analysis of the micro economic environment and labor needs

™

Analysis of the Micro Economic Environmentand Labor Needs for Development of the

Plastics and Polymers Industry Cluster in Mississippi

The University of Southern Mississippi

Center for Community and EconomicDevelopment

Workforce Training and Development

March 2002

Prepared for:

Mississippi Development AuthorityMississippi Technology Alliance

Mississippi Polymer Cluster Study

Analysis of the Micro Economic Environmentand Labor Needs for Development of the

Plastics and Polymers Industry Cluster in Mississippi


Center for Community and EconomicDevelopment

Workforce Training and Development

March 2002

™

Prepared for:

Mississippi Development AuthorityMississippi Technology Alliance


This report was prepared by The University of Southern Mississippi Center for Community and EconomicDevelopment, a University Center program funded through the U.S. Economic Development Administration. The statements,findings, conclusions, and recommendations are those of the Authors and do not necessarily reflect those of the EconomicDevelopment Administration.


ACKNOWLEDGEMENTS

A project of this scope and magnitude could not be completed without the tireless efforts of ateam of people working behind the scenes to make this project a success. These partners and individualsare committed to economic development in Mississippi, and we thank them for their contributions to thisstudy.

PartnersMississippi Development AuthorityMississippi Technology AllianceMississippi State Board of Community and Junior CollegesMississippi Polymer InstituteThe University of Southern Mississippi School of Polymers and High Performance MaterialsThe University of MississippiMississippi State UniversityJackson State UniversityPetal Public School SystemPearl River Community CollegeJones County Junior CollegeSociety of Plastics Industry

Workforce Training and DevelopmentPolymer Industry Focus Group Participants:

• Accu-Tech Plastics• ConBro (PPS)• Dickten & Masch MS• Georgia-Pacific Resins• Heartland Building Products• Johns Manville• Kincses Tool & Molding Corp.

Robert Ingram, Economic Development Assistant to the PresidentDavid Kolzow, Chair, Department of Economic DevelopmentWilliam Sisson, DirectorAnnette Jones, ManagerCharlotte Batson, Research CoordinatorGloria Brown, Secretary

Ed Bee, Consultant, Taimerica Management Co.Ardyn Thriffiley, Consultant, Strategic Research and Planning

Larry Dunaway, Graduate Research AssistantKeith Gendreau, Graduate Research AssistantJoey Grisham, Graduate Research AssistantKazunar Maruyama, Graduate Research Assistant

Center for Community and Economic Development


• Outdoor Technologies• PolyVulc USA• Richard Plastics Co.• Valspar Refinish• Western Container Corp.• Zeon Chemicals

Industry Participants for Role-expert Interviews:

• Accu-Tech Plastics• Advanced Drainage Systems• American National Molding• Carlisle SynTec• Dana Corp.• Engelhard• GE Plastics• Georgia-Pacific Resins• Heartland Building Products• Kincses Tool & Molding Corp.• Mississippi Polymer Technologies• Outdoor Technologies• Owens Corning• PSI / Summa Industries• Resinall• RK Manufacturing• Seemann Composites• Spartech Industries• The Sherwin-Williams Co.• Valspar Refinish• Wellman of MS• Zeon Chemicals

Nancy Alley, State Workforce Development Coordinator for the State Board for Community andJunior Colleges

Wayne Stonecypher, Associate Executive Director for the State Board for Community and JuniorColleges

Dixon Mills, Vocational Instructional Development BureauBetty Wong, Office of Vocational and Technical EducationLynn Mangrum, Office of Vocational and Technical EducationNASA – Stennis Space CenterJohn Wilson, InDyne, Inc.Barbara Marino, InDyne, Inc.Jennifer Foil, Graduate Research AssistantHeather Annulis, Assistant Professor of Workforce Training & DevelopmentBureau of Apprenticeship TrainingPuget PlasticsJon Carr, Assistant Professor of ManagementJane Griffin, Project SpecialistCyndi Gaudet, Coordinator of Workforce Training and Development


TABLE OF CONTENTS

Section 1

Executive Summary....................................................................................... 11Project Overview and Methodology.............................................................. 18

Task I – Cluster Analysis.................................................................................... 21

Section 2A

Polymer Cluster Definition............................................................................23The Mississippi Polymer Cluster................................................................... 26

Section 2B

Industry Strategy and Rivalry ....................................................................... 31

Basic Strategies in Pursuing Global Competitiveness.......................31Other Factors That Impact Competitive Advantage.......................... 36Conclusions........................................................................................38

Section 2C

Factor Conditions in Mississippi .................................................................. 39

Factor Conditions...............................................................................39Conclusions........................................................................................49

Section 2D

Home Demand Conditions and Related and Supporting Industries ............. 51

Introduction........................................................................................51Conclusion on Home Demand Conditions........................................ 55Related and Supporting Industries.....................................................55Industry Intelligence Profiles: Linkages and Networks.....................55


Section 2E

S.W.O.T. Analysis..........................................................................................57

Introduction........................................................................................57Strengths............................................................................................ 58Neutrals..............................................................................................61Weaknesses........................................................................................ 62Opportunities..................................................................................... 64Threats............................................................................................... 67

Section 2F

Summary of Interviews..................................................................................69Synopsis of Research Interests and Capabilities........................................... 69

Section 2G

Target Industries for Mississippi....................................................................71

Criteria for Identifying Potential Target Industries............................71Current Mississippi End Markets...................................................... 72Forecasts of Market Growth.............................................................. 72Forecasts of Polymer Cluster Growth in Mississippi........................ 76Occupational and Training Forecasts.................................................78Potential Polymer Strategies for Mississippi.................................... 80Recommended Targets for Mississippi..............................................82

Section 2H

Cluster Development Associations................................................................87Organizing Cluster Interests.............................................................. 87

Task II – Workforce Development Models.............................................. 91

Section 3A

Introduction....................................................................................................93

Section 3B

Project Methodology......................................................................................95


Section 3C

Project Results............................................................................................... 99

