Watch Your Injection Molding Suppliers

Companies such as Delphi and GM have emerged from bankruptcy, but considerable distress remains in the injection molding supply chain for automotive and other industries. A complete plastic injection molding machine operation in Los Fresnos, TX goes on the auction block tomorrow, for example. injection molders in the USA are barely budging 50 percent of capacity - and that’s with a much reduced machine base. Used molding equipment is selling for 50 to 70 percent below 12 months ago.

It’s a two-edged sword for design engineers who specify molded parts. There are bargains galore out there because business remains slow and machine costs have declined. On the other hand, there is a smaller supply base to provide parts when demand improves. Suppliers will be slow to invest in new capacity in the early stages of the recovery.

This is a good time to stick with  blue-chip suppliers. Pass on the quick bargains.