The region's highly competitive plastics industry has provided substantial strength to the region's economy during the past 25 years. Industry employment has more than tripled in this period, soaring from fewer than 1,700 workers in 1960 to more than 5,600 employees today. From 1989 to 1995, the local plastics industry cluster rapidly added new jobs by an annual average rate of 8.9 percent, exceeding national industry growth of only 1.6 percent. Although the industry accounts for only 1.9 percent of total regional employment, it contributes 4.2 percent of the area's export-based employment. In 1995, 94 percent of its work force earned their wages by manufacturing products that are sold to customers outside of the region. With its outstanding growth, the industry is assuming a greater role in bringing new money into the region.

Part of the success of the region's plastics manufacturers in the last decade can be attributed to the aggressive pursuit of markets traditionally dominated by steel. For example, Double J. in South Haven produces auto interior cabin components that once were strictly steel. The diversification of the local plastics industry has enabled firms to serve many markets from automotive to furniture. Advanced Plastics Corporation in Schoolcraft is planning to double in size, while Geiger Technic, an auto supplier, just added 100 workers at its newly constructed facility. In addition, local firms are expanding into new markets by acquiring small, home-grown companies that manufacture and distribute plastics components in other regions. For example, Total Plastics, a subsidiary of A. M. Castle, based in Illinois, purchased a small plastics company in South Bend as the entry point to its market. Despite the plastics cluster's growth, the industry lacks a strong regional supplier base. An addition of 100 new jobs will generate only two additional workers in the region's other manufacturers. Most of the industry impact is felt in the region's retail and personal services sector.

Benchmarking: How Do We Compare?

The region's plastics industry is strong. Among a group of competitor metropolitan areas of similar size in the Great Lake states, Kalamazoo-Battle Creek ranked high in percentage growth in wage and salary earnings from 1986 to 1996. Regional Plastics grew by 205 percent while competitors grew 147 percent in Toledo and only seven percent in Akron. When compared to the nation, the region's plastics firms continue to shine. Earnings rose by $119.9 million from 1986 to 1996, and 63 percent of that growth was due solely to the region's firms outperforming their national counterparts.