Expertise of Existing Workforce........................................................99Availability of the Current Workforce and Educational Programs.... 99Polymer Roles....................................................................................107Polymer Outputs................................................................................ 108Polymer Competencies...................................................................... 110

Human Resource Development Strategies.................................................... 117

Strategy for Using Polymer Industry Roles.......................................117

Recommendations for Workforce Development Infrastructure.....................118

Section 3D

Summary........................................................................................................ 121Conclusions....................................................................................................123

Section 4

Polymer Cluster Policy Recommendations................................................... 125

References..................................................................................................................128

Appendices.................................................................................................................131Private Sector RecommendationsDefinitionsSurvey InstrumentsPlastics Survey ResultsPolymer Survey ResultsTablesMapsEducational Program ProfilesOccupational ProfilesWorkforce Development Role Profiles

Mississippi Polymer Cluster Study 11

EXECUTIVE SUMMARY

Section

1

Background on the Project

The Mississippi Development Authority (MDA) has identified the existence of several existingor developable industry “clusters” within the state of Mississippi. One of these clusters involves plasticsand polymers.

The purpose of this report is to perform a comprehensive micro economic analysis of the plasticsand polymers industry in Mississippi, utilizing the Porter Diamond Model. The report will determine thenature and extent of plastics and polymers clustering in Mississippi and explore methods of enhancingthe cluster. In addition, the report identifies opportunities to recruit new higher paying jobs toMississippi, increase the sales/profitability of existing cluster firms through better utilization of existinglinkages and resources, and identifies problems and opportunities which will affect the growth potentialof individual components of the cluster. A separate part of the report will deal with labor and trainingissues.

All activities related to this analysis are aimed toward achieving the following five outcomes:

1. Thorough analysis of plastics and polymers industries’ micro economic environment inMississippi

2. Recommendations to enable cluster development in Mississippi3. Thorough analysis of plastics and polymers industries’ labor needs and skills gaps in

Mississippi, including specific labor requirements through 20104. Identification of career paths specific to the plastics and polymers industry cluster in

Mississippi5. Recommendations to improve linkages between plastics and polymers companies and

educational institutions in Mississippi

As required by the RFP submitted by MDA and stated in the University of Southern Mississippicontract with MDA, this analysis follows the Porter Diamond Model framework (Porter, 1990) to bothdefine the plastics/polymers cluster and to characterize it. This entailed the identification of relatedcompanies and the use of written surveys, oral interviews, and focus groups to determine characteristicsof the cluster environment, which encourage or hinder further growth and development of the cluster. Alabor needs and skills assessment also was done utilizing the methods described above.

Research was performed utilizing all available public sources identified, existing researchpreviously conducted by the University of Southern Mississippi (USM) School of Polymers and HighPerformance Materials (SPHPM), and certain proprietary databases available to the research team undercontract with the USM’s Center for Community and Economic Development. This secondary researchwas used to determine trends in the industry as a whole, as well as trends specific to the Mississippipolymers and the plastics cluster itself.

Mississippi Polymer Cluster Study12

The primary goals for this project are:

• Identify the nature and extent of clustering in Mississippi• Explore methods of enhancing the cluster

- Identify opportunities for attracting new, higher-paying jobs- Increase the sales and profitability of existing cluster firms

• Develop a competency-based performance model for workforce analysis- Analyze employer labor needs and skills gap- Identify and describe career paths specific to the cluster- Recommend ways to improve linkages to educational institutions

• Identify factors that limit the growth and potential of the cluster

Task 1: Cluster Analysis

Porter’s Diamond Model consists of four cluster characteristics of local decision environmentsthat affect the competitive advantage of individual firms (which is the focus of micro economics). Thesecharacteristics are factor conditions, home demand, related and supporting industries, and industrystrategy and rivalry, which were analyzed after the cluster was defined using the available data.Strengths, weaknesses, opportunities, and threats (S.W.O.T Analysis) to the polymer cluster inMississippi also were identified using these data.

Definition of Cluster• A complex array of suppliers, support services, and companies making intermediate

products• A group of 31 industries that comprise seven sub-clusters:

- Plastic resin and petroleum refining- Suppliers and support services for resin production- Plastics products (molding, extruding, compounding)- Synthetic rubber production- Rubber products production (foam and molding)- Organic fiber production- Coatings and adhesives

• Has employment growth rate of 5% per year, which is higher than the national rate• Contains 346 companies in Mississippi• 18,694 workers earning $675 million per year• Average wage in the polymer cluster is more than $36,000 per year, second only to

papermaking• Clusters are a regional phenomenon

- Northern Mississippi focuses on plastic and rubber goods- Southern Mississippi focuses on raw materials, synthetic rubber, resins, and injection molding

Industry Strategy and Rivalry• Mississippi companies trail the nation in polymer patent activity.• Patent generation in Mississippi in this industry is dominated by USM’s polymer program.• Mississippi polymer firms are below national norms in their level of export activity.• Mississippi firms have tended to rely on lower operating costs for their competitive

advantage rather than on capital investment.• Mississippi has experienced strong entrepreneurial growth and development in the plastics

and rubber products sub-clusters in northwest and northeast Mississippi, but is lagging in

13Mississippi Polymer Cluster Study

entrepreneurial activity in the resins refining and materials sub-clusters in southMississippi. Entrepreneurial activities related to commercialization of patent/processesat USM could reverse this trend in south Mississippi.

Factor Conditions in Mississippi• Mississippi has a concentration of unskilled and semi-skilled workers in its workforce.• The percentage of skilled craft workers in Mississippi is below the national average.• Mississippi has a wage cost advantage in manufacturing over surrounding states.• Electricity costs for manufacturers are a competitive advantage of the state.• Proximity to customers and transportation cost advantages give north Mississippi an

advantage over south Mississippi in the production of plastics and rubber products.• Tax rates for the polymer industry in Mississippi are lower than those of surrounding

states.

