Plastics Manufacturers Facing Competitive Challenges

Innovation Forums to Put R&D within Reach of Canadian Companies

TORONTO, Sept. 29 /CNW/ - The Canadian plastics industry is facing significant challenges from lower cost countries, and the sector can become more competitive through increased research and development.

"The industry has to keep moving up the value chain," says Mark Badger, President and CEO of the Canadian Plastics Industry Association (CPIA). "We need to shift more production from commodity goods to higher-end products. That means investing in innovation and new technologies."

The $33 billion domestic plastics industry, composed of some 3,400 companies employing 113,000 workers, is one the largest manufacturing employers in the country. It accounts for 4.2% of manufacturing GDP. However, it is largely made up of small and medium-sized companies, many of which do not have the resources to undertake their own research and development.

"This is an issue which is critical not only for our own sector, but also for the broader Canadian economy because plastics are integral to so many advanced applications today," notes Badger. "Canada simply cannot afford to lose competitive ground in plastics manufacturing."

In response, CPIA has launched a ground-breaking initiative designed to put promising R&D within reach of smaller Canadian companies. It is hosting a series of Plastics Innovation Forums across the country that will bring together industry executives and prominent university researchers who are working on advanced applications and processes.

Dr. John Vlachopoulos, a chemical engineering professor at McMaster University and one of the forum presenters, notes that "there is a wealth of applied R&D activity occurring within Canadian universities that can be utilized by the industry."

Over the past year, CPIA mapped the R&D activities occurring within academia against the technological needs of the industry. This data was then used to plan the events.

The first two Innovation Forums will be held on October 5 in Toronto and November 29 in Vancouver.

At these venues, the professors will discuss their work in applied research areas, with the goal of entering into joint projects with interested companies.

Some of the research work to be presented will include such topics as: packaging that can detect pathogens, nano-composite plastic materials, and advanced recycling of used tires into value-added rubber and plastic products.

The forums are being sponsored by the National Sciences and Engineering Research Council of Canada (NSERC), as well as a number of corporations.  

The Canadian Plastics Industry Association is the national voice of Canada's plastics industry, representing the interests of processors, material suppliers, equipment manufacturers and brand owners across the country.

The Canadian Plastics Industry
Fast Facts

• The plastics industry employs approximately 113,000 Canadians. This makes it one of the largest manufacturing employers in the country.
• There are some 3,400 companies in the industry with shipments totaling about $33 billion a year.
• The industry represents 4.2% of manufacturing GDP.

(Source for the above: Invest in Canada, Department of Foreign Affairs and International Trade)

• The plastics industry has historically grown faster than overall manufacturing and the economy as a whole.
• The industry has broad and rapidly growing industrial and consumer applications. Plastics are used by virtually every end-use segment of the economy.
• Overall, it is estimated this industry is 95% Canadian-owned.
• Trade is heavily skewed toward the U.S., which accounts for 90% of Canadian exports of plastics products and 72% of imports.
• While growth has been rapid, many products are sold as commodities whose profit margins are low. Few companies have established a competitive advantage through product differentiation.
• Also, the Canadian industry is characterized by a large number of small and medium-sized enterprises (SMEs). These smaller firms do not have the resources to undertake in-house R&D.

(Source for the above: Industry Canada, Canadian Plastic Products Industry Profile)

For further information:

About the Plastics Innovation Forums, please contact: