The Leader - January/February 2009 - (Page 42)

SP E C IAL F E A T UR E : P L A S TICS prices will ease the plastics industry’s burden in the short-term while industry leaders increase efficiency, open new markets and capitalize on new technology. “Plastics are going to play a vital role in emerging new-energy applications and markets,” said Bill Carteaux, president of SPI. “I also truly believe that our exporters are getting much smarter about realizing this is a global economy and opening new markets.” Two plastics giants also are reinvesting and reinvigorating the town and state where they were born. Goodyear is building a new world headquarters in Akron, Ohio, and Bridgestone-Firestone is expanding its research and development headquarters in Akron. Plastics have been the leading industry in western Ohio for a century, and the region continues to boast some of the world's leading liquid crystal and polymer research. Over 16,000 polymer industry employees live in the Akron MSA, which is also the leading manufacturer of plastic processing equipment in the U.S. “There are a couple of positive signs with the industry here,” said Rebecca Guzy Woodford, vice president of the Akron Chamber of Commerce. PET mirror A segment of the plastics industry, polyethylene terepthalate (PET), mirrors the industry as a whole. The National Association for PET Container Resources (NAPCOR) reports static exports over the past five years due primarily to overcapacity. Of the five manufacturers active in the U.S., four reported mostly flat sales, and one, Wellman Inc., was in bankruptcy court in mid December. While declining oil prices drive down the price of production, it does leaves plastic 2 0 0 9 Th E LE AdE R recyclers facing lower costs for their goods. With declining demand for recyclables in China, the largest market for recycled plastics, that sector of the industry took a nose dive in late 2008. At the beginning of October, PET bales sold for 25 cents per pound at the Port of Los Angeles. By the end of the month, the price was 9 cents per pound, though it bounced back above 10 cents per pound by November. At East Coast ports, buyers were hesitant to make a move while waiting to see where the market bottomed, said Dennis Saybourin, executive director of NAPCOR. “The plastics industry has been vibrant with sales and domestic growth, but it’s going through some tough times right now," Saybourin said. “Like all commodities, recyclable commodities have taken a huge step change since the first of October. It’s going to be some time before the bottom is found.” 42 jAnUARy / FEbRUARy

Table of Contents Feed for the Digital Edition of The Leader - January/February 2009

The Leader - January/February 2009 Contents Leadership Message from the CEO Real Estate in the News Mergers and Aquisitions Assessing Green Building Performance Measuring Space You Actually Use Global Trends in Sustainable Real Estate Whirlpool’s Lee Utke Northmarq’s Kevin Farrell Plastics: Hoping for Resiliency in Resins Regional Profile: Heartland Holding Strong Industry Profile: Ascendas Brings New Age Business Space to Asia-Pac Industry Tracker From the Applied Research Center Discovery Forum Findings Capital Corner Career Development Young Leader Economic Development in the News Learning Spotlight Connect With CoreNet Global Index of Advertisers A Look Ahead In our Next Issue Calendar of Seminars

The Leader - January/February 2009

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