Home Demand Conditions• Two significant factors in the global competitiveness of regional clusters are the

sophistication of customers in the home market and the level of local competition.• Local customers are the first to learn of innovations and therefore are ahead of

competitors with product and process improvements. • Mississippi’s growth in employment in polymers over the past four years has been

stronger than in any of the surrounding states and in most of the rest of the nation.• Mississippi has competitive advantages for resin refining and rubber products

production.• The Tupelo region has the strongest comparative advantage for growth in this industry

(rubber products for the furniture industry).• The polymer industry is tending toward increased concentration in favored locations, and

technical institutes (e.g., the Mississippi Polymer Institute) are becoming increasinglyimportant for processing and training assistance.

S.W.O.T. Analysis• Overall, Mississippi polymer companies are satisfied with their location.• Polymer firms in this state do not exhibit the strong geographic concentration found in

such states as Ohio and Indiana.• Community colleges in the state generally are perceived as providing satisfactory training

for this industry.• The Mississippi Polymer Institute, the USM School of Polymers and High Performance

Materials, the pultrusion technology program at the University of Mississippi, and theWood Products Lab at Mississippi State University offer a strong research foundation forthe polymer industry.

• The vinyl products industry in Mississippi has a complete supply chain present in thestate, giving it a significant competitive advantage.

• The state’s environmental regulation and permitting process is rated by local industry as acompetitive advantage.

• It is difficult to recruit skilled workers from other states in the polymer industry toMississippi due to its image as having poor public education.

• Upgrade training of existing workers in the state is inadequate to the need.• Many of the workers have poor reading and math skills, hindering their ability to be

trained for higher technical skills.• Several areas of Mississippi (especially in the areas containing casinos) are experiencing

shortages of labor in general.


• Some areas of Mississippi are subject to frequent power outages, which are a majorimpediment to a polymer/plastics operation.

• Mississippi has the potential for growth in thermoset resin production, plastics parts forthe automotive industry, new resins with dimensional stability for wood composites andvinyl decking, wood-polymer laminates, a variety of coatings, medical polymers andproducts, plastics plumbing fixtures, R&D for polymer packaging, and a number of morespecific industries.

• A national testing lab with ISO certification capabilities would be a major asset toMississippi firms.

• Mississippi polymer and plastics products firms which are labor cost driven will sufferfrom overseas competition.

Organizing Cluster Interests• Policy related to the growth of this industry should be driven by industry interests.• Membership-based groups are a better vehicle for industry involvement than

government-sponsored groups• The plastics and polymer industries have a need to make political leaders aware of their

significance.

Task 2: Workforce Development Analysis

The workforce development analysis consisted of, first, determining the availability and expertiseof the existing workforce (supply), including the identification of existing educational programs.Knowledge and skill requirements of the industry (demand) were then identified using focus groups androle expert interviews. These requirements include the roles that define work in the polymer industry,and the competencies required for those roles. The Mississippi Polymer Industry Competency Modelwas then developed to articulate the types of workers needed, improve employee recruitment andselection for hiring organizations, promote and influence industry education and training, and provideperformance management systems for existing industry employees. Areas in which supply and demanddo not meet were analyzed and human resource development strategies and career paths were developed.Recommendations to improve linkages between plastics and polymers companies and educationalinstitutions in Mississippi were made as well as for workforce development infrastructure improvements.

• Research findings suggest that there is a shortage of knowledge, skills, and abilitiesamong the state’s polymer industry labor pool.

• There are two types polymer work roles: Business Roles and Technical Roles. Businessroles include consultation, data management, financial analysis, human resourcedevelopment, information systems management, management, and marketing. Technicalroles include maintenance, materials planning, production, quality assurance, researchand development, risk assessment, and technical support.

• There are four categories of polymer competencies: technical, business, analytical, andinterpersonal.

• The core technical competencies are equipment-based computer skills, processing, resinand additive formulation, and technical communications.

• The core business competencies are business understanding, change management,organization, process management, project management, and time management.

• The core analytical competencies are decision-making ability, design of experiments,innovativeness, research skills, systems thinking, and troubleshooting.


• The comprehensive workforce development program for the cluster will include industryand educational partnerships, apprenticeship programs, certification programs,customized training, training incentives, and academic concentration areas.

• Petal High School is currently the only secondary school within the state that offers apolymer-specific vocational course, although vocational offerings in other secondaryschools teach students polymer-related material.

• All fifteen of the state’s community colleges provide industry training opportunities formanufacturing or business skills, and one community college currently offers a PlasticsTechnology program, and two community colleges conduct polymer-specificworkforce development activities.

• There is a deficiency in the number and enrollment of two-year degree programs (such asIndustrial Maintenance and Tool & Die) that have a strong correlation to the polymerindustry.

• Although The University of Southern Mississippi is presently the only university withinthe state that offers a degree program that is specific to the polymer industry, otherfour-year educational institutions in Mississippi offer degree programs that correlate withthe polymer industry.

Policy Recommendations

The following policy recommendations are based on best practices, the analysis of the strengthsand weaknesses of Mississippi, and feedback from existing industry and various state resources. Itshould be noted that these recommendations are in no particular order. In the future, it is anticipated thatthe private sector will expand and prioritize these recommendations.

Cluster Association• Mississippi Technology Alliance (MTA) should spearhead a polymer and plastics

association to promote networking within the industry and to create public awareness.This group could serve as a unified lobbying organization to stimulate new policy withinthe state legislature.

• Mississippi Development Authority (MDA) and MTA should financially support theannual Mississippi Polymer Conference, hosted by the USM School of Polymers andHigh Performance Materials, to promote the development of the cluster.

• Develop an online sourcing consortium to reduce the cost of purchasing materials,supplies, and equipment. Perhaps this could be done in cooperation with the MississippiContract Procurement Centers.

Workforce Training & Development• Articulate a comprehensive workforce development program that targets professional

development for engineers and senior technical staff, as well as technicians andoperators.

• Foster partnerships between two-year colleges, universities, and employers to designtraining programs specifically for the polymer industry.

• Utilize the newly formed cluster association to expand existing partnerships inMississippi and encourage businesses to request workforce development support fromthe Mississippi Workforce Development and Career Centers located at the state’s fifteencommunity colleges.

