Processors aren't the only ones feeling the sting of resin price increases. Distributors, brokers, and yes, even resin manufacturers are being squeezed by the increased price of petrochemicals. Just like processors, resin suppliers are in stiff competition, so whenever they increase prices, it may be at the cost of staying competitive. Distributors may find clients looking to other companies that carry lower priced product lines. On a similar note, Manufacturers may find that their distributors start selling more of a competitor's resin to satisfy the processor's demand for lower prices.
If you're selling plastic, this atmosphere of bargain shopping doesn't necessarily mean that all your business is going to disappear. If customers are in the mind set of finding a better deal, it’s an opportunity to find some new business.
One of the first questions a processor or design engineer asks themselves when given the order to cut costs is, "Can I get away with using a less expensive material?" This question leads to a search for a competitive offset grade, either using the Internet or Prospector with Alternative Resins Search (more info) | view demo). (A competitive offset grade is a material that can be substituted in place of another without significant changes in part performance).
Depending on the application, there can be a number of additional requirements besides just the standard physical, mechanical and thermal performance. Keep in mind that plastics processors are looking for these items; ease of processing, color, regulatory compliance, environmental resistance, and OEM-mandated requirements, which further add to the complexity of finding an offset resin.
Cost isn't the only reason a processor might have to seek out an offset grade from you. Sometimes a part isn't performing as intended and a better resin is needed. Occasionally a product is going to be used in a different market where regulatory requirements are different or have changed.
Another example is the availability of the material. Either their current supplier can't provide a reliable supply or the material is no longer available. A good example of this is the discontinuation of Dow Plastics Questra line of SPS (Syndotactic Polystyrene). Keeping your eye on the competition can alert you to either new or discontinued materials and may provide a new opportunity for your company. You can do this every so often by visiting The Plastics Graveyard™ which is a report we manage to track changes in product names and manufacturers.
Your Expert
Ben Howe is a content manager for IDES Inc. and is responsible for the management of
74277
unique grades of plastic material data sheets from more than
636
resin suppliers. Ben holds a degree in Mechanical Engineering from the University of Wyoming (2001).
Ben Howe is a content manager for IDES Inc. and is responsible for the management of
74277
unique grades of plastic material data sheets from more than
636
resin suppliers. Ben holds a degree in Mechanical Engineering from the University of Wyoming (2001).