Extrusion International 6-2025-USA

33 Extrusion International 4/2025 cant investment in SI Group’s global innovation capabilities,” said Rob- ert Kaiser, VP Strategic Marketing and Managing Director - EMEA at SI Group. “Together with our ve ad - ditional Innovation Centers, we’re building a robust, globally connected R&D network that enhances compet- itiveness, delivers advanced solutions tailored to regional needs, and sup- ports the long-term growth of our business.” The inaugural event was held on October 23, 2025, featuring a tour of the facility and a keynote address by His Majesty’s Lord-Lieutenant of Staffordshire, Professor Elizabeth Barnes CBE, on behalf of His Majesty King Charles III. Media representa- tives and industry professionals were invited to attend. SI Group www.siigroup.com Economic Analysis: Rate Cuts, Tax Policy Set the Stage for Long-TermManufacturing Growth The Plastics Industry Association (PLASTICS) Chief Economist, Dr. Perc Pineda, has released a new economic analysis examining how recent Federal Reserve rate cuts and tax policy changes could shape the outlook for U.S. plastics manufac- turing. Dr. Pineda explains, “The Federal Reserve cut the federal funds rate by 25 basis points at the Federal Open Market Committee (FOMC) meeting on October 28 to 29, 2025, bringing the target range to 3.75% to 4.0%. This marks the second rate cut this year, totaling 50 basis points. Al- though the market is pricing in an- other cut before year-end, monetary policy is not on a preset course. In theory, lower interest rates should spur higher investment spending, which in turn boosts in- come and likely leads to increased consumer spending. This feedback loop should push production curves upward across the plastics industry’s value chain. We observed a slow- down in plastics production when the federal funds rate reached 4.0%; however, monetary policy lags will in uence how quickly lower rates translate into increased investment – particularly in plastics end markets – from compounding and tooling to full-scale produc- tion,” concludes Dr. Pineda. To read the full analysis on the PLASTICS blog. www.plasticsindustry.org/blog/fed- rate-cuts-tax-breaks-plastics-industry/ Economic Analysis: Plastics Industry Demonstrates Stability Amid Federal Shutdown Disruptions PLASTICS Chief Economist, Dr. Perc Pineda, has released a new economic analysis detailing the impact of the recent 44-day U.S. government shutdown and its im- plications for the plastics industry. Despite the substantial macro- economic cost, PLASTICS’ analysis shows that the industry’s role in federal procurement remained steady, underscoring plastics’ stra- tegic importance across both de- fense and nondefense government functions. Dr. Pineda explains, “Aside from the macroeconomic impact of the government shutdown on the plastics industry, the sector’s direct exposure to U.S. govern- ment spending can be measured by the amount of plastic products embedded in final demand. PLAS- TICS estimates this at $9.5 billion in 2024.” “The $9.5 billion in fed- eral spending on plastic products highlights the plastics industry’s integral role in supporting both defense and nondefense func- tions of the U.S. government. By providing materials and products embedded in critical operations and services, the industry not only directly underpins government op- erations but also indirectly serves the broader needs of American society. This demonstrates that, while macroeconomic shocks such as a government shutdown can af- fect overall demand, the plastics industry maintains a measurable and strategic presence in feder- al procurement,” concluded Dr. Pineda. To read the full analysis on the PLASTICS blog. https://www.plasticsindustry.org/ blog/the-cost-of-the-recent-govern- ment-shutdown-through-the-lens-of- the-plastics-industry/ Dr. Perc Pineda