Watch Your Injection Molding Suppliers

October 26, 2009

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.

Posted by Doug Smock on October 26, 2009 | Comments (0)

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