SIC 3087 Custom Compounding of Purchased Plastics Resins

Encyclopedia of American Industries | 2005 | Copyright

SIC 3087
CUSTOM COMPOUNDING OF PURCHASED PLASTICS RESINS

This category covers establishments primarily engaged in custom compounding of purchased plastics resins. For more information related to this industry, see the SIC 2821: Plastic Materials, Synthetic Resins, and Nonvulcanizable Elastomers.

Custom compounding companies purchase plastic resins from plastic manufacturers. They alter and manipulate the resins to form new compounds, which they usually sell to companies making plastic products. They contribute to the plastic manufacturing process by upgrading the quality and performance of resins, improving the efficiency of the compounding process, and developing entirely new plastic substances. Custom compounding emerged as a separate industry during the 1980s and is credited with increasing the breadth of the U.S. plastics business during that decade. About one-third of all U.S. polymer production undergoes some sort of compounding.

NAICS Code(s)

325991 (Custom Compounding of Purchase Resin)

Industry Snapshot

There were 832 establishments in the industry in the late 1990s, up from 644 in 1995. Industry shipments totaled $8.2 billion in 2000, compared to $7.9 billion in 1997. There were roughly 8,000 employees in 2000, compared to approximately 27,660 in 1997. In 2000, nearly 19,500 employees were directly involved in production. On average they earned $14.94 per hour.

Organization and Structure

Plastics are extremely long polymers, or long-chain molecules, which are shaped and molded under heat and pressure to form a resin. Resins typically take the form of pellets, flakes, powder, granules, or liquid. Although many...

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