• Promote the implementation of apprenticeship programs as a workforce developmenttool for training providers, academic program developers, and human resource managers.


• Promote the implementation of certification programs to increase the knowledge baseand credibility of operations personnel within the polymer industry.

• Set up a state level training organization through the Mississippi Polymer Institutedesigned to work with community colleges to provide customized training.

• The state should develop interactive workforce development software to be used forpolymer-specific training in Mississippi businesses.

• Develop a system to motivate and subsidize individual workers in the industry to getadditional training.

• Promote polymer and polymer-related program offerings and related career paths toprospective students of community colleges.

• Explore the integration of nationally recognized curricula such as the process technologycourses developed by the Center for the Advancement of ProcessTechnology and the National Certification in Plastics offered by the Society of PlasticsIndustry (SPI).

• Undergo a cross-referencing of industry classification (SIC) codes to educational programclassification (CIP) codes for community colleges to identify linkages and / or gaps thatexist between industry needs and educational offerings.

• Encourage organizations to learn how to successfully integrate the Mississippi PolymerIndustry Competency Model.

Entrepreneurship• The programs and policies already in place at MDA and MTA should incorporate the

specific needs and interests of the polymer industry.• The polymer and plastics cluster association in tandem with MDA and MTA should create

a venture capital forum to create an environment, which encourages entrepreneurialdevelopment and investment in the polymer industry.

• Explore the feasibility of and encourage the creation of technology incubators proximate touniversity campuses to stimulate commercialization of spin-offs related to universityresearch in polymers and plastics.

• Provide incentives for in-state commercialization of patents produced at Mississippiuniversities. There are now 51 patents held by the Polymer Science faculty at USM, mostof which are related to environmentally friendly coatings. MSU and MU also hold patentsin polymer related areas with commercialization potential.

• Technology transfer programs such as the Mississippi Manufacturing ExtensionPartnership (MMEP) and the Mississippi Enterprise for Technology (MET) related tocommercializing research produced at the Stennis Space Center should be extended touniversity research or duplicated, if necessary, to help spin off university research.

Academic Support• Find funding to enhance the MMEP, MET, Mississippi Polymer Institute (MPI), MDA,

MTA and any other such state agencies which are active in assisting polymer relatedcompanies in Mississippi. A part of this recommendation entails seeking congressionalhelp in keeping and enhancing NIST funding and Mississippi Legislative funding whereappropriate.

• Find “enhanced” funding support for polymer related university research centers, such asthe University of Southern Mississippi School of Polymers and High PerformanceMaterials, the University of Mississippi Pultrusion Lab, and the Chemical Engineering andWood Products Research programs at Mississippi State University. This support could bein the form of matching grants for commercialization of new product developmentopportunities, which could create jobs in Mississippi.


• Find funding to design and establish academic concentration areas within the two-yearcollege system that support polymer and polymer-related industries.

• Explore the potential of an exchange among two year college and university faculty andprivate sector top-level managers (through sabbatical and executive leave time) toencourage collaboration and the fostering of new ideas.

• Encourage joint marketing to outside entities of the research capabilities of Mississippiuniversities to enhance research and development in the state.

• The state should explore collaborative opportunities among the fifteen community collegesto overcome recruiting restrictions currently bound by geographical limitations.

Research Consortium• Form a public/private research consortium including the state’s comprehensive research

universities to explore commercialization opportunities related to wood composites,medical devices, packaging, PVC products, coatings and adhesives, and thermoset resinproducts.

Image Enhancement of the State• Market the state’s polymer cluster by placing articles and testimonials in national

publications and by placing ads paid for by public/private sponsorship.• MDA, MTA, community colleges, universities and other state partners should work

together to put on a career fair to attract workers and to promote the state’s polymerindustry expertise and research capabilities.

Energy Reliability• Provide incentives to encourage utility companies to develop dual feeds to industrial parks

and to large electricity users located outside of industrial parks.• Develop policy to promote alternative fuels and processes such as natural gas, fuel cells,

back up power systems, etc.

Scrap and Recycling• Identify and stimulate a market demand for recycled polymer products.• Encourage state support of local recycling/sorting programs.

Cost Savings/Factor Driven Strategies• The MDA should enhance existing or create new targeted incentives and finance programs

to attract growth segments of the polymer industry, which are identified in the targetindustry section of this report.

• Explore the utilization of shared-use facilities by polymer companies as a means ofcompeting with international companies, which already employ shared-use facilitystrategies.

• Develop stronger existing industry support at all levels by raising awareness of existingprograms, which benefit the polymer cluster. MDA, MTA, MPI, utility company, anduniversity involvement in the cluster association would help in this regard.

In addition, recommendations were taken directly from polymer company private sectorinterviews. These are summarized in the Appendix.


PROJECT OVERVIEW AND METHODOLOGY

To study the polymer cluster, data were gathered using a variety of methods and a variety ofsources. Written survey instruments were designed and mailed to polymer companies, interviews wereconducted with polymer executives and researchers, and other parameters were obtained and used aswell.

The cluster definition was an extension of previous analysis by Michael Porter at HarvardUniversity and by Edward Feser at West Virginia University. Previous cluster studies were reviewed fora preliminary definition of the national polymer cluster. U.S. Input-Output data for 1997 was used toidentify supply-demand linkages among all of the chemical and plastics industries. Geographic patternswere then analyzed by correlating employment data for metropolitan areas. The metropolitan data is areflection of the regional scale of clusters and is an extension of Porter’s statewide analysis. This stepproduced a list of industries that were linked spatially, as well as through supplier-vendor relationships.

Refinement of the cluster definition for Mississippi data collected by the Bureau of LaborStatistics was adjusted to remove disclosures of individual company information. This data set providesthe number of establishments, employment, and payroll for each of Mississippi’s counties for 1989 and1999. These data were aggregated into regional sub-clusters using the regional assignments used by theMississippi Development Authority (MDA). The MDA definitions were compared to the Rand-McNallytrading area definitions and found to be identical, so researchers concluded that these regional definitionshave a commercial, as well as political, basis.

