Rubbing it in: Import penetration and declines in major markets have caused revenue to fall

The Synthetic Resin and Synthetic Rubber Manufacturing industry is a key part of Australia's chemical and plastic manufacturing sectors. Industry products are used as key inputs in many downstream manufacturing industries. However, declines across the Manufacturing division and rising import penetration have negatively affected the industry over the past five years. Industry revenue is expected to fall at an annualised 3.5% over the five years through 2018-19, to total $2.1 billion.Synthetic resin and rubber products are required to produce a variety of products used in various end markets including packaging and construction firms. The industry has two major players, and many small players producing specialised or niche products...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
-3.5%
Forecast Growth 19-24
Profit
Employment
3,336
Businesses
241

Industry Threats & Opportunities

  • Despite growing import competition, profit margins have increased over the past five years
  • Falling oil and gas prices have supported profit margin growth over the past five years
  • Revenue is expected to decline as imported products capture a larger share of domestic demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Synthetic Resin and Synthetic Rubber Manufacturing industry is in the decline phase of its economic life cycle. Industry value-added, which measures the industry's contribution to the overall economy, is projected to decrease at an annualised 0.3% over the 10 years through 2023-24. This represents a significant underperformance of Australian annualised GDP growth of 2.7% over the same period.The number of industry enterprises has decreased marginally over the past five years, due to weaker domestic demand and growing international competition. Imports from countries with lower labour costs are providing an increasing source of competition for industry players. These products effectively set the world price, which local manufacturers generally meet to remain competitive. Thi...purchase to read more.

    Additional Insights for the Synthetic Resin and Synthetic Rubber Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Synthetic Resin and Synthetic Rubber Manufacturing are:

  • Availability of resource
  • Optimum capacity utilisation
  • Concentration on core business
  • IBISWorld analysts also discuss how external factors such as Demand from polymer product manufacturing and Domestic price of plastic and rubber products in the Synthetic Resin and Synthetic Rubber Manufacturing industry impact industry performance..

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    What's in this report

    What is the Synthetic Resin and Synthetic Rubber Manufacturing Industry?

    Companies in the industry manufacture synthetic resins and synthetic rubber. Industry manufacturing includes mixing and blending resins and polymeric materials. Key products include synthetic resins, non-vulcanisable elastomers, and synthetic rubbers and blends. Industry products are sold to downstream industries, such as packaging, chemical, construction and transportation firms.

    Industry Products
  • Other thermoplastics
  • Synthetic rubber products
  • Thermosetting polymers
  • Other synthetic resin and rubber products
  • Polyethylene thermoplastics
  • Industry Activities
  • Cellulosic resin and non-cellulose resin
  • Thermoplastics, including polyethylene, polypropylene and polystyrene
  • Polymer, including polyacrylate, polybutadiene, polycarbonate and polymethacrylate
  • Other polymer, including polyurethane, polyvinyl acetate and polyvinylchloride (PVC)
  • Synthetic resin
  • Synthetic rubber and synthetic rubber composite
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from polymer product manufacturing
  • Domestic price of plastic and rubber products
  • Trade-weighted index
  • World price of crude oil
  • World price of natural gas

  • Current Performance
  • Contracting revenue
  • Import dominance
  • Rationalisation

    and products

  • Chart: Revenue Growth

  • Industry Outlook
  • Weaker profitability
  • Structural trends
  • Greener polymers
  • Table: Synthetic Resin and Synthetic Rubber Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Synthetic Resin and Synthetic Rubber Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Plastic Bottle Manufacturing
  • Plastic Flooring and Other Polymer Product Manufacturing
  • Plastic Bag and Film Manufacturing
  • Plastic Pipe and Plastic Packaging Material Manufacturing

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Basic Organic Chemical Manufacturing
  • Petroleum Refining and Petroleum Fuel Manufacturing

  • Products & Services
  • Polyethylene thermoplastics
  • Other thermoplastics
  • Thermosetting polymers
  • Synthetic rubber products
  • Other synthetic resin and rubber products
  • Chart: Synthetic Resin and Synthetic Rubber Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Packaging industries
  • Other manufacturing industries
  • Building and construction industries
  • Export markets
  • Other domestic markets
  • Chart: Major Market Segmentation for the Synthetic Resin and Synthetic Rubber Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Synthetic Resin and Synthetic Rubber Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Synthetic Resin and Synthetic Rubber Manufacturing Industry

  • Industry Globalization
    Qenos Holdings Pty Ltd, LyondellBasell Australia (Holdings) Pty Ltd,
  • Table: Qenos Holdings Pty Ltd - financial performance
  • Table: LyondellBasell Australia (Holdings) Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Synthetic Resin and Synthetic Rubber Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Synthetic Resin and Synthetic Rubber Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hdpe
  • Stands for high-density polyethylene, and is used for applications requiring strong and durable functionality.
  • Ldpe
  • Stands for low-density polyethylene, and is used for plastic bags, trays, bottles and tubing.
  • Lldpe
  • Stands for linear low-density polyethylene, and is used for tubing.
  • Pvc
  • Stands for polyvinyl chloride, and is commonly used for durable pipes.
  • Synthetic Rubber
  • A type of artificially manufactured polymer material that acts as an elastomer.
  • What Our Customers Say

    Why buy this report?

    The Synthetic Resin and Synthetic Rubber Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Synthetic Resin and Synthetic Rubber Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Synthetic Resin and Synthetic Rubber Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Synthetic Resin and Synthetic Rubber Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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