Plastics Sector Sees Growth Despite Rising Import Costs
Manufacturers should prepare for uneven production demand and higher input costs across all plastics sub-sectors in 2026.
Updated on Oct. 16, 2026 in Manufacturing
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The Plastics Industry Association projects production growth across all four US plastics sectors throughout 2026. This outlook accompanies a broader uptick in industrial activity, with manufacturing production rising 0.3% in September.
Why it matters
While industrial capacity utilization improved in September to 76.9%, manufacturers face rising input costs, with import prices climbing 8.1% year-over-year. These divergent trends in output and costs require operators to carefully manage margins as demand shifts across plastics sub-sectors.
Plastics machinery production is projected to grow by 10%, while materials and resins are set for a 2.7% increase and plastic products by 1.8%. These figures arrive as industrial capacity utilization reached 76.9% in September, despite a slowing third-quarter annualized growth rate of 0.7%.
The players
Plastics Industry Association
An industry trade group representing the plastics manufacturing supply chain and providing sector-wide performance projections.
The details
Growth expectations vary significantly by plastics segment, with machinery leading the sector at 10% compared to just 0.2% for molds. Despite the positive production forecast, manufacturers are navigating a 0.3% monthly production increase alongside cost pressures from an 8.1% hike in the import price index. Employment outlooks are also bifurcated, with projected declines in plastic products and molds production contrasting with modest anticipated gains in the resins and machinery segments.
Timeline
August 2026: Manufacturing production declined by 0.2%.
September 2026: Manufacturing production increased by 0.3%.
Full-year 2026: Plastics sector production growth forecast.
2027: Continued expansion expected for plastics sectors.
Market Landscape
The production forecast aligns with the Federal Reserve's industrial capacity utilization series, which highlights a recovery in factory output to 76.9% in September. This uptick reflects a rebound from the previous month's contraction as firms navigate higher import costs.
Operators should evaluate their procurement strategies to account for the 8.1% annual increase in import prices while assessing whether their specific plastics sub-sector aligns with the projected growth of 0.2% to 10%. Factor in potential labor supply changes, as hiring trends are expected to diverge across the machinery and finished product segments.
The takeaway
The plastics industry faces a period of segmented expansion, with machinery manufacturers positioned for the most significant growth. Monitor quarterly industrial output reports to adjust inventory levels and capital expenditure plans in accordance with the 2027 growth outlook.
Further reading
For broader trends in output and workforce shifts, see the Manufacturing section.
Source note: This article includes information reported by PlasticsToday.
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