The primary data for the study consists of interviews and a survey of polymer companies. Theresearch team interviewed executives at polymer companies around the nation and selected faculty at theUniversity of Mississippi, Mississippi State University, Jackson State University, and the University ofSouthern Mississippi. These results were combined with the responses from polymer and plasticscompanies in Mississippi using a detailed questionnaire designed to probe the four points of Porter’sDiamond model. Additional Surveying was conducted for the Workforce Development section of thisreport (see Task 2).

This primary data was combined with secondary data from government and private sources,which include:

• Marketplace of Business (Dun and Bradstreet)• Comparative Statistics of Industrial Real Estate, 2000 (Society of Industrial Realtors)• Typical Bills and Average Rate Report, 2001 (Edison Electric Institute)• Metropolitan and State labor market statistics (U.S. Bureau of Labor Statistics, BLS)• Census of Manufacturing, 1997, Geographic report for Mississippi (U.S. Bureau of the Census)• Annual Survey of Manufacture’s, 1999 (U.S. Bureau of the Census)• Data supplied by the Society for the Plastics Industry (SPI)• Data and directories produced by Plastics News

Additional secondary data included databases and models developed by Taimerica ManagementCompany, including:

• Truckload transportation cost models based on current contract carrier rates and 1998 market populations• Database of patents compiled from published reports of the U.S. Patent and Trademark Office (U.S.P.T.O) and the National Bureau of Economic Research• Export reports by the U.S. Bureau of Economic Analysis (BEA)


• Skill and wage database compiled from state and metropolitan area occupational wage data (U.S. Bureau of Labor Statistics)

Findings were initially categorized as Strengths, Weaknesses, Opportunities, or Threats (SWOT).Policy recommendations were developed from these findings.


TASK 1

Ed BeeArdyn ThriffileyDavid Kolzow

Cluster Analysis


Section

2ATask 1: Cluster Analysis

POLYMER CLUSTER DEFINITION

With the state of Mississippi’s economic base vulnerable to declines in economic activity, thekey question is: Where should the state’s leaders “focus their efforts” as they work to build acompetitive, sustainable economy for the future? Thus, the strategic goal of this study is to assist inaccelerating Mississippi’s economic development by investigating the potential role that the polymerand plastics industries can play in the future of the state to aid the state’s leaders in their economicdevelopment policy and action.

The emergence of the New Economy, which is based on advanced technology, knowledge,and information, has stimulated many states and regions to shift away from traditional approaches toeconomic development that focus on individual industry sectors to a more comprehensive model thatis cluster-based. Industry clusters can be defined as geographic concentrations of competing,complementary, or interdependent firms and industries that do business with each other and/or havecommon needs for talent, technology, suppliers, and infrastructure. Clusters are considered“economic generators” because the firms within a cluster often sell their products or services outsidethe region, which generates new economic wealth for that region. This inflow of income works itsway through the local economy, and the multiplier effect of this cash infusion stimulates jobs andinvestment in other sectors of the economy as well.

Clusters, or agglomerations, of industries exist for a variety of reasons. Establishments maycluster near input suppliers to reduce the transportation costs associated with acquiring inputs, or theymay locate near customers to reduce transportation costs related to the distribution of their productsto customers. Establishments may also locate in clusters if this helps them become more productivethan establishments outside of clusters. Productivity will be higher in clusters if there are externaleconomies associated with clustering, or "clustering-related externalities." These are factors that arebeyond the control of the establishment but that affect the productivity of capital, labor, or both.

One of the key distinguishing characteristics of a true “cluster” is the degree to which a localindustry is able to evolve beyond its initial role and innovate into new areas. This occurs mosteffectively when states or regions have developed a source of leading-edge innovation, have anentrepreneurial culture, and have all the ingredients in place to support new start-up companies,including venture capital, small business assistance, and an adequate supply of senior managementskills.

Michael Porter, in his book The Competitive Advantage of Nations (1990), suggests that tofind answers on the competitiveness of nations, you must focus on specific industries and industrysegments. This understanding of industry clusters can be critical in making effective public policydecisions in such areas as education and training, science and technology, and infrastructureinvestment. Similarly, such an understanding of industry clusters can help in shaping andimplementing a state or local economic development strategy. Porter proposes four key determinants


OUR DEFINITIONof competitiveness, which he calls the “Diamond of Advantage,” based on cases from around theworld.

Porter's framework consists of four cluster characteristics of local decision environments thataffect the competitive advantage of individual firms (the individual firm is the focus ofmicroeconomics).

Michael Porter's Diamond of Advantage:

1) Specialized or advanced factor conditions, which benefit a particular industry or group ofindustries rather than generalized factors that benefit any industry. These include aspecialized labor pool, specialized infrastructure, availability of appropriate real estate, thelocal stock of knowledge with a particular emphasis on technology, research institutions,capital availability, and sometimes, selective disadvantages that drive innovation toovercome various obstacles. These specialized factors require a considerable level ofsustained investment and are difficult to duplicate. If a region has them, it has a competitiveadvantage over those regions that don’t possess them.

2) Home demand, or local customers who push companies to innovate, especially if their tastesor needs anticipate global demand. Industries tend to start with a local base of customers,who create demand and drive initial market efficiencies. The size of home demand, whileimportant in some circumstances, is generally far less significant than its character.

3) Related and supporting industries:Competition among local suppliers for related industriescreates a high quality, supportive business infrastructure, and spurs innovation and spin-offindustries. These related and supporting industries share common technologies, inputs,distribution channels, customers or activities, or provide products that are complementary.Suppliers and end-users located near each other can take advantage of short lines ofcommunication, a quick and constant flow of information, and a continuing exchange ofideas and innovations. Competitive advantage occurs in industry clusters that aregeographically concentrated, making the interactions closer and more dynamic. Ultimately,the health of the cluster is important to the health of each company operating within it.

