Plastics professionals from every part of the plastics value chain should mark November 4-6, 2013 on their calendars to be certain they don’t miss the just-announced inaugural Global Plastics Summit at the Hyatt Regency Hotel in Chicago. Hosted collaboratively by SPI: The Plastics Industry Trade Association, and IHS, the global source of information and analytics regarding the global chemical industry, the Global Plastics Summit will bring together decision makers, thought leaders, and technical experts from across the plastics industry, oil and gas, all areas of American manufacturing, and the experts from IHS and SPI.

The SPI/IHS Global Plastics Summit, will be held November 4-6, 2013, in Chicago, Illinois

During the Summit’s three days, those leaders will share their insights on the market outlook for key polymer and raw materials, technical and product developments, innovations, challenges, and the opportunities facing the dynamic plastics industry, all the issues that impact plastic producers, converters, distributors and all related industry professionals.

“The abundant feedstock of shale gas is changing the global landscape for plastics manufacturing,” said William R. “Bill” Carteaux, president and chief executive officer of SPI. “It’s critical that America’s manufacturing leaders share their insights on how today’s evolving supply chain, reshoring trends and growing consumer demands for cleaner, greener manufacturing are changing our core business models.”

“As the industry leader in delivering the world’s most comprehensive chemical insight, market information, and consulting services, IHS is pleased to partner with such a respected organization as SPI in order to offer this event to the industry,” said Dave Witte, senior vice president and general manager of IHS Chemical.

“Our combined practical industry knowledge and insight, makes it possible for us to build a stimulating, timely and strategic program to help America’s manufacturers reposition their companies for the future,” said Carteaux. “Plastics manufacturers must understand these developments in order to capture new opportunities in both domestic and international markets.”

Carteaux also noted that solution-oriented workshops will hone in on manufacturing innovation, best practices and emerging new markets across the supply chain. “We’ll be asking participants to think beyond keynotes and get something done,” says Carteaux.

“The U.S. plastics industry is on the cusp of the next wave of domestic expansion,” said Nick Vafiadis, senior director of global polyolefins and plastics at IHS Chemical. “U.S. plastics manufacturers are becoming global suppliers at a level we’ve never seen before. These are interesting and exciting times for producers and this event will be an unparalleled, collaborative experience.”

To this long-time observer of the American plastics industry, the Global Plastics Summit is exceptionally well timed to clarify the issues and impacts of America’s abundant shale gas on plastic materials producers and processors, as well as on the brand owners who rely on plastics to manufacture their products or to make the packaging for their products, or both.

SPI recently created its Brand Owners Council in recognition of the critical position brand owners occupy in the plastics value chain. SPI’s existing Councils include the Processors Council, the Material Suppliers Council, and the Equipment and Machinery Council. Dealing with key issues such as zero waste, sustainability, and product safety, brand owners will be highly interested in participation at the Global Plastics Summit.

Plastics professionals, including brand owners who rely on plastics, should not miss the chance to chart their business future at the first Global Plastics Summit in Chicago, November 4-6, 2013. More information can be found at www.GlobalPlasticsSummit.com, and a full agenda and registration details will be forthcoming as the event draws near.

“From resin suppliers and equipment makers to processors and brand owners, SPI is proud to represent all facets of the U.S. plastics industry,” Bill Carteaux said. “Our most recent economic reports show that the plastics industry as a whole is resilient, and has come through the recession significantly better than other U.S. manufacturing sectors.”

For the first time at an ANTEC, The Society of Plastics Engineers’ amazing annual gathering of the plastics technologies, there also will be an exceptional learning experience for those from the business side of plastics industry companies: SPI’s Business of Plastics Conference.

SPI’s Business of Plastics Conference will be held during SPE’s ANTEC 2013 in Cincinnati.

ANTEC 2013 takes place from April 22^nd to April 24^th at the Duke Energy Convention Center in Cincinnati, OH. SPI’s Business of Plastics Conference will happen on April 22^nd and 23^rd within the Convention Center.

The content of the Business Conference includes presentations on multiple vital issues facing the plastics value chain now, and more info is below. But first, people from the business side of plastics need to know that this conference is a not-to-be missed bargain. Register prior to April 12 and the cost is only $75. (I thought 75 bucks was a typo the first time I saw it.)

