The U.S. Plastics Industry and Southeast Asia – Feedstocks and Trade

The U.S. Plastics Industry and Southeast

Asia – Feedstocks and Trade

Presented By:

Michael D. Taylor

Vice President, International Affairs and Trade

Jakarta, Indonesia

November 11-12, 2015

Agenda

Background on SPI

Overview of U.S. Plastics Industry

Shale Gas as a Game Changer

Natural Gas in Southeast Asia

The U.S. Plastics Industry and Trade

U.S. Plastics Industry Trade with Southeast Asia

Q&A

SPI Is The Only U.S. Trade

Association Representing ALL

Segments Of The Plastics Industry

The U.S. Plastics Industry

In 2014…

• 3rd largest industry in U.S.

• Record-breaking domestic demand

Up 6.0% to $298.3 billion

• Shipped more than $427.3 billion in goods

• Employed 940,000 people

• Operated 16,806 facilities in every U.S. state

U.S. Demand For Plastics Sets

New High Level

$0

$50

$100

$150

$200

$250

$300

$350

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ in b

illio

ns

Machinery Molds Plastic Products Resin

Apparent Consumption = Shipments + Imports – Exports

Source: SPI “Global Business Trends” (2015)

Plastics Have Historically Grown

Faster Than All Manufacturing

Comparative Growth Rates 1980 - 2014

Plastics

Mfg All Mfg

Employment 0.3% -1.3%

Real Shipments 2.6% 0.8%

Real Value Added 2.3% 0.8%

Productivity Growth 2.3% 2.1%

• Plastics manufacturing

employment grew 0.3 percent

per year since 1980

• The value of manufactured

shipments grew by 2.6

percent per year since 1980

• Productivity grew by 2.3

percent per year since 1980

Source: SPI “Size and Impact of the U.S. Plastics Industry” (2015)

Game Changers Could Raise

U.S. GDP By 2020

Sectors Potentially Affected By

Game Changers

Natural Gas Prices Have

Decoupled From Oil Prices

Key To North American

Petrochemical Competitiveness

Announced and Expected

Plastics Industry Investment

Source: American Chemistry Council

Anticipated Wave Of Plastics

Industry Investment By Segment

Source: American Chemistry Council

Shale Energy: Economic

Contribution To Manufacturing

2012 2015 2020 2025

Employment

Total Manufacturing 303,383 395,298 464,897 522,798

Aluminum 1,171 1,484 1,558 1,693

Steel 19,978 23,610 23,460 26,242

Plastics* 8,974 12,878 14,948 16,438

Fertilizers 506 899 4,851 5,805

Value Added ($M)


Aluminum 147 189 204 223

Steel 3,166 3,704 3,619 4,024

Plastics* 768 1,098 1,282 1,414

Fertilizers 75 131 688 822

Labor Income ($M)


Aluminum 101 130 140 153

Steel 2,105 2,455 2,389 2,658

Plastics* 523 739 868 961

Fertilizers 50 88 460 550

Economic Contribution Summary

Includes NAICS Code 3261 (plastics); does not include rubber (3262) or resins (3252).

Source: IHS

Added Industrial Production As A

Result Of Shale Energy Development

Source: IHS

2.2%

1.7%

1.5%

1.5%

1.4%

1.2%

1.2%

1.0%

0.4%

1.3%

Iron and Steel Products

Resins and SyntheticMaterials

Basic Organic Chemicals

Plastics and RubberProducts

Fabricated Metal Products

Agricultural Metals

Nonmetalic Minerals

Petroleum and CoalProducts

Machinery

Total Manufacturing Average

2012

6.7%

6.0%

7.1%

4.1%

3.2%

6.9%

3.5%

5.8%

3.3%

3.5%

2020

7.4%

8.1%

9.5%

4.6%

4.8%

7.7%

4.1%

6.5%

4.0%

3.9%

2025

World National Gas Production

Gas Supply Growth By Region

From 2010 To 2040

Top Five Asia-Pacific Natural

Gas Reserve Holders

Southeast Asia Energy Outlook

Positive

trade balance

of $10.4 billion

$51.7B PLASTICS 7.7%

2014 Trade Statistics

In 2014, the U.S. plastics industry exported goods valued at $62.1 billion, up 3.1

percent from 2013

$35.1B RESINS 1.8%

$25.0B PRODUCTS 5.1%

$528.3M MOLDS 10.1%

$1.5B MACHINERY 7.7%

Source: SPI Global Business Trends 2015

Top Industry Export Markets

$0

$5

$10

$15

$20

$25

$30

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

U.S

. $

Bill

ion

s

Mexico Canada China Belgium Brazil All Others

Top Plastics Industry

Export Markets 2014

All Others $23.5 billion

Mexico $15.8 billion

Canada $13.2 billion

China $5.2 billion

Belgium $2.4 billion

Brazil $2.1 billion

Total $62.1 billion


Opening Markets To The U.S.

Plastics Industry

Trans-Pacific Partnership (TPP)

• 2014: U.S. plastics

industry exports to the 11

TPP countries were more

than $34B

• Since 2000: plastics

exports to TPP countries

increased more than 91%

• 2014: plastics industry

trade surplus with TPP

countries was $13.7B

Transatlantic Trade & Investment Partnership (TTIP)

• A high-standard TTIP

would advance trade and

investment liberalization

and address regulatory

and other non-tariff

barriers

• Based on 2011 trade

flows, the U.S. plastics

industry would be one of

the top benefiting sectors

with a total potential tariff

savings of $465M

Signed now goes

to Congress

11th Round

Miami Oct 19-23

-10

-5

0

5

10

15

20

25

2000 2002 2004 2006 2008 2010 2012 2014

Resins Plastic Products Molds Machinery

U.S. Plastics Industry Trade

Balance By Segment 2000-2014


Billions of U.S. Dollars

-2

0

2

4

6

8

10

12

2000 2002 2004 2006 2008 2010 2012 2014

Resins Plastic Products Molds Machinery

U.S. Plastics Industry Trade

Balance By Segment For FTA

Partners 2000-2014


Billions of U.S. Dollars

U.S. Plastics Industry Exports To

ASEAN Countries 2000-2014

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,0002

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Singapore Thailand Malaysia Indonesia Vietnam Philippines

U.S

. $

Mill

ions

U.S. Plastics Industry Exports To


0

100

200

300

400

500

6002

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Thailand Malaysia Indonesia Vietnam Philippines

U.S

. $

Mill

ions

U.S. Plastic Resin Exports To


0

200

400

600

800

1,000

1,200

1,4002

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Singapore Thailand Indonesia Vietnam Malaysia Philippines

U.S

. $

Mill

ions

U.S. Plastic Products Exports To


0

100

200

300

400

500

6002

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Singapore Malaysia Thailand Philippines Indonesia Vietnam

U.S

. $

Mill

ions

U.S. Plastic Industry Imports

From ASEAN Countries

2000-2014

0

100

200

300

400

500

600

7002

000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

20

12

2013

2014

Thailand Singapore Malaysia Vietnam

Indonesia Philippines Cambodia

U.S

. $

Mill

ions

Thank You!

谢谢 Merci Vielen Dank

Grazie ありがとうございました 감사합니다

Obrigado Спасибо Gracias Teşekkürler

Questions & Answers

Michael Taylor

[email protected]

202-974-5232

mailto:[email protected]