4) Industry strategy/rivalry: Intense local rivalry among local industries that is more motivatingthan foreign competition and a local culture that influences individual industry’s attitudestoward innovation and competition. This fourth condition attempts to highlight the structuralelements of an industry that effect rates of success or failure. This can even spur cooperationin some respects to keep business from seeking services in the same industry in a differentlocation. Industry rivalry attempts to determine if competition between firms stimulatesinnovation or aggravates attempts to acquire scarce resources.

Porter’s factor conditions of a sophisticated labor pool, relevant training, and sufficientinfrastructure have become the most crucial elements of an industry’s ability to thrive in the knowledge-based economy. First, employees may be encouraged to specialize in their skills, thereby forming ahighly qualified labor pool. Second, long-term education and shorter-term continuous training also arekey factors to an industry’s ability to remain innovative. In addition, the access to specializedinformation also is enhanced within a cluster. Extensive, market, technical, and competitive informationaccumulates within a cluster, and members generally have preferred access to it. It should be pointed outthat four criteria for what constitutes a cluster include the following:

1) It should consist of multiple firms.

2) It should display some evidence of concentration in the region compared to other regions.

3) The industry should export (outside the region) much of its output.


4) It should demonstrate each of the aspects of a cluster in Porter’s diamond.

The core concept underpinning Porter’s Diamond Model is the centrality of innovation tosustained performance. The assumption with respect to a cluster is that a prime mover already existsthat drives the rest of the process. A fundamental characteristic is that they perform (i.e.,continuously upgrade factors and innovate) only under the pressure of competition and survival. Theproximity of competing firms further intensifies this pressure.

Plastics are polymers. What is a polymer? About two-thirds of all chemists and chemicalengineers are involved in the manufacture or application of polymers. Polymers as materials are almostubiquitous in our modern civilization. They can be man-made or natural. For example, wood iscomprised mainly of the polymers cellulose and lignin. Paper and cotton are cellulose. Sometimes, it ismore correct to refer to some polymers as macromolecules. Silk is an example of a macromolecule, as areall proteins. Natural polymers are derived from plant sources ranging from trees to seaweed; they can beproduced from unicellular organisms by fermentation and can even be extracted from shrimp and crabshells. Synthetic polymers are most commonly derived from oil, coal, or natural gas.

Most everyone is familiar with polymers by knowledge of polymer products such as:

• structural materials such as plastics, rubbers, and woods• film forming materials which are used in paints, adhesives and hairsprays• water-soluble polymers which are used as thickeners, lubricants, adhesives, flocculants, and

dispersants

Many homes are clad and painted with polymers. Polymers are finding a dominant role instructural and decorative materials for land, sea, and air transportation vehicles. Most consumer productscontain polymers and are packaged in polymers. In addition, it is to be noted that the most commonpolymers are easily recyclable.

The Polymer Cluster


THE MISSISSIPPI POLYMER CLUSTER

Polymers affect every day of our lives. These materials have so many varied characteristicsand applications that their usefulness can only be measured by our imagination. Polymers are thematerials of past, present, and future generations. Definitions of polymers can be found in theappendix section of this report.

The polymer and plastic industry has grown exponentially in the U.S. over the last 40 years.Because of this growth the polymer cluster has become quite complex with an array of suppliers, supportservices, and companies making intermediate products.

Defining the cluster is the first step in a cluster analysis. A variety of previous studies of plasticsclusters were studied including those of Michael Porter, before settling on a definition that fits theMississippi industry. Our approach extends Porter’s work by examining industry patterns at the regional,rather than statewide, level (statewide data does not fit the geographic scale of most clusters and fivestates account for 35 percent of the variation in the distribution).

To define the Mississippi cluster, a correlation of employment data were compared for 334Metropolitan Statistical Areas (MSAs) (using data from Dun and Bradstreet’s Marketplace CD) with thesupplier and market links in the 1997 edition of the Input-Output Tables of the U.S. This 454 sector tableis detailed enough to identify key suppliers and support services within the polymer cluster.

What emerges is a group of 31 industries that are interconnected in the production of plastics andpolymer products. The value chain begins with oil and gas production (SIC Codes 1311 and 1321 on thecluster diagram in Figure 1) and moves through the final level of production of consumer and industrialgoods. The cluster consists of seven sub-clusters that are geographically interconnected:

1. Refining and plastic resin production located on the pipeline grid that supplies feedstocks(often done on the same plant site)

2. Suppliers and support services for the resins subgroup3. Plastic products companies located in geographic proximity to their customers4. Synthetic rubber producers5. Rubber products companies located in geographic proximity to their customers6. Organic fibers, which are not bound by location7. Coatings and adhesives


Figure 1: Plastics and Polymers Cluster

Table 1:Table 1:Cluster Growth in Mississippi between 1989-1999

The state of Mississippi has seen employment growth in the overall cluster and also in four of theseven sub-clusters (Table 1). The cluster growth rate of five percent in Mississippi is above the nationalgrowth rate between 1989 and 1999.

The organic fibers business is the newest to the state and among the fastest growing. Virtually allof the Mississippi employment in this subgroup has been added in the last decade. The rubber productsgroup, the second largest sub-cluster, has grown much faster than the other sectors and accounts for two-thirds of the aggregate growth in the statewide cluster. Since much of the employment in this group islocated in the Tupelo area, it is surmised that the growth is tied to the furniture industry in NortheastMississippi.

While Mississippi’spolymer cluster has grownrelative to the U.S. in the lastdecade, some industries havegrown while others havedeclined in employment. Thedecline, relative to the US, hasbeen in synthetic rubber andsome rubber products (SICs2822, 3052, 3053), in feedstocksand materials (SICs 2865, 2816,2843, & 2855) and in someplastic products (SICs 3081,

3084, 3085, and 3088). The refining and resins subgroup has grown relative to the U.S. average duringthe same period.

