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 blog, Twitter, and LinkedIn to stay up to date on current industry news and trends. For more information on our products and services, contact us today.
UP&R is proud to announce that we have just completed our fifth overall acquisition, and third in the last four years. Our continuous acquisition strategy has cemented our position as one of the largest non-mixing polymer fabricators in the United States. At UPR, we are always actively looking for additional polymer parts manufacturers that fit our perpetual approach.
Who did we acquire this time? Gasko Fabricated Products of Medina, OH! Gasko is a high-volume, die-cutting converter of polymer and hybrid materials for gaskets, seals, and diaphragms. Such modules are used for power take-off and transmission, and engine management/fuel delivery system applications in the automotive, marine, and outdoor power equipment markets.
Over time, the Medina facility will transition to our Tallmadge, OH facility, attaining synergies, economies, and shared die-cut expertise.
John Zielinski, our Executive Vice President, commented, “Customers and prospects have been asking for a wider variety in our converting, and through this acquisition, we will now be able to provide for the market’s need.”
What Sets Us Apart from the Competition
With about two handfuls of competitors within a 50-mile radius, we unremittingly set our self apart from the many other polymer companies in Northeast Ohio. Acquisition numbers from our wide-range of capabilities allow us to achieve a high-level stature. Our competitors include other rubber molders who tackle tarp straps, but similar manufacturers have limited capabilities that lead to our success as a business. At UPR, we have four different types of tarp straps including our own brands, and multiple layers to each brand.
Through our assortment of brands comes a fluctuation in price point too. Businesses, both small and large, will be able to find an answer that fits their needs.
Additional competitors include extrusion and molding, but the competition only supports one focal point – either, or – not both. Here, at Universal Polymer, we have the support to focus on rubber molding, rubber extrusions, plastic extrusions, tarp straps and gaskets, because of the diversity of our qualified, in-house, team experts. We are a one-stop-shop for all of your polymer solutions for the transportation and cargo control market, construction and pipe manufacturers market, automotive OE supply chain as a Tier II and Tier III, and the general industrial market that comprises several well-known global manufacturers.
Our one-stop-shop doesn’t only serve the end product of a tarp strap, a pipe gasket, window gasket, tire or more. When we say everything is done in-house, we mean it. From die-cutting to fabrication, both your polymers and rubbers start and end with us. UPR beats out the multiple stops that you would have to take to buy extrusions from one manufacturer and your required molded parts from another.
As a robust and elite manufacturer, there’s no worry, no wasted downtime, no hassle. All of our different parts are preplanned, engineered, designed, and already taken care of with you in mind. Every piece you need already fits perfectly together. With UP&R, you get all of the aspects of a small business manufacturer with the quality of a big manufacturer, meaning all of your bases–quality AND quantity, are covered “under one roof.”
With the Gasko acquisition, we continue to supply and have increased supplies for the automotive, marine, and outdoor power equipment industries, plus further industrial markets too.
Immediate customer-facing benefits include:
Both locations, Medina and Tallmadge, have historically specialized in fast turn-around, high-mix, high volume production, making them highly complementary. Plans include the move of Medina’s manufacturing into our Tallmadge location, an IATF-16949 and ISO-9001 certified production facility.
A Stronger Product Line for Customers – The Gasko product line, when added to our already broad product line, will enhance the total basket of goods that UP&R offers to our current customer base, and further, to market.
Enhanced Capabilities – While UP&R and Gasko have shared similar historical focus’, each excels in specific, but complementary areas. We look to offer Gasko customers a more full range of offerings – molded and extruded rubber parts, and die-cut parts, from IATF16949 certified facilities – that will provide vendor consolidation opportunities in a lean manufacturing world.
Our Ideology at UP&R
Because we put continuous improvement into our day-to-day, we get better each day. Started in 1970, we have continuously operated since inception. In 2018, our staff is proud to say that we are wiser today then we were just yesterday. And with additional resources now onboard, we’ll be able to continue forward with our successful business model.
Today, UPR stands ready to help your company compete and grow. At UP&R, we are committed to providing you first-rate service, timely service, and quality – every single time!