Second, that cost includes admission to all ANTEC open events, such as the four notable and knowledgeable keynote speakers. That’s not all: The admission also gives you full access to the exhibit floor and the 100 exhibitor displays.

The full SPI Business of Plastics Conference program is on the ANTEC website. It’s worth noting that the content is structured to inform plastics industry execs and professionals, as you would expect, but also to inform managers and specialists in companies that use plastics to add value to their brands.

Business of Plastics Conference topics include:

• Analysis of plastics industry global/international issues,
• Update on market sectors and issues, e.g. material costs, sustainability,
• Recycling report on regulatory, environmental and social factors,
• Identifying and hiring the talent for critical jobs,
• How to create online connections with customers/prospects—social media,
• Individual sessions on automotive innovations and packaging practices,

A lot of learning is packed into those two days, as well as time for networking. The second day ends early to let you explore the exhibits. All in all, it’s a very efficient use of time for professionals on the business side of a plastics company.

There is more info and easy registration for SPI’s Business of Plastics Conference at the ANTEC 2013 website. The Business of Plastics Conference is sponsored by Plastics Business magazine.

An October 11^th article in the Wall Street Journal (WSJ; subscription publication) gave extensive coverage to how toymaker K’Nex Brands, one part of SPI member company Rodon Group (Hatfield, PA), has returned production of most of its plastic construction toys from China to its Pennsylvania factory, and why it did so.

Last November 30th, President Obama chose Rodon Group/K’Nex to speak about U.S. manufacturing.

Joel Glickman, chairman of K’Nex and the custom plastics molding business of the Rodon Group told the Journal, “In the long term, it’s much better for us to manufacture here.” The reasons why are several. For one, K’Nex says it can react faster to shifts in demand for various toys. For another, it gives better control over materials and quality, a vital factor relative to safety issues.

K’Nex also reshored production to the U.S. due to the rising cost of labor and transportation within China. However, K’Nex said that, so far, it has not found it possible to produce 100% U.S.-made toys, which is its goal. The decline in American manufacturing that took off during the nineties shrunk the overall number of American suppliers notably, whereas China now has a nearly limitless number and variety of supplier companies.

K’Nex still imports small battery-powered motors for its toys because it can’t find a competitive U.S. supplier. Michael Araten, the CEO of K’Nex, told the Journal, “In China, you can go over with just a drawing and say, ‘I need a million of these.” And that has had a huge effect: In 2012, China’s exports of toys, games and sporting goods was worth $33.5 billion, which is about three times what America exported in those sectors.

Although the WSJ article focused on the K’Nex toy business, it also gave a well deserved shout-out to the custom molding Rodon side of the business. When the U.S. economy cratered in 2008, demand for the company’s products fell sharply, and there was not enough work for the workers. Wanting to avoid major layoffs, the Glickman family, which owns both K’Nex and Rodon, decided to move production back to Pennsylvania.

They were confident Rodon’s well developed, highly automated plastics production technologies would result in competitive costs, despite higher U.S. labor costs for needed manual assembly. Further, to lower that assembly cost certain toys were modified. For example, roller-coaster tracks that were put together in China with hand-inserted pins, were redesigned to snap together.

Added to its plastics manufacturing expertise that could enable competition with China, Rodon had another major, though intangible, resource. Let’s call it Attitude, with a capital A. The Journal article says Rodon’s slogan is “Cheaper than China.” But it’s not just a slogan, it’s an attitude.

The image on the left is prominent on the home page of Rodon’s website, and the “We Beat China Pricing” message is on display around the rest of the website, as well as around the 260,000-ft2 Hatfield production facility. That kind of competitive, winning attitude is what coaches work hard to instill in their teams, and business, as many have noted, is very much a team sport.

Video spotlight on Rodon’s custom injection molding capability…

It with great sadness that I inform you today that attorney Jerome Heckman, a legend in our industry, passed away last night. SPI’s association with Jerry Heckman spans nearly 60 years. His law firm, Keller and Heckman, continues as counsel to SPI today.