The overall cluster has seen a growth of 14 companies (about one per year) and an expansion ofmore than 1200 jobs and $250 million of payroll during the decade. Companies in the polymer andplastics companies now generate $700 million per year of wages in Mississippi companies. The averagewage in the Mississippi polymers is over $36,000, over 25 percent higher than the average wage inmanufacturing in Mississippi in 1999. Only the papermaking industry in Mississippi has higher wages.This does not include several recent locations of polymer companies in the state.

Source: Derived from ES-202 data

2


Tabl

e 2:

Mis

siss

ippi

Pol

ymer

-Pla

stic

s C

lust

er D

evel

opm

ent b

y In

dust

ry S

ecto

r 198

9-19

99


Figure 2: Mississippi Polymer-PlasticIndustry Employment Regions, 1999

Regional Breakdown by Sub-ClusterSince clusters are a regional

phenomenon, Mississippi’s eightregions have distinct structures intheir polymer clusters (Figure 2).The northern counties, with betteraccess to national and regionalmarkets, focus on plastic and rubbergoods for consumer and industrialcustomers. The Gulf Coast, bycontrast, focuses on raw materials,synthetic rubber, and resins. TheHattiesburg MSA has a strongconcentration in plastics products andparts manufacturers.

In 1999, the Tupelo regionhas the largest employment inpolymers, followed by the Gulf Coastand the Jackson-Vicksburg area(Figure 3). Each of the regions inMississippi, therefore, has differentpriorities and concerns in terms ofdevelopment of their respectiveclusters. Center for Community and Economic Development, 2002

Figure 3: Polymer-Plastic Cluster Employment by Region


Innovation Driven Strategies

Industry Strategy and Rivalry

BASIC STRATEGIES IN PURSUING GLOBAL COMPETITIVENESS

Section

2B

Michael Porter demonstrated the role of firm strategy and rivalry in global competitiveness inThe Competitive Wealth of Nations. This factor is one of the points in Porter’s diamond model. Lookingat how firms are created, organized, and managed is central to understanding this factor. Firms managetheir affairs using one of four strategies:

• Innovation driven strategies (built around newly patented processes and technologies)• Investment driven strategies (built around investing to achieve economies of scale and process

improvements)• Factor driven strategies (built around lowering production cost)• Wealth driven strategies (built around creating dividends and maintaining the status quo)

The industrial structure of a cluster’s industries is an important characteristic of firm strategy andrivalry as well. Successful firms in capital intensive industries with economies of scale adopt differentstrategies than small family owned firms so the size and ownership of companies is an element that mustbe analyzed.

Industrial structure is a critical component of cluster analysis that has often been ignored.Cluster strategies built around collaboration and cooperation work well in some industries and fail inothers.

Patents are the single best measure of innovation in industry. Patent comparisons give a basis formeasuring the level of innovation within regions. Mississippi companies trail the nation in terms of theirpatent activity in polymers. The most concentrated metro areas in terms of patent activity are BatonRouge, Akron, Minneapolis, Houston, Cleveland, and Cincinnati. Hattiesburg is the only MSA inMississippi with a patent concentration above the national average (Table 3). The conclusion from thispatent analysis is that Mississippi companies are not at the leading edge of innovation in the field,although there is a significant amount of patent activity at The University of Southern Mississippi(USPTO, 2001).

Innovation driven strategies offer firms the best competitive advantage in global markets sincepatent laws often protect innovations. Analysis of polymer patents awarded between 1995 and 1999shows that few Mississippi firms are prolific innovators (Table 4). Just four of the 350 companies in theMississippi polymer complex have been granted three or more patents in the polymer areas since 1995.By contrast, the United States had over 2400 companies with three or more patents awarded in thisperiod. While Mississippi represents nearly one percent of the nation’s polymer and patent employment,its companies and research institutions generate just 0.15 percent of the new intellectual property in thissector (Census Bureau, BEA, 2001).


Table 3: Polymer Patents in Mississippi 1995-1999


In 1999, the top 80 companies in the U.S. had more patent activity in polymers than allinstitutions in Mississippi combined. Research and development is highly concentrated within thepolymer industry, however. The top 100 companies produce 37 percent of all patents while the top 250produce half. Another measure of innovative capacity is the occupational structure of the polymerworkforce since innovative companies employ more scientists and engineers than their peers. Theoccupational structure in Mississippi confirms the findings from the patent analysis. Mississippi’sworkforce is far below national norms in the number of R&D occupations of chemical engineer andchemist (Table 5).

Table 6: Exports ofPlastic Products(as % of production 1999)

A third measure of innovation driven strategies is the exportintensity of Mississippi companies. Innovative companies are muchmore likely to serve global markets. While Mississippi companiesare far stronger exporters than their peers in Arkansas and Alabama,they trail national norms, and they also trail the performance of theirpeers in the states with sophisticated polymer clusters (Table 6). Ouranalysis of D&B data for Mississippi suggests that just 32 of the 346companies in the polymer cluster are exporters, also low by nationalstandards.

The conclusion is that few companies in Mississippi employinnovation driven strategies.

Table 4: Major Polymer R&D Centers

Source: United States Patent and Trademark Office, 2001


Tabl

e 5:

Con

cent

ratio

n of

Str

ateg

ic O

ccup

atio

ns in

Pol

ymer

s-Pl

astic

Indu

stry

199

9


WEALTH-DRIVEN STRATEGIES

The vast majority of Mississippi companies follow factor driven strategies. For firms with thisstrategy, lower operating costs are the basis for building competitive advantage. Tactics to enhance thisstrategy also might include lower cost of acquiring capital or lower capital investments through sharingof facilities or through better utilization of facilities. It also may include targeted incentives to encourageinvestment or job growth.

The concern with this strategy, however, is that it leaves the state susceptible to intensecompetition from third world nations like Mexico and Honduras that can offer production sharingarrangements. While these countries have historically lacked a stable base of electric power generation,the privatization of electric power is removing this competitive barrier. Mississippi must find ways ofassisting its companies to adopt more sophisticated competitive strategies in global markets.

