The plastic molding industry is growing exponentially.
From pharmaceuticals to beverages, industrial sectors to food production, the market is estimated to be worth $475.9 billion by 2023.
A plastic injection molding service specializing in packaging is one of the fastest-growing sectors due to the demand for lightweight, flexible materials that are low-cost and moisture-resistant.
However, competition from overseas has made it increasingly difficult for domestic plastic injection molding businesses to survive.
Here we’ll identify how you can succeed in the plastic molding industry and the key pitfalls to watch out for along the way.
Research Demand For Plastic Molded Parts
Any new company requires a business plan, but it’s especially crucial if you want to make money with injection molding.
There are several issues to consider:
- Many companies have an established supply network, which can be very tough to break into as a competitor.
- As a new supplier, you are likely to be subject to rigorous vetting processes, determining things like quality control and capacity.
- Low-cost manufacturers in the Far East can make it hard to compete on price.
If you’re launching a new plastic molding business, you need to be confident you can overcome these challenges and that sufficient demand exists.
The best way to evaluate demand is to immerse yourself in networking and identifying why a potential customer may switch suppliers.
For example, you could offer organizational efficiencies by supplying local businesses currently reliant on overseas production.
You could then market your business by promoting the reduction in the carbon footprint when parts are sourced from a local company.
Another option is to look at new businesses in your state and showcase the value you offer by highlighting the quality controls they’ll have when working with a domestic supplier.
Invest Wisely In Injection Molding Equipment
The next factor is your equipment.
Undoubtedly, to compete with existing manufacturers, you will need to invest in good-quality machinery.
You will need molding equipment, material handling tools, plastic dryers, inspection machinery, robotics, and overhead cranes to get started.
Did you know you can even create custom colors by mixing in injection molding?
There are multiple ways to branch out into plastic parts production:
- Creating a new arm of an existing business with an established operating base and long-standing reputation.
- Purchasing a plastic injection molding company at a liquidation auction, where factory premises are often sold for a fraction of their market value.
- Building a startup business, but acknowledging that this will require substantial time and investment before making a profit.
Keep in mind that there is little merit in over-investing in high-value machinery you can’t afford, even if it does represent the most innovative option on the market.
The Risks Of Low-Cost Plastic Injection Molding Equipment
Outdated injection molding machines are widely available but are rarely cost-efficient.
The ideal strategy is to choose a respected mold maker.
While these molds may cost double that of a low-cost mold, there is a significantly lower potential for error.
Suitable quality molds made with professional-grade metals will produce more reliable parts and avoid common issues, such as reducing the lifespan of your clamping unit.
The aim is to build a reputation of quality.
Investing in higher-quality standard equipment, even with basic functionality, is a better starting point than investing every penny in high-tech machinery that you may never use.
In many cases, you can partner with other local plastic molding businesses to create dual quotations, utilizing their technical abilities with your expertise to benefit both companies.
Identify Your Plastic Injection Molding Niche
Finally, it pays to have a USP that differentiates your business offering from the competition.
While you probably cannot compete on price with large scale manufacturers, we have identified some excellent selling points that may meet other KPIs, such as:
- Faster production times
- Reduced logistical delays
- Improved environmental impact
- Enhanced organizational efficiencies
- Greater quality control
No business is a comprehensive leader in every aspect of their trade, and so as a new business, you need to identify areas where you have a specialty.
For example, you can create a profit analysis to evaluate jobs that offer the highest returns and bid only for those contracts to avoid taking on any risky business.
If you have exceptional skills and professional experience that add value, you may have an advantage over competitors with less proficiency.
The plastic injection molding industry is a challenging field to enter, but with a growing market, it might be worth your investment. And with proper research, wise investments, and specialized expertise, you will become a competitive business in the field.
