Thomas E. Blaige, chairman & CEO of Blaige & Co., told PlasticsToday that plastic business owners should start exploring options to help grow and become more successful in the competitive marketplace.
"The playing field is changing," he said. "There could be more risks by doing nothing; they need to go beyond their comfort zone."
Despite the global financial crisis, plastics M&A activity in recent years has remained well above the long-term average level, implying that the industry has unique characteristics and thus, does not mirror general industrial M&A activity trends, according to Blaige. This could hold many implications for buyers and sellers of plastic processors, including unique opportunities for those small to mid-sized companies, which make up the majority of the industry.
The plastic processing segments, which include blowmolding, injection molding, and thermoforming, analyzed by Blaige's firm indicate that the U.S. market is comprised of 1450 plastic processors. Made up of primarily small to mid-sized companies, 97% of those have annual sales of less than $500 million, with 78% under $50 million.
In a new plastics packaging M&A consolidation study based on 12 years (2001-2012) of proprietary research, Blaige & Co. identified four consolidation trends associated with the industry.