FOR IMMEDIATE RELEASE

Contact: Barry Eisenberg
Tel: (202) 974-5210

SPI RELEASES FOURTH QUARTER AND ANNUAL PLASTICS MACHINERY SHIPMENT STATISTICS
Total Value of Plastics Machinery Shipments in 2007 Drops 12 Percent from 2006; Forecast is for Gradual Rebound in Second Half of 2008

WASHINGTON, D.C. (March 11, 2008) – U.S. manufacturers and importers of primary plastics machinery and equipment shipped $210 million worth of primary machinery (excluding components and auxiliary equipment) in the fourth quarter 2007, according to the latest equipment statistics released today by the Society of the Plastics Industry, Inc. (SPI) Committee on Equipment Statistics (CES). This is 8 percent lower than the $228 million shipped in the third quarter of 2007.

For all of 2007, total machinery shipments are down 12 percent in terms of dollars when compared with last year. The total number of units shipped in 2007 is 13 percent below the comparable figure from 2006. Economist Bill Wood, who provided the analysis for SPI’s report, forecasts that “the negative growth rate in the overall equipment spending data will persist through the first half of 2008, but investment is expected to rebound gradually in the second half of the year.” The cost of resins and energy continue to hinder the ability of plastics processors to invest in new equipment. “In addition, demand for plastics products remains hindered by the sharp declines in both residential construction activity and domestic auto production,” says Wood. For 2008 as a whole, Wood’s forecast calls for a 2 percent decrease in total investment for new industrial equipment when compared with 2007.

The quarterly machinery shipment statistics report serves as an important tool for examining and understanding the U.S. plastics machinery and equipment industry, as well as the economic trends that impact it. Using monthly data supplied by CES participating companies, the report was compiled by VERIS Consulting, LLC. The analysis of the aggregate data was completed by Mountaintop Economics & Research, Inc., a supplier of market analyses and forecasts for decision makers in the plastics industry.

Other data included in the report:

• Auxiliary equipment bookings totaled $80.6 million in the fourth quarter of 2007 – a 1 percent increase when compared with the $79.4 million booked in the fourth quarter of 2006.
  
  
• Extrusion machinery shipments in the fourth quarter 2007 totaled $31.5 million, which is 20 percent lower than the $39.5 million shipped during the same time period of 2006. For the year as a whole, the total shipments value in dollars for extrusion is actually up slightly in 2007 when compared with 2006.
  
  
• There were 26 new Blow Molding machinery units shipped in the fourth quarter of 2007 --18 fewer than were shipped in the fourth quarter of 2006, but one more than the number shipped in the third quarter of 2007.
  
• Injection Molding machinery shipments totaled 722 units in the fourth quarter of 2007, a decrease of 13 percent from the 827 units shipped in the fourth quarter of 2006.

SPI's CES is the only provider of timely and reliable plastics equipment statistics in the country. The reports can be found online at SPI’s Plastics Industry Store. The cost is free for members. Nonmembers can purchase the reports at a cost of $580 for the Annual Report (includes the fourth quarter report) or $250 for an individual quarterly report.

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Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.1 million workers and provides nearly $379 billion in annual shipments.

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