Friday, June 17th, 2016

On Father’s Day, Get to Know Some of SPI’s Family-Owned Member Companies

Just like families themselves, no two family-owned businesses are the same. The plastics industry is home to many of these companies and in honor of Father’s Day, SPI highlights some family-owned members. Working with family to operate a business can be challenging and rewarding at the same time, but these companies illustrate that the rewards of passing down best practices from generation to generation, and the pride that comes from carrying on family traditions, is a big part of what makes working at these companies so worthwhile.

1. Arburg

The Hehl family, and two generations of Arburg ownership via Plastics News.

The Hehl family, and two generations of Arburg ownership via Plastics News.

In 1923, Arthur Hehl founded Feingeräte-Fabrik Hehl in Lossburg, Germany where he produced precision instruments for medical applications. In 1943, Arthur’s son Karl renamed the company Arburg and expanded into injection molding. In 2005, Karl and Eugen Hehl passed management of the company on to its third generation, which included Michael Hehl, Arburg’s managing partner. Michael told Plastics News “The achievements of my father and uncle can’t really be put into words…To transform a little workshop into a global company within an industry is exceptional. As the third entrepreneurial generation, we also feel committed to this path.”

2. Shuman Plastics

From left: Dan, Charles and Ken Shuman via Plastics News.

From left: Dan, Charles and Ken Shuman via Plastics News.

In 1947, Phillip Shuman founded Shuman Plastics Corporation as a scrap business where he was later joined by his sons Charlie and Hy. In 1994, Charlie took full ownership of the company, which is now a leader in recycling and the distribution of thermoplastic resin and compounds. After Charlie retired in 2008, he sold the company to his two sons Ken and Dan. Ken told Plastics News “I’d worked with him for 23 years and with my brother Dan for about a dozen years at that point. Our dad was such a strong personality and accomplished business person that I honestly questioned if I could ever fill his shoes. It occurred to me that I could never do so, but I could still lead and run this business.”

3. Superior Die Set Corp.

From left: Frank Janiszewski, the current president of Superior Die Set, Casimir H. Janiszewski, former CEO and current CEO Casimir S. Janiszewski via Plastics News

From left: Frank Janiszewski, the current president of Superior Die Set, Casimir H. Janiszewski, former CEO and current CEO Casimir S. Janiszewski via Plastics News.

Superior Die Set was founded by Kasimir Janiszewski in 1923. The company manufactures die sets, mold bases and three platen presses, among other products. Under the leadership of the third generation, Casimir S. Janiszewski and Frank Janiszewski, the company now has multiple manufacturing facilities, warehouses and distribution centers. Nick Janiszewski, fourth generation employee, stressed the importance of family lessons when he told Plastics News “The balance of the education about how things work here at Superior Die Set happens by putting in the hours—doing the hard work, getting the years of experience, and listening to and learning from the ‘history lessons’ taught to the younger generations by their elders.”

 

4. Teknor Apex

Jonathan Fain, left, and Michael Roberts of Teknor Apex Co via Plastics News.

Jonathan Fain, left, and Michael Roberts of Teknor Apex Co via Plastics News.

Alfred Fain founded Teknor Apex in 1924 and the company started as a tire recapper. During World War II, the company expanded into plastics due to a shortage of rubber, and today Alfred’s grandson, Jonathan Fain, is chairman and CEO of the company, overseeing more than 2,000 employees worldwide and annual revenue of more than $600 million. Of maintaining a family firm, Jonathan noted in Plastics News that “You need to work at it…That’s a real part of my job. One is to run the company and another is to keep family members informed. They’re kind of like shareholders.”

 

5. Wittmann Battenfeld

Michael Wittmann at Fakuma via Plastics News.

Michael Wittmann at Fakuma via Plastics News.

In 1976, Dr. Werner Wittmann founded Wittmann to make water flow regulators. In 2008, Wittmann took over Battenfeld and expanded into injection molding and opened new production facilities in 7 countries. Today, Werner’s sons Michael and Thomas Wittmann hold leadership roles. Michael wants to keep the family legacy and has recently hired his son to work at the factory. According to Plastics News, Sonny Morneault, Wittmann’s vice president of sales at the company’s operation in Torrington, Conn., noted there are benefits to being a family-owned business: “There are many advantages but I think the most important is the ability to be nimble…We’re nimble and quick on our feet. That’s an invaluable benefit, for sure.”

