Tag Archives: Plastics

How New Chinese Tariffs Impact Small-Mid Sized Manufacturers

Recently imposed Chinese tariffs on U.S. rubber imports will have significant impact on the small to medium American manufacturers that support industries such as automotive, medical equipment, petrochemical, and plastics. As part of an increasingly contentious trade war, the latest Chinese tariffs call for a 25% increase on an array of goods, such as those used in rubber and polymer component fabrication.

The Harmful Impacts of a Trade War on Small Businesses

Small- and mid-sized manufacturers in America specializing in rubber moldings, extrusions, and injection-molded parts will be forced to find ways to counteract the adverse effects of rising inflation on raw materials. Petroleum is a primary component for synthetic rubber and polymer production, so the most recent tariffs mounted by China will no doubt force small manufacturers to increase their prices to compensate.

In early June, the Trump administration launched its first wave of tariffs against Chinese-manufactured equipment, including the injection and transfer molding machines commonly used for extruded rubber and plastics. This has only compounded the difficulties of the situation for smaller manufacturers, causing them to seek alternate sources for the rubber fabrication machinery they rely on to create products and components. The long-term effects are expected to influence manufacturers serving in the custom and OEM markets, including those facing downward pressure from larger partners that have also been affected by tariffs from both sides.

In automotive production, rubber-based and plastic-based products such as gaskets, seals, brake pads, and tires are on the front lines. Medical equipment companies rely on custom extruded plastic tubing, pump parts, and device housings. With another round of 25% tariffs recently finalized by the Trump administration, small and custom manufacturers must brace for the additional escalations that will inevitably follow.

Plan Ahead, Avoid Potential Pitfalls

The trade war could potentially expand into industrial chemicals and fluoropolymers that are used in rubber gaskets and extruded plastic profiles, as well. Many of those materials are chemically formulated for high-temperature ranges, corrosion resistance, and anti-weathering, making them a crucial requirement for operations with harsh environments. A domino effect in pricing will no doubt impact buyers down the supply chain in a range of industries. Fortunately, however, many small business manufacturers are doing what they can by shifting resources to other markets, reducing production, and tightening profit margins.

Industry at UPR

At Universal Polymer & Rubber, our team is committed to staying on point for our clients, leveraging seasoned and innovative methods to ensure that we maintain the same service standards despite the trade war impact. We work hard every day to apply our years of small business manufacturing expertise to finding ways to ensure that our clients get their products on-time, within budget, and without sacrificing quality.

Follow our blogTwitter, and LinkedIn to stay up to date on current industry news and trends. For more information on our products and services, contact us today.

Ohio Manufacturing

The rebound in manufacturing since the Great Recession began in 2009 has been incredible, and it has helped to spur on our country’s economic recovery. Throughout the United States, some states are more involved in the manufacturing sector than others. Here in Ohio, we are one of the top five states in the country in regards to manufacturing, meaning our state is one of the leaders in the economic recovery of our country. Here are ten facts you should know about manufacturing in Ohio:

  1. In 2013, Ohio had a manufacturing output of $99.83 billion of goods, the fourth-largest output in the nation. Ohio has been in the top five by manufacturing output every year since 2008.
  2. This output accounts for 17.66% of the total gross state output.
  3. If Ohio’s manufacturing sector was its own country, it would rank 64th in the world, with a greater output than countries like Belarus, Sri Lanka, and many more.
  4. Manufacturing employed over 682,600 people in 2014, the third most of any state.
  5. Since 2009, Ohio has added over 68,000 new manufacturing jobs.
  6. Manufacturing jobs in Ohio pay well – while the average annual compensation for all non-farm employment was $46,654 annually in 2014, for manufacturing, the average compensation was $69,951.
  7. Ohio is home to numerous large manufacturing companies – Procter & Gamble, Marathon Petroleum, Sherwin-William, AK Steel, Goodyear Tire & Rubber, and Crown Equipment are just a few that have headquarters in the state.
  8. All together, including us here at Universal Polymer, there were 13,045 manufacturing firms in Ohio as of 2012.
  9. Ohio’s top manufacturing industries are transportation equipment, fabricated metal products, machinery, food and manufacturing, and plastics and rubber products, in that order.
  10. From 2009 through 2013, Ohio ranked either first or second every year in regards to manufacturing growth of sites that created 50 jobs, had 20,000 square feet or more of manufacturing space, or had over $1 million in investments.

As you can see, Ohio is an extremely successful and important state when it comes to manufacturing, and at Universal Polymer and Rubber, we are extremely proud to be part of it. We look forward to Ohio continuing to be a national powerhouse in the manufacturing sector. If you want to know more about Ohio manufacturing or you are interested in being part of it through a career in manufacturing, get in touch with us or The Ohio Manufacturers’ Association at www.ohiomfg.com.