Slow Growth for Consumer Injection Molding

Market Outlook

Slow Growth for Consumer Injection Molding
By Bart Thedinger, Mastio & Company


Mastio & Company’s most recent Injection Molding Markets Study forecasts slow growth in the next two years for injection molded appliances, furniture, housewares, and consumer electronics/telecommunications. Collectively, these market segments consumed 1.87 billion lb of injection molding resin in 2007. They are expected to reach 2.04 billion lb by 2010, representing an average annual growth rate (AAGR) of 2.9%. (Mastio’s forecast for other molded consumer products appeared in November. See Learn More box.)
Not only is growth slow, but profit margins are slim in this uncertain economy. Cost hikes for raw materials, energy, transportation/shipping, and labor are all squeezing profits. Imports, government policies, and consolidation in the retail sector have also kept profits low over the past few years. In particular, manufacturers have had a tough time passing on the rising costs of raw materials, and most have had to absorb as much of the cost as they can.
The health of these consumer molding markets is determined primarily by consumer confidence and the housing market. Although housing is in a slump, the 11.4 million homes that were built in the 1970s now require improvements, repairs, and updating. Remodeling should encourage the need for new housewares, furniture, appliances, etc.


SPEED TO MARKET
Resin consumption for injection molded housewares is expected to see only 2.7% AAGR through 2010. Plastic housewares are typically smaller, inexpensive, high-volume, low-margin products and thus are facing heavy pressure from imports. However, foreign housewares suppliers are at a disadvantage when it comes to identifying emerging trends in North American consumer demand. Domestic consumers expect an array of colors, styles, and textures, as well as improvements in durability and functionality. Foreign suppliers are much slower to the market with new products, giving domestic producers an advantage.

FURNITURE ON TOP
The furniture market is expected to experience the highest growth with an AAGR of 4.2%. This growth is attributable to a trend toward home remodeling and the increasing popularity of home offices. Lower labor costs and price cutting have made it difficult for furniture producers in the U.S. and Canada to compete with the Far East. However, furniture manufacturers claim that imports don’t affect large injection molded furniture items because of high shipping costs. One processor admitted to “China-proofing” its furniture products by making them bulky and hard to stack, implementing frequent color changes, and adding material-saving technology such as gas-assisted molding.

APPLIANCES & ELECTRONICS
Growth opportunities in appliances follow new residential housing construction, which stagnated in 2007 and 2008. Thus, the appliance market anticipates only a 2.5% AAGR through 2010.
A sluggish AAGR of 2.9% is also expected for consumer electronics and telecommunications. New technologies and product innovations are the name of the game when it comes to keeping demand afloat. Examples include advances in cell phones, thin, large-screen plasma or LCD televisions, and computer monitors that can receive digital, high-definition (HDTV) formats.

About the Author

Bart Thedinger is managing partner of Mastio & Company in St. Joseph, Mo., a consulting firm specializing in industrial-consumer opinion research and market trends in the plastics industry. For more information, call (816) 364-6200 or visit www.mastiogale.com

Training: Basic Chemical Safety Handling

Subject: InHouse Training- Basic Chemical Safety Handling Training on 12 Dec


Dear All,

Please be informed that we will be having “Basic Chemical Safety Handling Training” on 12 December 2009.

This is a one day training program will enable participants to adopt safe work practices on industrial chemical handling, storage and disposal to prevent accidents. Training will conduct at PLO 47or PLO 18 In house training room which will finalise on the confirmation letter. I attached herewith syllabus for your reference. For registration, kindly return the STDF with approver signature before 20 November 2009.

Please do not hesitate to contact me for clarifications should you have any doubts or further inquiries.

Dear Lya, Asmah & Nai Yong kindly assist to forward this message to all relevant departments on your side.


Thanks & Regards

Harianna Ibrahim
Human Resources Department
V.S Industry Berhad
PTD 86556, Jalan Murni 12, Murni Ind. Est.
81400 Senai, Johor

Tel : 07-5973399 ext 2109

source:http://plasticsnews.com

Safety Week for V.S. Industry and its Subsidiaries

Dear all GM, Sr Manager, Managers and fellow colleagues,


The management has decided and confirmed that week 46 (09.11.2009 till 13.11.2009) as a Safety Week for V.S. Group of Companies. The purpose of the safety week is to create and enhance the safety awareness among our employees. Several local authorities has been invited and jointly participate in this coming safety week. The mentioned authorities are DOSH, BOMBA, DOE, PDRM and MOH.

Beside the talk from the invited local authorities, we also have the "Spot the hazard" competition open for all V.S. Group of Companies’ workers. The winner will be selected from each factory for this competition.

The opening ceremony will be held as follow:-

Date: 09.11.2009
Time: 9.00am
Venue: VSI

All Assistant Managers (M1) and above are cordially invited to joint the opening ceremony..


Below are the tentative of the Opening Ceremony:

9 November 2009 - 13 November 2009

9.00am : Guest Arrival
Guest:
DOSH, Johor
Pejabat Kesihatan Kulai
Pejabat Polis Daerah Kulaijaya
Pejabat Bomba dan Penyelamat Kulaijaya
DOE, Johor
GM, Managers from VSI,VSE,VSP 129,VSP 39,VST
9.30am : Speech by DOSH Director
9.40am : Speech by Operation Director, YK Ng
9.50am : Token of Appreciation giving to all participant (DOSH, Pjbt Kesihatan
Kulai , Pejabat BOMBA dan Penyelamat, DOE) by VSI Executive Director
Mr. T.S. Gan.
10.00am : Official Opening Ceremony (balloons ribbon cutting) by VSI Executive
Director and all VSI Group of Companies, GM.Group Photo.
10.10am : Refreshment

****************************
Chong Wei Min
Administration Manager
Human Resource & Administration Department
VS INDUSTRY BERHAD
Ext: 2116
Email: wmchong@vs-i.com


Think Safety, Work Safely
*****************************

~Comic This Month~

source : The Star online.

Dinner RND 2009-The Zone (picture)

Hi all,
Below some picture during last week dinner... thanks for those who snap all pict.

Dinner RND 2009-The Zone

Below are the dinner memo for all members...

Dear all R&D team members,

we are planning to arrange the dinner for R&D team members including the farewell dinner for YW Leow on the same day. Below are the details of the dinner:

Date: 29 September 2009
Time: 6:30pm-10:30pm
Place: Salt n’ Pepper Café Restaurant, The Zon Regency Hotel, JB (Refer to map)

Hope we all can be there together and make our department is a better place to work & stay.