Jerry Heckman had a tremendous impact on the plastics industry, and will be remembered as one of the most influential people our industry has ever known. His work with resin manufacturers, processors, regulatory agencies and legislators is responsible for much of the growth that several sectors of our industry have enjoyed over the last 50 years.

Jerry began work for SPI in1954 when Federal Communications Commission rules threatened to impact the use of radio frequency heating used in the plastics industry

at that time. In the later part of the 1950s, Heckman’s work for SPI began to involve ever more issues concerning plastics packaging materials and Food & Drug Administration regulations. He was instrumental in the formation of SPI’s Food Drug & Cosmetic Packaging Committee in 1957.

 Jerry Heckman’s tremendous service to the plastics industry has not gone unrecognized. He was inducted into the Plastics Hall of Fame in 1986. He received the first Bradbury award for    outstanding contributions to the plastics packaging industry from  the SPI Color Additives and Compounders Division in 2000. That  same year, the FDA’s Center for Food Safety and Applied Nutrition  awarded Jerry the Directors Special Citation Award. In 2007 he  was inducted into the Packaging Industry’s Hall of Fame.

Looking to the future, Jerry had great optimism for our industry. In 2012, in a letter congratulating SPI on

our 75th anniversary, he seemed to pass the torch to all of us to continue on a path of innovation and growth for the industry he served so faithfully:

“I am grateful for the opportunity I have had to contribute since I started in 1954. It’s been a challenging trip walking through the years with you and helping where I could. Now SPI and the new generation of plasticians can take up the cause and fill the world marketplace with the results of new breakthroughs and progress. We came, we saw, and we did our very best, but now it’s your turn to make the future even brighter…”

Jerry Heckman will be missed and his service to the plastics industry should be celebrated.

A recent radio broadcast shows that the word indeed is getting out: The plastics business continues its rebound from recession, as does the auto sector and overall U.S. manufacturing. The feature titled “It’s Not Just Steel Springing Back” features an interview with SPI President Bill Carteaux. And in addition, reporter Brian Bull of Ideastream, which includes two public radio stations in Northeast Ohio, visited a busy plastics manufacturing shop in the area.

In the broadcast, which you can listen to here, Bryan Osborne, VP of sales & marketing for injection molder/manufacturer Venture Plastics, Inc. (Newton Falls, OH), tells listeners that “…about 50 percent of a car is plastics today,” and that demand for more fuel-efficient vehicles is behind the increase.

Venture Plastics is busy working for the auto and several other sectors. (Photo: Brian Bull, Ideastream)

“That includes under the engine, manifolds, fuel rails, throttle bodies; your entire interior now is mainly plastic. In fact, all of your chrome parts on a vehicle are actually plastic parts that get chromed, they’re not metal,” Osborne added. Bull had learned that by chance when he tried to put a magnetic sticker on his car. It took several tries before he found a place it would stay attached.

Venture Plastics is a diversified manufacturer of plastic products and components, serving markets such as industrial, consumer, major appliances, communications, fuel delivery, and agriculture, as well as automotive.

When Bull interviewed Bill Carteaux, the president of SPI: The Plastics Industry Trade Association, made it clear that plastics tend to be a leading indicator of the overall economy, including automotive, but beyond that virtually all other sectors. “We certainly started to see things slowing down in 2008, and 2009 was horrible,” said Carteaux. “But from `09-10, overall plastic shipments in this country were up about five percent. We went from $320 billion to $341 billion in shipments.”

Taking the energy sector as an example, Carteaux said it is is helping the plastics industry in a number of ways: wind turbines, fuel cells, and solar cells all use

plastic, and natural gas drilling uses durable, corrosion resistant polyethylene pipe for gas transmission and other uses. Noting that sales have climbed since the end of the recession, including a 30% gain last year, he said, “We’ll continue to see some nice gains as we continue to get the shale gas that’s out there today.”

America’s manufacturing revival, aided by the reshoring of work from other countries, is growing, along with materials such as plastics, aluminum and titanium. The report says that, though they “…may not evoke the same gritty, Rust Belt romanticism that steel does, they are also beneficiaries of a revived manufacturing base.” Though many people would agree with that, the reality is that plastics, as well as those two metals, have been major factors in the Rust Belt economy for decades, although strictly speaking, they don’t rust.