01 2 MAY 2 14 N ISSUE ING DIVISIO PLANN G E CO UNTY LOOK TORAN IC OU Snapshot of Orange County’s Plastics Industry NOM The Plastics and Rubber Products subsector includes businesses engaged in theECO manufacturing (NAICS 326) and distribution (NAICS 424610) of plastic and rubber products. The local industry is comprised of 31 businesses that employ over 750 people. In addition, there are 14 companies within related industries that employ“Plastics… There’s a great future in plastics” (The Graduate, 1967). over 400 people (Infogroup, 2011). This is a total of 45 companies that employ close to 1,200 people. AN OVERVIEW OF THE LOCAL PLASTICS INDUSTRY Luis Nieves-Ruiz, AICP Orange County’s Plastics and Rubber Product Manufacturing industry’s locationIntroduction quotient is 0.33, which means that the majority of these establishments mainly serve the local market (see box). However, the County has an advantage inPlastics was the topic of conversation last month when Orange County Plastic Bottle Manufacturing (NAICS 326160), which has a location quotient ofsuccessfully hosted the NPE2012 plastics exposition, which attracted more 2.7. Another industry with export potential is the Plastic Materials Wholesalersthan 1,900 exhibitors and 55,359 plastics professionals from all over the (NAICS 424610), which has a location quotient of 1.54. These establishmentsworld. The NPE is one of the largest industrial tradeshows in the country distribute plastic resins and shapes such as rods, sheets, and film.and serves as a showcase for the latest plastic and resin manufacturingtechnologies. Besides demonstrating the capacity of the County’sconvention and tourism industry, this event could also serve to attract What is a Location Quotient?plastic companies to our area. The prospects are promising, as A location quotient (LQ) is a measure of economic specialization that compares a sectormanufacturing exports are leading the US recovery (Istrate & Marchio, in the local economy against a reference economy. They can help to differentiate2012). Moreover, after years of decline, the Plastics and Rubber Industry between non-basic (import) and basic (export) industries. A location quotient higher thangrew 3.5 percent during the past two years (Helper, Krueger, and Wial, 1 implies that an industry is producing more than needed for local consumption. This surplus is exported outside of the region. On the other hand, an LQ lower than 1 reflects2012). To take full advantage of any forthcoming opportunities, it is an industry that does not meet local demand, which fuels the need to import more of theimportant to understand the characteristics of the local plastics industry. product. To calculate the location quotient, staff uses the Bureau of Labor StatisticsThis brief provides an overview of Plastics and Rubber companies in Location Quotient Calculator. Industries are grouped using the North American IndustryOrange County, including company types, the number of jobs, and business Classification Code (NAICS), a comprehensive system used to group establishments into industries according to their production processes. NAICS organizes industries into 20agglomerations. sectors and 1,175 industries. Staff used the nation as a reference base area to do the analysis. Orange County Planning Division– Outlook May 2012 1
A geocoded database provided by Infogroup, which lists over 40,000 business is likely to be in demand due to its proximity to the Florida Turnpike. There is records in Orange County, was used to study the local industry in detail. This not, however, a direct connection between any of these businesses . information was supplemented with internet searches to help find additional information about individual businesses. A list of companies by NAICS sector Conclusion and their products can be found here. The Plastics and Rubber Industry is expected to grow because of the renaissance of manufacturing in the United States. The importance of manufacturing is in its exports, its capacity for innovation, and its large multiplier effect on the economy. Orange County’s Plastics sector is comprised of about 45 companies that employ close to 1,200 people. These companies supply to other industries, such as food processing, manufacturers, and packaging. Based on this economic analysis, the County’s biggest niche strength is in the Plastic Bottling Manufacturing subsector (NAICS 326160). This industry was recently strengthened by the opening of the Pelliconi Group’s U.S headquarters in south Orlando. Pelliconi manufactures plastic and metal caps, crowns, and closures for the bottling industry. In the near future, the County could also work to attract plastic manufacturers that supply to other sectors like defense and leisure and hospitality. Orange County has a great future in plastics, and hopefully Figure 1. Most Plastic businesses are the local industry will be even more vibrant when the NPE tradeshow comes located along Orange Blossom Trail, John Young Parkway, and the Florida Turnpike. back in 2015. Click picture for larger map. Selected ReferencesInfogroup lists three bottling companies that produce plastic bottles for the food Helper, S., Krueger, T., and Wial, H. Why does Manufacturing Matter? Whichand beverage industry. Besides food and beverage containers, Orange Manufacturing Matters? Brookings Institute, February 2012 [electronic version]County’s plastic manufacturers also make a variety of products, including Istrate, E. and Marchio. N. Export Nation 2012: How U.S. Metropolitan Areas areprepaid gift-cards, plastic tubes, laminates, foam building insulation, mold Driving National Growth. Brookings Institute March 2012 [electronic version].control systems, packaging, and custom parts. In addition, the County hasother establishments that use plastic to produce custom made orthopedic About the Author Luis Nieves-Ruiz, AICP has a Masters Degree in Regional Planning from Cornelldevices, adhesives, and small custom parts for the marine, aerospace, and University and works as a Principal Planner for Orange County.other industries. These companies are distributed throughout the County(Figure 1). There are four small agglomerations of plastic companies. Of Outlook is a publication of the Orange County Planning Division. Follow us on Faceparticular interest is the Taft area, which houses the largest concentration of book @ http://on.fb.me/K2lSDD.plastics businesses, including two foam manufacturers, one tire retreadingcompany, two bottling companies, and two plastic device companies. This area Orange County Planning Division– Outlook May 2012 2
Overview of Plastic and Rubber Product Companies located in Orange CountyNAICS Sector Description Companies Types of Products326113 Unlaminated Film & Sheet Mfg 1 Prepaid-gift cards326122 Pipe & Pipe Fitting Mfg. 2 Drainage tubes for septic systems.326130 Laminated Plate, Sheet & Shape Mfg 1 Laminates for home counters &floors.326150 Urethrane & Other Foam Products Mfg. 3 Building insulation & carpet cushion326160 Plastic Bottle Mfg. 3 Food & beverage containers326199 All Other Plastics Products Mfg 9 Sheets, signs, props, & custom products3263112 Tire Retreading & Fixing. 2 Reused car tires326199 All Other Rubber Product Mfg. 3 Balloon sculptures, resurfacing, & water ski products424610 Plastic Materials Basic Forms & Shapes Wholesalers 3 Variety of products325211 Plastics Materials & Resin Mfg. 1 PET cups & lids339113 Surgical Appliance & Supplies Mfg. 2 Custom braces & other plastic orthopedic products423830 Industrial Machinery Merchant Wholesalers 2 Plastic materials & engineered resins424690 Other Chemical Merchant Wholesalers 2 Adhesives from various providers453998 Plastic Products Retailers 2 Plastic bags & packaging332710 Machine Shops 3 Custom parts on order basis332912 Fluid Power Valve & Hose Mfg 1 Hydraulic hoses, fittings & die cut gaskets332919 Other Metal Valve & Pipe Fitting Mfg. 1 Industrial piping products Source: INFOUSA Orange County Planning Division– Outlook May 2012 3
Orange County Planning Division– Outlook May 2012 4
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