How We’ve Grown Since the Beginning
Universal Polymer & Rubber started out as a tarp strap and pipe gasket manufacturer. We have remained true to our roots by building upon that initial foundation. Starting off as a smaller size business, we leveraged our expertise in pipe gasket development and manufacturing, to gain business in other interwoven product applications including window gaskets, tote gaskets, and tires. Currently, we have branched out into other markets, and through our market diversity and versatility, we have been able to learn from all markets to apply best practices from each market application to the next.
To this day, we remain one of the largest suppliers of pipe gaskets in North America.
National Manufacturing Day (NMD) is an annual day of recognition for the modern manufacturing industry. Established to highlight companies in the manufacturing sector and their many accomplishments, it is also designed to inspire and help secure the next generation of American industrial creators. Those firms interested in participating may register on the official site. Once listed, individual events can be marked as public or invitation-only.
NMD initiatives include the promotion of STEM (Science, Technology, Engineering, Math) subjects, bridging the skills gap and reshoring of industry back to the U.S.
On Friday, Oct 6, 2017, NMD will highlight more than 2,000 American manufacturers, with many opening their doors to the public to showcase this vital sector of our economy and inspire America’s youth to pursue careers in manufacturing and engineering. Manufacturers like UP&R understand how essential it is to motivate millennials to graduate in science, technology, engineering, and math, as these graduates hold the key to future American production and innovation. Industries’ goals are to help ensure that the manufacturing industry in America will continue to not only survive, but thrive.
A couple of proudly made-in-the-USA examples from UP&R’s product line are Goldline and AMERIPRIDE Tarp Straps. These straps are used by truckers to keep their tarps securely tied down and their cargo safe from weather or any other environmental hazards.
Based in Middlefield, Ohio, our company got our start in 1970 and has been in continuous operation as a premiere custom manufacturer of rubber extrusions, plastic extrusions and rubber moldings including compression moldings, transfer moldings and injection moldings that meet the needs of our many valued customers. In celebrating this day, we not only acknowledge our contributions but those of all our partners in industry.
With every presidential election comes change, and with a new administration in office both large and small business’ have been feeling the effects. The U.S. stock market saw a jolt of activity that hasn’t been seen since 2014. In August 2017 the Dow Jones set record highs, hitting an intraday peak of 22,179.11 on August 8th. Although the outlook seems optimistic, some of the numbers aren’t playing out as expected.
Although the Dow Jones is up, this is the first time numbers have been down in the manufacturing industry in a couple of years. As of July 2017, the monthly automotive light vehicle production in North America was off by about 13%. That’s a steep drop in an industry that has seen monthly increases (year on year) for two to three years. Here at Universal Polymer & Rubber, we understand how all industries can affect each other. For example, the housing industry has been flat and is down from just one year ago. All manufacturing companies that produce supplies for the housing industry will, in turn, feel the impact of the stagnant market. Although the outlook was good and indicators like the Dow Jones are up, small and medium sized manufacturing companies haven’t seen those positive effects.
What’s even more concerning is that the American manufacturing base sees more chaos than order. Take for example the North American Free Trade Agreement (NAFTA). 40% of our automotive business, and a large percentage of original equipment parts and systems, comes from Mexico and Canada. A change of border control and / or a tariff will change the expectancy and function of our business and the millions of businesses like ours. It will also send cost models out of the window, in an industry that is extremely cost conscious, that negotiates over pennies as if life itself depended on it.
President-elect Donald Trump has also campaigned on getting rid of NAFTA, feeling America is getting the short end of the stick. Now, President Trump is in negotiations to better the deal for the U.S., although many don’t think Canada or Mexico will buy into much change, as it would hurt their own countries too.
Mexico may well consider President Trump’s dedication to building a wall between the two countries as counter-productive to their goals. So whether or not NAFTA survives is anyone’s guess at this point. Many small manufacturers are struggling with the uncertainty of the future and what it holds, and uncertainty is never good for manufacturers. Here at Universal Polymer & Rubber, we will continue to manufacture rubber extrusions, plastic extrusions and rubber moldings including compression moldings, transfer moldings and injection moldings for our customers, while we stay abreast of what’s impacting our industry.
To learn more, we invite you to read our blog, follow us on Twitter, like us on Facebook, and connect with us on LinkedIn. To learn more about how Universal Polymer & Rubber can help you, we invite you to contact us today.
