PLASTICS CUSTOM RESEARCH SERVICES
695 Burton Road
Advance, NC 27006
Phone: (336) 998-8004
Fax: (336) 998-8044
NEW GROWTH DYNAMICS IN COMPRESSION MOLDING
Compression molding was one of the original plastics processing methods developed at the dawn of the
commercial plastics industry. The objective was to produce light-weight, structurally strong, creatively
designed plastic parts that could replace parts made from the traditional engineering materials – metals
(steel, aluminum et al.), wood, ceramics and porcelain. As the inherent cost/performance advantages of
this process gained acceptance in the marketplace, the resins in the compression molders’ repertoire
gradually expanded – from the early thermoset resins (phenolic, epoxy, melamine and urea) to
unsaturated polyester (the ideal material for glass fiber-reinforced composite parts). With the
development of polyethylene and polypropylene in the 1950s, the compression molding process was
modified to accommodate these low-cost commodity thermoplastics as well.
Yet as the North American economy grew and the demand for engineering materials grew accordingly,
manufacturing industry OEMs increasingly sought fast-cycling plastic materials and processing
methods to accommodate their mass-production methods. Compression molding and other thermoset
processing methods fell into disfavor whereas the shares of thermoplastics molding methods advanced.
The compression molding business underwent massive corporate consolidation as players determined
to remain in the business sought economies of scale. By 2000 the number of companies with
compression molding operations had been drastically reduced, many long-term players in machinery
manufacturing had exited the business, and the share of compression molding in total plastics
production ebbed close to 1%. Then came the recession of 2001 and the events of 9/11, and the
compression molders, like all other plastics processors, experienced a further production downturn.
Since 2001, however, there has been a veritable renaissance of the compression molding business,
driven by a range of domestic and global economic exigencies. Energy pricing has soared, and with it
the cost of resins. The impact on thermoset resin pricing has been more benign relative to the pricing of
thermoplastics. Moreover, compression molding has been “rediscovered” as a highly cost-effective
production process with low-cost molds and low-maintenance machinery. The car and heavy truck
OEMs are intensifying their search for light-weight materials to produce exterior, interior and underthe-hood parts to enhance vehicle fuel efficiency. Builders and home-owners are converting from steel
to light-weight and creative composite-skinned exterior residential doors. And although much of the
domestic electrical component and electronic equipment industries has gone offshore, the domestic
OEMs continue to regard compression molding as a critical component of their operations..
This report distills data and insights gathered from a telephone-based survey of over 100 companies
involved on the supply and demand sides of the compression molding business. It provides a detailed,
balanced, and realistic perspective on the opportunities and the challenges that the compression
molders and the companies on their material/machinery/mold supply chain confront - today and into
the near-term future.
Publication: November 2005
TABLE OF CONTENTS
INTRODUCTION
EXECUTIVE SUMMARY
PART I: AN OVERVIEW OF THE COMPRESSION MOLDING BUSINESS: CURRENT AND
LIKELY FUTURE OPPORTUNITIES AND CHALLENGES
Inter-material Competition: Plastics vs. Steel and Other Non-plastic Engineering Materials
Inter-material Competition: Thermosets vs. Thermoplastics
Inter-material Competition: Glass vs. Carbon Fibers
Inter-process Competition: Open Molding vs. Closed Molding
Environmental Forces at Play: Evolving State and Federal Regulations
Economic Forces at Play: Globalization
Inter-process Competition: Thermoset Injection Molding vs. Thermoset Compression molding
Summary of Inter-material and Inter-process Opportunities and Challenges Confronting the Compression
Molders
PART II: THE COMPRESSION MOLDING METHOD
The Basic Process
Unreinforced Material Processing
Reinforced Material Processing
Bulk Molding Compound (BMC)
Sheet Molding Compound (SMC)
Thick Molding Compound (TMC)
PART III: THE COMPRESSION MOLDING MATERIAL SUPPLY CHAIN
Primary Compression Moldable Resins: Thermosets
Epoxy
Phenolic
Unsaturated Polyester
Melamine and Urea
Primary Compression Moldable Resins: Thermoplastics
Polyethylene and Polypropylene
Ultra-high-molecular-weight Polyethylene
A Comparison of the Performance of the Compression Moldable Resins
Recent Pricing of the Compression Moldable Resins
Future Pricing of the Compression Moldable Resins: The Principle of Reversion to the Mean
Leading Suppliers of Materials to the Compression Molders
AOC
Ashland Specialty Chemical Company
Bulk Molding Compounds
Cosmic Plastics
Interplastic
Jet Moulding Compounds
Plastic Engineering Company
Premix
Reichhold
Sumitomo Bakelite
Recent Corporate Consolidation on the Compression Molding Material Supply Chain
PART IV: THE COMPRESSION MOLDING MACHINERY SUPPLY CHAIN
Leading Manufacturers of Compression Molding Machines
Apex Plastic Technologies
C. A. Lawton
Chant Engineering
Dake Division
Erie Press Systems
HPM
Pacific Press & Shear
Sacmi Imola
Sherdil Precision
Technical Machine Products
Williams, White & Company
PART V: THE COMPRESSION MOLD SUPPLY CHAIN
Leading Compression Mold Manufacturers
PART VI: THE SIZE AND GROWTH OF THE COMPRESSION MOLDING BUSINESS
The Available Database
Developing an Alternative Database: The PCRS Survey
The Volume of Compression Molded Output, 2001-2009
The Value of Compression Molded Output, 2001-2009
PART VII: MAJOR END-USE MARKETS FOR COMPRESSION MOLDING
Aircraft and Aerospace
Appliances
Automotive
Building and Construction
Caps and Closures
Electrical Components
Electronic Equipment Enclosures
Furniture
Marine
Material Handling
Pipe Fittings
Sanitary Ware
PART VII: RECENT TECHNOLOGICAL CHANGE IN COMPRESSION MOLDING
Low-pressure Sheet Molding Compound
Long-fiber-reinforced Thermoplastics
Natural Fiber Reinforcement
Part Decorating: Eliminating the Paint Pop Problem
Alternative Decorating Methods: Lessons from Alternative Plastics Processors
Gas-Assist Molding: Cost Reduction through Weight-saving
PART VIII: PROFILES OF COMPANIES ON THE DEMAND AND SUPPLY SIDES OF THE
COMPRESSION MOLDING BUSINESS
Profiles of 100 companies with captive, custom and/or proprietary compression molding operations
150 Pages
20 Tables
9 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 1980. He is a member of several plastics industry associations such as the Society of
the Plastics Industry, the Society of Plastics Engineers, and the Association of Rotational Molders International. He is also a
member of the National Association of Business Economists. He has researched and written over 75 multi-client reports, as
well as over 100 single-client 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 domestic and 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 plastics industry participants. PCRS is able to utilize research methods
developed through 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 provides 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.