Billions nc Billions In $150 InI % 86% $4 12 $100 1 $2 $50 $0 $0 1991 1994 1996 2000 1991 1994 1996 2000 4 11 States Account for 62 Percent of All U.S. Plastics Shipments New York Michigan $11.6 $22.7 Pennsylvania $16.4 New Jersey Ohio Illinois $12.1 $23.2 $22.8 Indiana $13.8 California North Carolina $27.6 $12.7 Georgia $10.7 Texas Source: Society of the Plastics $35.3 Industry, 2000 Over 470 plastics facilities, most of which are Approximately 75 percent of the plastics classified in SIC 308-, contributed to manufacturing companies in Georgia are Georgia’s high level of production. The 308 classified in one of three SICs; 3089, 3086 or and 2671/2673 SIC subcategories (or 3261 & 3081. 325991 NAICS) made up over $4.2 billion of Georgia’s plastics shipments in 1999. Larger Georgia companies manufacturing products that fall within SIC 3089, 3086 or The value of shipments from the largest four- 3081 are listed in the table on the following digit SICs, Miscellaneous Products, Foam pages. Products, and Film, totaled $2.5 billion. Major Plastics Markets Packaging, building and construction, and consumer and institutional markets are the major end-use destinations for plastic products. 5 Major Categories of Georgia Plastics Production (Value of Shipments) Miscellaneous Plastic Plastic
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