SIC 3087 Custom Compounding of Purchased Plastics Resins

SIC 3087

This category covers establishments primarily engaged in custom compounding of purchased plastics resins. For more information related to this industry, see SIC 2821: Plastic Materials, Synthetic Resins, and Nonvulcanizable Elastomers.

Custom compounding companies purchase plastic resins from plastic manufacturers. They alter and manipulate the resins to form new compounds, which they usually sell to companies making plastic products. They contribute to the plastic manufacturing process by upgrading the quality and performance of resins, improving the efficiency of the compounding process, and developing entirely new plastic substances. Custom compounding emerged as a separate industry during the 1980s and is credited with increasing the breadth of the U.S. plastics business during that decade. About one-third of all U.S. polymer production undergoes some sort of compounding.

NAICS CODE(S)

325991

Custom Compounding of Purchase Resin

INDUSTRY SNAPSHOT

There were 579 establishments in the industry in the mid-2000s, and industry shipments totaled $9.12 billion in 2005, compared to $7.01 billion in 2002. There were 20,167 employees in 2005, compared to 21,463 in 2002. In 2005, 13,500 employees were directly involved in production. On average they earned $18.45 per hour.

ORGANIZATION AND STRUCTURE

Plastics are extremely long polymers, or long-chain molecules, which are shaped and molded under heat and pressure to form a resin. Resins typically take the form of pellets, flakes, powder, granules, or liquid. Although many resin manufacturers process their own resins and even make plastic products, they often sell resins to companies that make custom compounds. Custom compounders alter the physical properties of the resins they purchase by mixing or melt-state blending several resins together, introducing additives, or adding fillers and reinforcements. An almost infinite number of compounds, each with varying grades and performance characteristics, can be created.

Several categories of additives are used to make compounds. Plasticizers, the most common additives, are chemicals that increase a resin's flexibility. Similarly, impact modifiers increase stress resistance. Plasticizers and impact modifiers are used, for example, to increase the resilience of plastic automobile body panels or to make polyvinyl chloride (PVC) resins used in construction materials. Various stabilizers and antioxidants are used to retard the oxidation and breakdown of resins that results from exposure to heat, light, air, and moisture. Heat stabilizers, for instance, help resins to retain their physical structure during processing. Flame retardants are added to reduce flammability, and colorants are used to change a resin's hue.

Fillers and reinforcements are used to add texture, strength, and other characteristics to...

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