US plastics firms switch from auto parts

Employment in the US auto industry has already halved since 2000, to less than 500,000. Now, with major restructuring underway, suppliers of plastics components are looking around for other markets.

One current success story, identified by the Wall Street Journal, is WJG Enterprise in Michigan. A 55-employee company, it was 100% oriented to auto parts until last year. But now, it is fast diversifying into the medical device market, where precision tooling is also a critical factor.

WJG bought new molds for $1.2m, and expects the medical business to represent half of its turnover by the end of the year. The blog likes the WJG website motto - “Where Failure is not an Option”.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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