This month UPR received a rewarding validation of our efforts, being recognized by one of the most widely read publications in the world of manufacturing and construction– Construction in Focus. Universal Polymer & Rubber Ltd. is pleased to be seen as a “Made in America” success story in the July 2017 issue.
We would like to thank the magazine for the opportunity and to tip the hat to everyone who has been involved in helping us earn that spotlight.
“A Made in America Success Story” (pages 114-117), is a candid look at the legacy of Universal Polymer & Rubber Ltd and dives deep into the secrets of our longevity. The write-up digs through our accomplishments during such uncertain economic times, highlighting our efforts to avoid reliance on exports for revenue. Contrasting companies are especially glaring because many rubber manufacturers and suppliers in the Midwest have been forced to closed their doors in the past decade.
Still, we remain confident in our diverse product line and our commitment to quality conscious, lean production. In the next five years, we look to expand our footprint in North America and aim to increase the volume of trade with international clients.
What Sets UP&R Apart?
Hendley talks to a few of our company’s captivating factors:
Our ability to custom create products from client supplied designs – models and blueprints. Standard units like tarp straps are good sellers. But our expertise isn’t restricted to these “bought off the shelf” items. UP&R customers depend on our prowess when it comes to crafting parts from customer designs.
Our diverse product pool and market base. We aren’t just an automotive seller or a pipe gasket company. We have the skill to manufacture tarp straps and items that require finely honed rubber and plastic extrusion capabilities as well.
Our dedication to quality. UP&R team members are the best at what they do. We possess the ISO 9001:2008 certification (without design) and also the ISO/TS 16949 certification across all facilities.
Also mentioned are snippets about the ‘5 S’ program that will help with all future facilities, whether expanded or acquired.
Finely peppered with quotes from our Executive Vice President, John Zielinski, we find that the engaging article both informs and inspires like-minded companies and future business prospects.
If you are interested in staying up-to-date on the latest in manufacturing, construction, and the plastic and rubber industries, please follow our blog, Twitter, and LinkedIn.
The molding process is the mainstay of most of the rubber or elastomer products in use today. It is designed for materials that have the resilience to return to their original shape without distortions even when subjected to extreme stress.
This intrinsic memory is what makes rubber such a popular choice for everything from pipes and gaskets to pedal pads for autos and a variety of water-resistant seals.
WHAT DOES MOLDING ENTAIL AND ITS VARIOUS TYPES:
Technically speaking molding is a balancing act between application of heat and pressure. The two factors work in tandem to trigger a chemical reaction in rubber and modern day items are born – with their pliability, intricate details and robustness.
There are three types of variations to molding and each process has a plethora of advantages to recommend it.
Injection Molding – With its start way back in the mid-nineties, it mandates significantly higher application of pressure per square inch on the heated rubber in the molding cavity. The prepared material is shaped into convenient strips and fed to the hold orifice of the injection mold machine. Since it doesn’t require pre-forms it is faster than compression molding.
Compression Molding – Popular for small batches of low hardness compounds, this process calls for the creation of pre-molds in the exact shape as that of the end product. The material of the pre-form fills the molding cavity to capacity. Upon application of heat and pressure it spills or flashes out of the overflow grooves. This is an indication of a properly etched deliverable. The mass is then demolded by hand.
Transfer Molding – Again, necessitating the use of pre-forms, transfer molding is nevertheless one of the most cost effective options in the industry. The pre-form is placed in a ‘transfer pot’ and compressed with a plunger which in turn pushes or transfers the primary raw material through openings called ‘sprues’ to the functional cavity of the machine.
UNIVERSAL POLYMER AND RUBBER’S LEGACY:
Universal Polymer and Rubber Ltd. is an ISO 9001 company that is the industry leader in molded rubber offerings excelling at all three variations of the process. It services the transportation, marine, automotive, construction, outdoor power equipment, and industrial pump markets with myriad products that are both durable and customized to client specifications.
Manufacturer of the world renowned GOLDLINE ® tarp strap, it is valued for its strict compliance with best practices and adherence to quality.
If you would like to be a part of the Universal Polymer and Rubber network of customers, kindly request a free quote here or write into email@example.com