Utilization rates down at Canadian molding facilities: CPL survey

For the first time in many years, a majority of Canadian injection molders are utilizing less than half their machinery capacity, according to the new Canadian Plastics Injection Molders’ Benchmark Survey.

This year, 34.4% of respondents are sitting below a 39 per cent utilization rate, with an additional 28.1% saying their average machinery utilization rate is between 40 and 49 per cent.

Compare that to last year’s results, where only 26% of molders said their average machinery utilization rates were at 39 per cent or less.

And faced with overcapacity, many molders are still finding it hard to bring in new business into their plants. Nearly 68% of respondents said that only a handful of quoted projects turn into actual business.

This year’s results are in sharp contrast to 2006, where a large majority of the respondents (70%) had an average machinery utilization rate of 60 to 90 per cent, and only a small majority were sitting below 39 per cent.

Findings from this year’s Injection Molders’ Benchmark Survey will be published in the January/February 2009 issue of Canadian Plastics, and full survey data will also be made available on the Canadian Plastics website in February.