“Unpredictable” is the word that comes to mind when I think about the plastics industry in 2024. Still stung by the pandemic and its aftermath, plastics processors remain uncertain whether we're entering a new period of stability or will experience more unforeseen turbulence. But the industry has proven its ability to weather short-term storms, whatever their nature. Regardless of the near-term outlook, it's clear that plastics have entered a new era of maturity. Obvious opportunities to grow through substitution for glass, steel and other competing materials have run their course, while sustainability concerns are creating pressure to reduce plastics usage. Future growth must be earned through innovation and developing plastics materials for more sophisticated applications.

One way manufacturers can increase the functionality of plastics is with performance additives such as UV protection and antimicrobials, which can position plastics favorably against competing materials and provide a “moat” of protection against easy substitution.

In conjunction with performance additives, sustainability remains a driving force in the industry — though supply of quality recycled resins is well short of demand. Municipalities are refining collections and recycling processes, making waste streams for recycled content more reliable. That reliability should translate into a promising supply of post-consumer recycled feedstock in 2024. However, compounders must learn to formulate recycled feedstock into consistent, quality materials for processors to implement. More and more, our Sustainability team at M. Holland is being called on by customers to assist with adoption.

Recent history has seen supply challenges for many materials and additives. Successfully navigating the new year without over- or under-ordering demands a focus on forecasting, logistics monitoring and meticulous inventory management. Maintaining an open dialogue with suppliers and customers will be crucial to achieving a balance between supply and demand.

The plastics industry has learned to prepare for the unexpected in recent years. This agility will serve producers well as operations continue to normalize. I sat down with M. Holland experts representing the Automotive, Electrical & Electronics, Healthcare, Packaging, Rotational Molding, Sustainability, and Wire & Cable markets to discuss their best guidance and predictions for the coming year. Read on to discover the insights that will set you up for success in 2024.