 

 

Thursday, June 9th, 2016

Plastics Industry Welcomes First Bipartisan TSCA Update in 40 Years

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SPI President and CEO William Carteaux

Earlier this week the Senate approved a much-needed update to the Toxic Substances Control Act (TSCA). The bill is now headed to President Barack Obama’s desk for signature. Here’s what SPI President and CEO William Carteaux, had to say about the first substantive update to TSCA in four decades:

“The U.S. plastics industry and its partners have worked tirelessly with multiple Congresses and administrations to make our nation’s outdated chemical regulatory infrastructure stronger and more responsive to the needs of today’s consumers and companies.

Today those efforts have paid off in the form of bipartisan legislation marking the first substantive update to the Toxic Substances Control Act in four decades.

CongressSunriseViewThis consensus-based bill is the product of thoughtful discussions by House and Senate negotiators.  It gives consumers the confidence in the products they depend upon each day, while giving companies a more predictable regulatory system that’s based on science rather than rhetoric.  The plastics industry also applauds lawmakers for ensuring that the new bill provides for the preservation of confidential business information, ensuring that the growth this bill is certain to unlock won’t be jeopardized.

This is a great day for the U.S. plastics industry and its nearly one million workers and their families. We look forward to continuing to grow the American economy by manufacturing the safest, strongest and most technologically advanced products and materials.”

Wednesday, May 25th, 2016

The U.S. Plastics Industry’s Top Five Export Markets

Of the U.S. plastics industry’s $427 billion in annual sales, slightly more than 20 percent of that comes from exports, according to SPI’s 2015 Global Trends Report. The lion’s share of that goes to these top five export markets for the U.S. plastics industry as of 2015.

Sunday´s bikers in Paseo de la Reforma, Mexico

1) Mexico

No surprise that the first entry on this list is America’s closest neighbor and strongest trading partner.  The U.S. exported $15.8 billion in goods to Mexico in 2014. Mexico’s plastics industry relies greatly on its U.S. partners, particularly when it comes to resin, where the U.S. has a $6.7 billion surplus with Mexico.

Toronto skyline

2) Canada

The U.S. plastics industry exported $13.2 billion worth of products to its northern neighbor in 2014. The North American Free Trade Agreement (NAFTA) drives a great deal of America’s beneficial trade relationships with both Canada and Mexico, but this relationship goes both ways. Most U.S. polyethylene imports come from Canada, a country with rich hydrocarbon resources that can be converted into chemicals and resins.

Beijing, China CBD Cityscape

3) China

The world’s largest resin consumer is America’s third-largest export market, where U.S. companies had a $2.8 billion surplus in 2014 (as opposed to a $9.2 billion deficit for the industry as a whole).

Rio

4) Brazil

Brazil relies heavily on U.S. products from throughout the plastics supply chain, with the U.S. running trade surpluses with the country in all four plastics categories (resin, plastic products, molds and plastics machinery).

Yokohama

5) Japan

Japan could overtake Brazil to become the fourth-largest export market for U.S. companies (if it hasn’t already since the time of this writing) but regardless, it remains an important trade partner for the U.S. and ships a great deal of machinery put to use at U.S. companies.

Wednesday, April 20th, 2016

Why TSCA Reform Benefits Both the Public and the Plastics Industry

US CapitolThere’s much praise for both the House and Senate versions of the Toxic Substances Control Act (TSCA) legislation. Why? How does reforming a 40-year old piece of legislation impact an additive supplier in the value chain for an intricate piece in a larger finished product? Why should consumers be optimistic about the safety of future household products?

TSCA reform that is being negotiated by representatives from each chamber of Congress will update the 40-year-old regulatory framework to reflect today’s chemical manufacturing environment. In particular, we expect the negotiated version to overhaul the safety standards for chemicals entering the market, codify federal preemption language, and to protect confidential business information.

