PLASTICS CUSTOM RESEARCH SERVICES
695 Burton Road
Advance, NC 27006
INDUSTRIAL THERMOFORMING: WHERE IT’S BEEN, WHERE IT’S HEADED
PCRS has researched and published studies of the North American industrial thermoforming business
in 1995, 1998, 2001 and 2004. Over the period November 2008-January 2009 we revisited this
business to determine how the unfolding domestic and global economic crisis is impacting this
business and what strategies the processors in this field are adopting to survive the difficult conditions
likely to obtain in the major markets they serve.
Our earlier research indicated that whereas the regional industrial thermoformers enjoyed vigorous
growth in the second half of the 1990s, the growth dynamic in this business stalled from 2000 to 2003,
during which period the U.S. economy experienced a recession. Sales of industrial thermoformed
output rebounded strongly in 2004. Yet the annual pace of sales growth decelerated steadily from that
point until 2008 when total industry sales declined. The average annual growth rate in sales terms from
2003 to 2008 was 3.9%. When one figures in the increase in the processors’ cost structure –
particularly the soaring cost of resins that go into heavy-gauge sheet – the conclusion one draws is that
there has been no real growth in this sector of the plastics processing business over this 5-year period.
Several factors combined to create the difficult market conditions industrial thermoformers confronted
in recent years. The demand for plastic parts and products of all types deteriorated in many of their
major markets. U.S. sales of cars and light trucks have been trending downwards since 2000. The low
interest rate regime introduced in reaction to the 2001 recession restored economic growth, yet it
contributed to the housing bubble that began to burst in 2006. Meanwhile much of U.S. manufacturing
has relocated offshore to take advantage of low labor costs in China and other developing countries.
The industrial thermoformers also experienced loss of market share to alternative plastics processors.
The erosion of U.S. manufacturing due to foreign outsourcing was felt particularly keenly by domestic
injection molders. Faced with costly excess capacity, they began bidding for part programs marked by
lower volumes of production. This brought them into direct competition with the industrial
thermoformers. With the twin competitive advantages of available capacity and lower Chinese-origin
tooling the injection molders succeeded infringing on the industrial thermoformers’ traditional market
space. Officials we interviewed noted they confront today similar competitive challenges from other
plastics processors such as blow molders, composite processors, and rotomolders.
Several officials interviewed suggested explicitly or implicitly that their strategy for the near-term
future is geared to simply surviving the current economic downturn. Yet the more progressive
companies are seizing on this cyclical downturn to transform their operations. They are exploring new
sheet materials and investing in modern machinery with leading-edge technologies that will permit
them to compete for new product introductions. When the three regional economies recover in
response to massive planned fiscal stimuli in addition to monetary stimuli already in place, these
companies will be in a position to participate in those markets most likely to benefit.
FEBRUARY 2009
TABLE OF CONTENTS
INTRODUCTION
EXECUTIVE SUMMARY
PART I – THE EVOLVING INDUSTRIAL THERMOFORMING BUSINESS
Defining the Industrial Thermoforming Business
The Number of North American Companies with Captive, Custom and Proprietary Industrial Thermoforming
Operations
The Recent and Likely Future Pattern of Corporate Consolidation in Industrial Thermoforming
The Hierarchy of Regional Industrial Thermoformers
The Economics of Industrial Thermoforming: The Distribution of Companies by Size of Operations
PART II: THE RECENT PATTERN OF GROWTH IN THE VALUE AND VOLUME OF
INDUSTRIAL THERMOFORMED OUTPUT
The Recent Trend in the Value of Industrial Thermoformed Output
The Recent Trend in the Distribution of Sales Growth among the Industrial Thermoformers
A Summary of Actual and Anticipated Sales Growth, 2007-2009
The Recent Trend in the Volume of Industrial Thermoformed Output
The Recent Trend of Heavy-gauge Sheet Pricing
The Recent Trend of Investment in Industrial Thermoforming Machinery
PART III: MAJOR INDUSTRIAL THERMOFORMING MARKETS
The Current Status of Major Industrial Thermoforming Markets
Agricultural Equipment
Aircraft
Appliances
Automotive
Building and Construction
Electronic and Medical Equipment
Heavy Trucks
Marine
Mass Transit
Materials Handling
Recreational Vehicles
Signs and Displays
Opportunities for Industrial Thermoformers in Niche Markets
Alternative Energy
High-performance Sheet
Specialty Vehicles
Market Conditions in the Various Regions of the North American Economies
The Growing Competition from Alternative Plastics Processors in Industrial Thermoforming Markets
PART IV; THE RECENT PATTERN OF TECHNOLOGICAL CHANGE IN INDUSTRIAL
THERMOFORMING
The Status of Established Innovations
Twin-sheet Forming
Thermoplastic Olefin (TPO) Sheet
Paint Film
The Status of More Recent Innovations
Processing Material Innovations
Sheetless Thermoforming
Plastic Sheet Material Innovations
Bioplastics
Composite Sheet
High-performance Sheet
Nanomaterials
PART V: PERSPECTIVES FROM THE INDUSTRIAL THERMOFORMING SUPPLY BASE
Forming Machine Suppliers
Heavy-gauge Sheet Suppliers
Thermoforming Consultants
PART VI: THE PCRS SURVEY OF INDUSTRIAL THERMOFORMERS
Able Manufacturing & Assembly
Acrylon Plastics
Allied Plastics
Apogee Designs
Arrowhead Plastic Engineering
Brentwood Industries
CSL Plastics
Complete Plastic Fabricators
Conrad Manufacturing Company
Duo-Form Plastics
East Iowa Plastics
Empire West
Formco Plastics
Formed Plastics
Fox Lite
Freetech Plastics
General Plastics
GeoTex
Gregstrom Corporation
Hagans Plastics Company
Hampel Corporation
Hill Plastics
Homeland Vinyl Products
IPR Automation – Sohner Plastics
I-Plus
Indiana Vacform
Industrial Thermoform
JP Plastics
Jarden Plastic Solutions
KFP Corporation
Kal Plastics
120 Pages
McClarin Plastics
Mechanical Enterprises
Meyer Plastics
PFC Systems
PFI Vacuum Forming
Paradise, Inc.
