Show I EXPLOSIVE GROWTH FOR PLASTICS IN STORE By Babson's Reports Incorporated Incorporated Wellesley Hills Mass The The year 1968 will be re recorded recorded corded in the annals of the plastics industry not only for forthe forthe forthe the Anniversary celebration celebration tion but for a dramatic turn in the price structure Production and sales were practically in hi balance while prices were firm or even high high- er This was due to a deeper inroad in established sectors and the opening of of several new areas Sales reached billion pounds last year Plastics Plastics Plastics Plas Plas- tics now exceed production of any metal except iron and steel They account for about 20 per cent of the chemical industry's sales and are the growing fastest-growing and largest of the major segments r The Th Ma Major G Growth rth Areas Major and most pl plastics are the thermoplastics tics materials which soften with heat and harden again when cooled Polyethylene polyvinyl chloride PVC VC and polystyrene are the vol big ume thermoplastics Of the seven principal markets construction construction con con- packaging transportation transportation trans trans- electronics appliances ces furniture and agriculture the first three represent sent the greatest potential for growth Construction About 25 per percent percent percent per per- cent of plastics materials produced produced produced pro pro- are used in construction C for interior ulterior walls partitions partitions part part- partI I floors insulation aiding siding sid aid J ing shutters translucent panels and coatings Because of a less rigid building code use of plastic pipe is also increasing in in- increasing creasing rapidly Currently some 2 billion pounds of the above polymers are consumed annually By 1970 some 7 billion billion bil bil- lion pounds and by 1980 between between be be- tween 10 billion and 12 billion are expected to to be consumed yearly Packaging this This is the sec sec- ond-largest ond market with volume volume vol vol- ume at 28 billion pounds Within a year consumption is anticipated at the 4 billion level and double that that amount by 1980 One of the sizable applications is in bottles for toiletries and cosmetics However However How How- ever once the Food Administration approves the PVC for more applications its gr growth could lI be dynamic Transportation Industry estimates pinpoint the use of plastics in automobiles alone at 57 pounds per car in 1967 This year pounds is forecast forecast fore fore- cast and pounds per car carin carin carin in the Some million million mil mil- lion pounds are expected to tobe tobe tobe be produced this year and on the order of 3 billion pounds pO as liS we enter the Irl Principal Ther TherAs Ther Thermoplastics st As the selling largest-selling plastic Polyethylene has the greatest st growth rate As a general purpose purpose pur pur- pose molding it s ha-s captured the bulk of the packing mar mar- ket keto Sales should reach 5 54 4 billion billion bil bil- lion pounds pO in 1970 and 12 billion in 1980 compared 1980 compared with witha a little over 3 billion bl in 1965 Polyvinyl Chloride PVC is the second largest and the most versatile Major markets market Include de baby pants shower curtains wall coverIng covering cover cover- Ing and upholstery However food packaging has also become become be be- come a big item for PVC as aswell aswell aswell well as vinyl home siding Sales of 3 31 1 billion pounds and 6 6 69 9 billion are forecast for 1970 and 1980 respectively vs 18 billion in 1965 Finally Poly Polystyrene tyrel e a glassy and anc often brittle plastic used for kitchen wall tiles has carved out a large niche in large and small home appliances and in the burgeoning applications for furniture simulated furniture simulated wood grains Sales of over 3 billion pounds are forecast for 1970 and over 6 billion by 1980 Conclusion And Recommendation The production of plastics s sis is not limited solely to chemical chemical chem chem- ical companies A broad spectrum spectrum spec spec- trum ranging from basic chemical producers to oil gas and rubber companies and in including including including in- in even food and glass firms is represented Union Carbide second largest in the chemical group is heavily involved involved involved in in- in hi all all' three of the the major thermo thermoplastics It produces produces produces pro pro- duces more than 1000 varieties irs ies of seven basic plastic mat mat- crisis s ca t rl t 1 practically y every every industrial and consumer consumer need Profits in 68 1967 were under pressure from reduced operating rates heavy heavy startup start startup start start- up costs and strikes However Babson's Reports believes 1969 could be a turnaround year in both sales anc and ear earnings ings Hence we advise purchase of the conservative grade common ifor for growth and income |