Here’s a look at what SPI and its members/stakeholders support:

Updated Safety Standards

TSCA will better define the safety standards that chemical manufacturers must meet so that consumers are more confident about the safety of chemicals in commerce. Costs and other non-risk factors should not be considered when evaluating the safety of a chemical. It is important TSCA consider potentially exposed subpopulations, such as children, to a chemical even under the intended conditions of use. Without these changes, it is difficult for businesses to demonstrate the safety of their products under the current, outdated regulatory system.

Federal Regulation to Preempt State Regulations

TSCA reform will reduce the need some states feel to step into the realm of chemical regulation. It’s more efficient for a company to comply with one federal regulation than it is to juggle 50 individual state regulations. The federal government recognizes this and is defining a threshold for states to implement their own regulatory standards.

Protect Confidential Business Information

Today’s TSCA reform outlines when information needs to be provided by private companies, but it also clarifies what is and is not protected. This confidence allows businesses to move forward with more innovative solutions to today’s chemical needs without worrying about disclosing trade secrets in the regulatory process.

U.S. manufacturers have made great strides in advancing chemical technology and use. These innovations make life as we know it possible. Unfortunately, the regulatory environment has not kept pace – but we expect this to change when negotiations conclude and a final bill is signed into law. We are confident that promising days lie ahead for those in the plastics industry impacted by TSCA.

Thursday, February 11th, 2016

Four Reasons Why New Duty Drawback Rules Will Benefit U.S. Plastics and Other Manufacturers

The Senate approved a compromise version of the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644) today. The bill would make American manufacturers more competitive globally by streamlining trade flows, reducing paperwork burdens for smaller shipments and, notably, making duty drawback more available to companies of all sizes.

ExportingPhotoTrade

Duty drawback is an oft-overlooked portion of U.S. trade law but it’s a powerful tool, defined as the refund, reduction or waiver of customs duties assessed or collected upon importation of an article or materials which are subsequently exported or destroyed. In English, that translates to, “if the U.S. charges a duty on something you import, but you use that imported item to produce an item that’s eventually exported, the U.S. will refund the duty it originally charged you.”

This is an especially powerful tool for plastics companies, but successfully taking advantage of it can often be too burdensome for many smaller organizations. Here are four reasons why that’s about to change, and why the new duty drawback provisions included in H.R. 644 are good for U.S. plastics.

1. The new statute makes drawback more available to companies of all sizes: successfully claiming drawback often means heavy paperwork; officials must be able to draw a clear line from the goods upon which the duty was first imposed to the exported good they eventually were a part of. Rather than tackle that process, many companies will opt to just pay the duty. The new bill, however, simplifies the process, giving more exporters an opportunity to reduce their costs with drawback.

2. It includes improvements to substitution: Part of drawback for manufacturers is the concept of substitution, which stipulates that when merchandise that’s “commercially interchangeable” with imported merchandise upon which a duty, tax or fee is levied is ultimately exported or destroyed, the exporter can claim drawback on those goods they imported. The issue is that qualifying such goods for drawback to U.S. Customs and Border Protection (CBP) is an extremely onerous, subjective process. The new drawback provisions make the concept of “commercial interchangeability” an objective matter by basing this assessment on where each imported or exported merchandise falls on the globally-accepted Harmonized Tariff Schedule of the U.S., eliminating the need for subjective interpretation on the part of CBP.Bottling Process

3. Shorter time frames: Typically drawback requires rulings and approvals prior to filing claims, but the new statute would eliminate the 6-12 month wait time that usually separates the request for approval for drawback and the date the first claim can be filed. This means companies claiming drawback can get their money quicker.

4. More time to file: Under the new statute, time frames will be simplified so instead of allowing drawback on only imported goods that were exported within three years of importation, companies can expand that time limit to five years. This would take off some of the pressure, and alleviate some of the recordkeeping burden on both CBP and on drawback claimants.

H.R. 644 is a solid bill with lots of pro-export, pro-manufacturing provisions, which is why SPI advocated for it. If the administrative hurdles, confusing time frames and arcane details have kept your company from taking advantage of duty drawback, now might be the time to take a second look.