Paragon Plastics
Penda Corporation/Durakon Industries
Plastic Fabricating
Plastics Design & Manufacturing
Plastik MP
PolyJohn Enterprises Corporation
PolyPortables
Profile Plastics
SF Technology
STK LLC
Saint-Gobain Performance Plastics
Shamrock Plastics
Soroc Products
Specialty Manufacturing
Spray Control Systems
Thermoforme LR
Thermopro
Trans Form Plastics
Travel Star Plastics
Usheco
Vistar Technologies
Welch Fluorocarbon
Western Wisconsin Plastics
Wilbert, Inc.
6 Tables
11 Figures
ABOUT THE AUTHOR
Dr. Peter J. Mooney is the founder and president of Plastics Custom Research Services. Dr. Mooney holds a Ph.D. in
economics from the University of North Carolina, and he has covered the plastics industry as a technical/economic market
research analyst and consultant since 1981. He is a member of several plastics industry associations such as the Society of
the Plastics Industry, the Society of Plastics Engineers, the Society of Manufacturing Engineers, SAMPE, and the
Association of Rotational Molders. He has researched and written over 75 multi-client reports, as well as over 75 singleclient reports, in the field of plastics and related industries. He has also organized, chaired, and made presentations to
numerous conferences on critical issues facing the global plastics industry.
ABOUT PLASTICS CUSTOM RESEARCH SERVICES
Plastics Custom Research Services was formed in 1993 in response to the growing demand for accurate and insightful
market research tailored to the evolving needs of plastic industry participants. PCRS is able to utilize research methods
developed through over 25 years of experience in this field - methods that yield cost-effective and timely data and insights
of relevance to the product and service offerings of the plastics industry. These research methods include telephone-based
and in-person surveys of key decision-making officials in the field, as well as hard-copy and electronic searches of trade
literature and patents. Research findings, conclusions and recommendations are provided in written and oral reporting
formats. PCRS also researches and publishes multi-client Plastics Industry Reports, dealing with subjects that are part of its
core competencies and that have relevance to a wide range of plastics industry operatives.
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695 Burton Road
Advance, NC 27006
Telephone #: (336) 998-8004
Email: Plasres@AOL.com
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Website: www.plasres.com
PLASTICS CUSTOM RESEARCH SERVICES
695 Burton Road
Advance, NC 27006
Phone: (336) 998-8004
Fax: (336) 998-8044
Email: PlasRes@AOL.com
SPECIAL ORDER FORM FOR
INDUSTRIAL THERMOFORMERS
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I would like to order a copy of “Industrial Thermoforming: Where It’s Been,
Where It’s Headed” at $975.00
$_______________
I would also like to order _____ additional copies of this report at $400.00 each
$_______________
Total cost of reports ordered
Shipping (Priority Mail-$8.00;Fedex overnight-$35.00)
TOTAL AMOUNT PAYABLE
$_______________
$_______________
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Check enclosed _______________
Please bill me; purchase order # ____________________
Signature____________________________
Name_______________________________
Company____________________________
Address_____________________________
City________________________________
Telephone #__________________________
Date_______________________
Title______________________________________
Division___________________________________
State__________ Zip______________________
Fax #_____________________________________
Please Mail or Fax this Form to:
Plastics Custom Research Services
695 Burton Road
Advance, NC 27006
Telephone #: (336) 998-8004
Fax #: (336) 998-8044
Email: Plasres@AOL.com Website: www.plasres.com