Role of Plastics Products Manufacturing in the Economy of Erie County, Pennsylvania

Abstract

The Penn State Workforce Education and Development Initiative conducted an analysis of the economic impact of plastics products manufacturing in Erie County in Pennsylvania. The analysis was designed to help understand the impact of the loss of 200 jobs as a result of the Plastek Group's recent decision to relocate its deodorant stick container operations to Hamlet, North Carolina. The relocation plans, announced April 12, 2010, have been under consideration for several years and the affected employees will be given incentives to move with the operations.

The Economic and Workforce Brief produced from this analysis provides a benchmark for measuring the total employment, employee compensation, and property taxes associated with every 100 workers employed in Erie County's plastics products industry.

The Plastek Group, headquartered in Erie, Pennsylvania, produces 80% of oval deodorant stick containers in the U.S. market, according to the Plastek corporate website. The move to North Carolina was prompted by a need to reduce ever increasing transportation costs.

Products provided by The Plastek Group are classified in the North American Industrial Classification System code 326199. According to the U.S. Bureau of the Census, establishments in this industry "are primarily engaged in manufacturing plastics products (except film, sheet, bags, profile shapes, pipes, pipe fittings, laminates, foam products, bottles, plumbing fixtures, and resilient floor coverings."

Keywords: economic impact, pennsylvania, plastics products