Washington, D.C. — The Plastics Industry Association (PLASTICS) Chief Economist, Dr. Perc Pineda, has released a new economic analysis detailing the impact of the recent 44-day U.S. government shutdown and its implications for the plastics industry. Despite the substantial macroeconomic cost, PLASTICS’ analysis shows that the industry’s role in federal procurement remained steady, underscoring plastics’ strategic importance across both defense and nondefense government functions.
Dr. Pineda explains, “Aside from the macroeconomic impact of the government shutdown on the plastics industry, the sector’s direct exposure to U.S. government spending can be measured by the amount of plastic products embedded in final demand. PLASTICS estimates this at $9.5 billion in 2024.”
“The $9.5 billion in federal spending on plastic products highlights the plastics industry’s integral role in supporting both defense and nondefense functions of the U.S. government. By providing materials and products embedded in critical operations and services, the industry not only directly underpins government operations but also indirectly serves the broader needs of American society. This demonstrates that, while macroeconomic shocks such as a government shutdown can affect overall demand, the plastics industry maintains a measurable and strategic presence in federal procurement,” concluded Dr. Pineda.
Click here to read the full analysis on the PLASTICS blog.
About the Plastics Industry Association
The Plastics Industry Association (PLASTICS) supports the entire plastics supply chain, including Equipment Suppliers, Material Suppliers, Processors, and Recyclers, representing over one million workers in our $551 billion U.S. industry. PLASTICS advances the priorities of our members who are dedicated to investing in technologies that improve capabilities and advances in recycling and sustainability and providing essential products that allow for the protection and safety of our lives. Since 1937, PLASTICS has been working to make its members, and the eighth largest U.S. manufacturing industry, more globally competitive while supporting circularity through educational initiatives, industry-leading insights and events, convening opportunities and policy advocacy, including the largest plastics trade show in the Americas, NPE: The Plastics Show.
