Are you planning on starting a plastic manufacturing business? You are at the right place to get knowledge about what you need to do before setting up a plastics manufacturing business. It is requisite to understand the roots, system, processes of any business before going ahead officially. There is much scope in the plastic industry as plastic production is predicted to be doubled by the year 2050.
Did you know the current worth of the plastic market in 2020 is $654.38 billion? According to Statista, survey the global plastic production volume is 359m mt. China produces the largest quantity of plastic that is approximately 60 million tones and then comes the US with 38 million tons of production.
Since the 1940’s the plastic has become an essential part of human lives. It is frequently used in our everyday life. Many people love to use plastic products because it is lightweight, easy to carry, durable & safe, occupy less space for transportation, waterproof, economical, and recyclable. Plastic is mostly used by the food & beverage industry in food packaging.
A lightweight plastic can make your pocket heavy by generating a lot of money. Developing the right skills and using absolute strategies assist in making business reach a global level. It is important to recognize the material, molding techniques, trimming methods, heating & cooling timing, machinery handling, pre, and post processes.
Below are the all-important points you should consider when starting a plastic manufacturing business;
Determine Plastic Niche & Market Potential
The first and most essential decision is to choose a plastic niche. What kind of plastic do you want to produce? Determine which plastic assembling would be more profitable for your business. Understand the demand and needs of the consumers of the target region.
Custom plastic is used in making many items like:
- Plastic bags
- Food packing
- Medical products
- Kitchen utensils
- Construction Pipes
- Soft Drink Bottles
- Consumer good appliances
Evaluate would your plastic niche would bring massive value in the plastic industry? Check which plastic manufacturing could drive positive outputs for your business on a long term basis. You can also select a type that has sub-niche to expand the production goals.
Analysis of what kind of plastic is being produced by competitors in the market. Market research will give you good know-how about the production requirement and demand of the desired customers. Look for areas that will give more growth opportunities.
Make Concrete Business Planning
The initial working of any new business begins with making clear vision, missions, and objectives. The value and quality of work depend on good planning. For well-structured and organized businesses take expert advice and consultancy.
Decide the physical setup and responsibilities for task implementation. Propose the registration process of business according to legal laws. Understand government policies, taxation, and rights. Make the master plan about how your plastic production operations will function? How much the resource will be required for efficient and effective daily plastic assembling?
Estimate the number of employees that would be required. Implement of the plan strongly depends on the working force and team of managers. Hire the best experienced and skilled labor force that has a grip on technicalities.
Work on the sales and distribution channel. Decide the target market you want to supply your plastic products. In case of any uncertainty estimate the backup cost and maintenance scheme.
Before starting a business on the big level the key idea is to conduct pilot testing. Pilot testing helps the business team to understand the daily working, operational methods, machine functions, business weaknesses, and strengths.
Select The Types Of Plastic For Production
The core success of a custom plastic manufacturing company relies on the selection of plastic-type. Good quality plastic would more benefit in business sales and revenue generation. Choose the plastic-type that is budget-friendly. Calculate which plastic-type would be more eco-friendly, sustainable, and recycled conveniently.
To start a plastic production it is significant to understand which plastic-type would produce the type of product you want to manufacture. Plastics have different mechanical properties and qualities. The most commonly used plastic is Thermoplastics. It has the ability to melt and solidification cycles.
Plastic comes in thousands of varieties. Some common types of Thermoplastic are;
- Polyethylene (PE)
- Polycarbonate (PC)
- Acrylic (PMMA)
- Polyamide (PA)
- Polylactic Acid (PLA)
- Polypropylene (PP)
- Polyvinyl Chloride (PVC)
- Polyether Ether Ketone (PEEK)
- Acrylonitrile Butadiene Styrene (ABS)
Recognize Manufacturing Cost
The cost of manufacturing relies on the type of plastic part you want to produce. It is mandatory to do allocate the budget in all departments of business effectively. Estimate the high mold cost, production cost, setup cost, and price per part, material cost, and distribution cost. Choose the production process which suits your business investment.
Material & Machinery Requirement
To make business victorious it is necessary to have knowledge of production material, tools, and equipment. Application for plastic material involves gears, star wheel, machine guard, chain guides, flexible tubing, bearings, and brushing. Analyze what materials and equipment already existing companies are using? How to maintain the machinery for long term production?
Understanding Methods Involved in Plastic Manufacturing Process
Plastic manufacturing involves a lot of steps in the preparation procedure. You should know-how
Plastic parts are made. What are the new technologies being used in the industry?
The most widely used methods are:
- Manufacturing with Injection Molding
- Manufacturing with Extraction Molding
- Manufacturing with Blow Molding
- Manufacturing with Rotational Molding
Firstly, understand the dos and don’ts of plastic production. What are vacuum forming, polymer casting, CNC machining, required chemicals, and molding process? Determine the 3D files you need and procedure 3D plastic printing. What kind of plastic could be recycled plastic for future production?
You might want to check out this industry report from Yahoo as a guide for your plastic startup.
The plastic manufacturing business is growing at a substantial speed. To step into this industry it is recommended to follow the basic business steps on starting a plastic manufacturing business which can help you place a strong foundation of your business.