Washington, D.C. — The Plastics Industry Association (PLASTICS) Chief Economist, Dr. Perc Pineda, has released a new economic analysis examining rising labor costs and the implications for plastics manufacturers in 2026. The analysis explores how cooling labor market conditions, minimum wage increases, wage compression, and rising benefit costs are expected to affect overall operating expenses across the industry.
Dr. Pineda writes, “For the year ahead, plastics manufacturers will need to carefully monitor both wage trends and employment cost dynamics. Minimum wage increases, wage compression, and ripple effects, combined with rising benefit costs—particularly health insurance influenced by broader policy and regulatory changes—are likely to place upward pressure on total labor costs in 2026. By understanding these forces and incorporating projected changes in the ECI into budgeting and strategic planning, businesses can better anticipate cost pressures, maintain competitiveness, and sustain workforce stability in an evolving labor market.”
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.
