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Researched by Industrial Info Resources (Sugar Land, Texas)--Following the easing of pandemic-driven lockdowns across the U.S., drivers began to hit the road again, particularly those at the helm of commercial trucks as businesses reopened and factories restarted. But that trend was fueled by another one that has accelerated since the lockdowns abated: product packaging, especially for household goods and medical supplies. Both trends necessitate plastic and rubber products, which still are struggling to recover from supply chain disruptions. Industrial Info is tracking $2.8 billion worth of plastic and rubber product projects nearing or under construction across the U.S., the bulk of which cater to the automotive and packaging/container markets.
Click on the image at right for a heat map of plastic and rubber product investments nearing or under construction across the U.S., from Industrial Info's Geolocator tool.
The global surge in the COVID-19 Delta variant has slowed production of automotive components, which already had been a major headache for U.S.-based automakers throughout 2020 and early 2021. Automakers are citing shortages of plastic, glass and wiring components, particularly those shipped from Asian countries where the Delta variant is doing some of its worst damage, according to the Associated Press. This trend has created a major opening for domestic parts suppliers, including those headquartered overseas.
Alabama is one of the biggest beneficiaries of the growing need for auto parts. In the Huntsville area alone, multiple companies are building facilities to supply the Mazda Toyota Manufacturing USA (MTMUS) assembly plant, which is expected to produce up to 300,000 vehicles annually. DaikyoNishikawa Corporation (Hiroshima, Japan) began constructing a $110 million parts plant near the MTMUS complex in the summer of 2019, and Vuteq Corporation (Toyota City, Japan) began work on a $60 million parts plant nearby toward the end of 2019. Both projects are expected to wrap up toward the end of 2021. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed reports on the DaikyoNishikawa and Vuteq projects.
One auto-related sector that has seen solid improvement in recent months is the tire market. Commercial trucks have been in high demand since the COVID-related lockdowns eased, and the need for truck tires designed for regional use is almost on par with the need for long-haul tires. "This has not been seen in the U.S. market in recent memory," Tom Fanning, the head of the U.S. truck tire market for Continental (Hanover, Germany), recently told Fleet Owner. "As soon as the next five to 10 years, regional tire shipments are expected to eclipse long-haul volumes."
BFGoodrich, a subsidiary of Michelin (Clermont-Ferrand, France), is at work on a $100 million expansion of its tire plant in Woodburn, Indiana. Michelin also recently kicked off a $100 million expansion at a tire plant in Greenville, South Carolina; both are expected to increase production through improvements in equipment and efficiency. Subscribers can learn more from Industrial Info's reports on the Woodburn and Greenville projects.
Packaging, Home Products Give Big Jolt to Sector
Another side effect to the COVID-19 pandemic is the skyrocketing demand for flexible packaging, especially in the Food & Beverage and Pharmaceutical industries. The need for polyester film, which is among the most durable lightweight plastics, is growing across multiple industries, and Polyplex Corporation Limited (Noida, India) is answering the call with a $90.6 million debottlenecking and expansion of its plant in Decatur, Alabama, while Pregis Corporation (Deerfield, Illinois) is at work on an $80 million renovation of its blown film extrusion plant in Anderson, South Carolina; the blown film extrusion process is used to produce commodity and specialized polymer films. Subscribers can learn more from Industrial Info's reports on the Decatur and Anderson projects.
It comes as no surprise that rubber gloves have been in high demand since early 2020, and Rhino Health Incorporated (Church Rock, New Mexico) is working with Jungwoo Company Limited (Hwaseong, South Korea) to build an $80 million nitrile glove manufacturing plant in Fort Worth, Texas. Nitrile gloves, which are made of synthetic rubber, are used frequently in sensitive medical environments, including hospitals, as well as in chemical production and hazardous-material handling. Subscribers can learn more from Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a heat map of plastic and rubber product investments nearing or under construction across the U.S., from Industrial Info's Geolocator tool.The global surge in the COVID-19 Delta variant has slowed production of automotive components, which already had been a major headache for U.S.-based automakers throughout 2020 and early 2021. Automakers are citing shortages of plastic, glass and wiring components, particularly those shipped from Asian countries where the Delta variant is doing some of its worst damage, according to the Associated Press. This trend has created a major opening for domestic parts suppliers, including those headquartered overseas.
Alabama is one of the biggest beneficiaries of the growing need for auto parts. In the Huntsville area alone, multiple companies are building facilities to supply the Mazda Toyota Manufacturing USA (MTMUS) assembly plant, which is expected to produce up to 300,000 vehicles annually. DaikyoNishikawa Corporation (Hiroshima, Japan) began constructing a $110 million parts plant near the MTMUS complex in the summer of 2019, and Vuteq Corporation (Toyota City, Japan) began work on a $60 million parts plant nearby toward the end of 2019. Both projects are expected to wrap up toward the end of 2021. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed reports on the DaikyoNishikawa and Vuteq projects.
One auto-related sector that has seen solid improvement in recent months is the tire market. Commercial trucks have been in high demand since the COVID-related lockdowns eased, and the need for truck tires designed for regional use is almost on par with the need for long-haul tires. "This has not been seen in the U.S. market in recent memory," Tom Fanning, the head of the U.S. truck tire market for Continental (Hanover, Germany), recently told Fleet Owner. "As soon as the next five to 10 years, regional tire shipments are expected to eclipse long-haul volumes."
BFGoodrich, a subsidiary of Michelin (Clermont-Ferrand, France), is at work on a $100 million expansion of its tire plant in Woodburn, Indiana. Michelin also recently kicked off a $100 million expansion at a tire plant in Greenville, South Carolina; both are expected to increase production through improvements in equipment and efficiency. Subscribers can learn more from Industrial Info's reports on the Woodburn and Greenville projects.
Packaging, Home Products Give Big Jolt to Sector
Another side effect to the COVID-19 pandemic is the skyrocketing demand for flexible packaging, especially in the Food & Beverage and Pharmaceutical industries. The need for polyester film, which is among the most durable lightweight plastics, is growing across multiple industries, and Polyplex Corporation Limited (Noida, India) is answering the call with a $90.6 million debottlenecking and expansion of its plant in Decatur, Alabama, while Pregis Corporation (Deerfield, Illinois) is at work on an $80 million renovation of its blown film extrusion plant in Anderson, South Carolina; the blown film extrusion process is used to produce commodity and specialized polymer films. Subscribers can learn more from Industrial Info's reports on the Decatur and Anderson projects.
It comes as no surprise that rubber gloves have been in high demand since early 2020, and Rhino Health Incorporated (Church Rock, New Mexico) is working with Jungwoo Company Limited (Hwaseong, South Korea) to build an $80 million nitrile glove manufacturing plant in Fort Worth, Texas. Nitrile gloves, which are made of synthetic rubber, are used frequently in sensitive medical environments, including hospitals, as well as in chemical production and hazardous-material handling. Subscribers can learn more from Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
