Conver Competition
Now Viewing Conver's competition in: Plastic and Rubber Products Manufacturing (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large an area does the company service? - Companies often serve customers within just a few hundred miles.
Does the company develop products for customers? - Customers expect plastic molding companies to be involved with the product from design through distribution. Manufacturers need more complex product design knowledge and capability, including more sophisticated machinery and better-educated employees.
How many customers does the company have? - Many companies have just a few large accounts. Typical customers include OEMs, such as auto, aircraft, and medical device companies; consumer product companies, such as Procter & Gamble, or soft drink bottlers that use bottles and containers; end-users such as hospitals and the construction industry; and makers of consumer products.
Are there fewer but larger customers in the company's market, due to industry consolidation? - Lower marginal profit on contracts may result from the lack of bargaining power of smaller plastics suppliers with consolidated manufacturing industries.
Does the company have multi-year contracts? - Some producers have multi-year contracts with customers, but one-year contracts are more common.
Has the company been affected by the rising prices of raw materials? Are alternate resources available? - Raw materials are a major expense, often costing up to 50 percent of revenues. In some cases, using recycled plastics can reduce production costs.
What is the average time from order to delivery? - The life of a new product from concept to market has decreased from years to months. A short production cycle is crucial to meet demand.
Competitive Landscape
Because plastic products are widely used in industry and as consumer products, demand depends on the health of the US economy. The profitability of individual companies depends on product mix and production efficiency. Large companies have economies of scale in buying raw materials and in manufacturing commodity products such as bottles and plastic film. Small companies can compete effectively by specializing. The industry is labor-intensive: annual revenue per worker is about $220,000.
Full Industry Overview For Plastic and Rubber Products Manufacturing
Business Challenges
CRITICAL ISSUES
Demand Depends on Manufacturing - Demand for most plastic and rubber products is closely linked to the US economy. Because most plastics and rubber products are intermediate components that go into final goods, demand rises or falls in tandem with manufacturing activity.
Raw Material Price Fluctuations - Because many plastic and rubber products are derived mainly from oil and natural gas, price and availability depend on the price of these feedstocks (raw materials). Manufacturers typically pass price increases along for raw materials, but higher world oil prices make plastics a less desirable replacement for other materials.
Industries Where Conver Competes
- Industrial Manufacturing
- Rubber & Plastic Product Manufacturing(primary)
