US Plastic Industry Predicts Growth in 2026

The latest “Plastics Industry Outlook” forecasts that production across all four U.S. plastics sectors will grow in 2026, with further expansion expected in 2027.

Plastics Industry AssociationIn his quarterly forecast, Dr. Perc Pineda, Chief Economist at PLASTICS, stated that plastic machinery is expected to grow by 10%. Production of plastic materials and resins is projected to increase by 2.7%, followed by plastic products, which are expected to rise by 1.8%. Mold production is anticipated to grow by 0.2%, reversing the previously predicted decline.

Broader increase in manufacturing output

In September 2026, U.S. industrial output rose slightly.Federal ReserveManufacturing output rose by 0.3% for the month. Despite this monthly gain, the overall picture for the third quarter was less encouraging, as the annualized pace of total industrial growth slowed to just 0.7%, with rising energy costs and persistent supply chain bottlenecks adding to the pressure.

Specifically, in the manufacturing sector, the 0.3% increase in September marked a rebound from the 0.2% decline in August. Mining activity also showed a similar slowdown, with output rising slightly by 0.2% in September, down from the robust 0.5% growth recorded the previous month.

On the capacity front, the Federal Reserve noted that industrial capacity utilization rose to 76.9% in September from a revised 76.4% in August—a figure that was adjusted upward from its initial estimate—indicating a slight tightening in the use of available capacity across the industry as it enters the final quarter of the year.

BloombergIn a note, Sal Guatieri, senior economist at BMO Capital Markets, stated: “Driven by the artificial intelligence boom and robust consumer demand, U.S. factories continue to modestly increase goods production.”

According to a Bloomberg report, manufacturers find themselves grappling with higher input costs and supply chain challenges stemming from war and tariffs.

Import prices soar

In addition, newly released figures show that import prices have experienced their sharpest annual surge in more than four years.Bureau of Labor StatisticsIn September 2026, the import price index rose by 8.1% year-on-year, with broad-based increases across various categories. Even excluding the sharp surge in petroleum product costs, the index still recorded its steepest annual gain since May 2022.

In uncertain times, Pineda points out that employment in the plastics industry remains unstable.

Pineda writes that employment forecasts remain mixed, with job losses expected in plastic products and molds, while resin and machinery sectors are projected to see slight growth. Energy costs, persistent price pressures, and a shortage of skilled labor continue to be key challenges.

Looking ahead to 2027, Pineda pointed out that output in all four sectors is expected to grow, led by machinery and molds.