Investment based strategies are an excellent method of establishing global advantages inindustries with significant economies of scale. Among the sub-clusters in Mississippi, these strategiessuit the resins, refining, and materials industries. The tire industry is another example of an industrywhere such strategies are warranted. The capital investment picture is the best measure of how wellMississippi industries have fared over the last decade.

The presence of sophisticated skilled blue-collar occupations is another measure of investment-based strategies since companies that have this orientation find ways to replace unskilled labor withsophisticated human talent. Mississippi has a number of unskilled occupations in its mix of polymerskills (Table 2). The largest concentrations of strategic occupations are in the unskilled areas: machinetenders, machine feeders, industrial truck operators, and molding and extruding machine operators. Theskilled blue-collar occupations of CNC tool operator, tool and die maker, and chemical technician are farbelow the concentrations in the national workforce.

The workforce data suggest that very few Mississippi companies are following investment drivenstrategies.

Investment Driven Strategies

Factor Driven Strategies

Wealth Driven StrategiesWhen markets quit growing, some companies resort to wealth driven strategies. Wealth driven

strategies focus on preserving dividends to investors through the curtailment of investments in new plantsand in research. Wealth driven companies are more prone to close plants and to institute frequentlayoffs, to preserve cash flow to investors, than to grow through acquisitions or through the developmentof new factories. The focus of wealth driven companies is survival, not growth. Many industries inBritain prior to 1990, such as liquor and cigarettes, are the best examples of wealth driven strategies. Ifallowed to continue, wealth driven strategies lead to an eroding position in world markets and aneventual movement of fixed assets like factories and equipment into financial assets like bonds andstocks of other corporations.

Wealth driven strategies in Mississippi are most often present when control of local companiesmoves into a second or third generation of family leadership or when the founders reach retirement ageand are less prone to incur long-term investments in plant and equipment. Wealth driven strategies arenot terminal however. Companies with wealth driven strategies often move into factor driven orinvestment driven strategies when acquired by out-of-state public firms. The young age of polymercompanies in Mississippi (few are over 30 years old) suggests that few are pursing wealth drivenstrategies— although it is impossible to measure directly the frequency of wealth driven strategieswithout a personal review of each company.


Company Age

Company Ownership

OTHER FACTORS THAT IMPACT COMPETITIVE ADVANTAGE

The age of companies is an excellent measure of entrepreneurial activity. Since youngercompanies tend to be more innovative and leaner in production costs, they tend to have competitiveadvantages in global markets. The analysis of employers by age confirms the findings from the analysisof industrial structure. Mississippi has much less entrepreneurial activity in resins and materials than hasbeen seen in Texas or Arkansas (Figure 4). While just seven percent of the Mississippi employment inthe materials and resins groups stems from facilities created in the last five years, the ratios in Texas andArkansas are between 40 and 60 percent.

The level of activity in the plastics and rubber products sub-clusters is virtually identical to thepattern in states with larger concentrations of polymers, however. Only in Tennessee has there been moreentrepreneurial development in rubber products than in Mississippi. The growth in Tennessee probablystems from the expansion of auto assembly by Nissan and Saturn during the last five years.

Mississippi has done well with the growth and development of the plastic and rubber productssub-clusters in northwest and northeast Mississippi but has not done well in the entrepreneurialdevelopment of the resins refining and materials sub-clusters in south Mississippi. There is greatopportunity for new entrepreneurial activity in coatings and adhesives, utilizing technology and patents atUSM. Potential also exists for commercialization of research in wood products related adhesives andwood/plastic composites at MSU, and in new plastics being developed by certain private research groups.

The ownership of a company is important in establishing its goals and objectives. Privateownership offers companies flexibility in managing their production and in seizing new marketopportunities, but public companies have more options for acquiring expansion capital than privateconcerns. Ownership patterns are another factor in the competitive strategy of a state.

The D&B database was used to determine the ownership of polymer cluster companies inMississippi. The table below shows the ownership pattern.

EmployeesCategory Number Public Co. (#) (% of Total)Branch Plant 131 42 41%Headquarters 32 1 9%Single Locations 181 3 58%

Mississippi has few headquarters. About two-thirds of the companies within the polymer clusterare controlled by Mississippi entrepreneurs while the remainder are branch plants controlled from outsidethe state. The state has few public companies outside the branch plants. The ownership statistics suggestthat Mississippi companies are less likely to have the resources to employ innovation driven orinvestment driven strategies.

Comparable figures are not available for other states. The large proportion of polymercompanies controlled by in-state owners is certainly an advantage for the economic development ofMississippi, and offers potential for expansion within the state.


Figu

re 4

: N

ew P

olym

er C

ompa

ny E

mpl

oym

ent


CONCLUSIONS

Company Structure and SizeThe size of companies is an important factor in competitive advantage. Some industries, such as

refining and tire production, require large investments and scale to achieve global competitiveness whileothers such as the production of plastic products, have different sources for global competitiveness.

Mississippi’s resin and materials companies are smaller than their peers. Since scale economiesare an important determinate of global competitiveness in this sector, Mississippi companies appear tohave less global advantage than their peers in states with more advanced polymer clusters.

Mississippi has a structure typical of advanced polymer states in the plastic products sub-clusterwhile the size of its rubber products companies is typical of advanced states like Ohio and Illinois.

Mississippi policy makers must understand the competitive dynamics of the companies in thestate’s polymer cluster. The state has seen great success with plastic and rubber products companies innorthern Mississippi, the resin refining and materials subgroups in southern Mississippi have seen lesssuccess; however, in recent years, the Hattiesburg MSA has seen tremendous growth in plastics productsmanufacturing, including injection molding. Mississippi policy makers should explore methods thataccelerate the adoption of corporate strategies based on innovation and investment.


As skilled blue-collar workers are the least mobile of all categories, skill shortages in this areaare the hardest to fill. College graduates, like engineers and chemists, frequently change locations toaccept employment, as do unskilled workers. Skilled blue-collar workers are much more difficult toattract to a new location.

Mississippi has a concentration of unskilled and semi-skilled workers in its workforce (Table 5).The concentration of skilled craft workers, such as tool and die makers, CNC programmers andmachinists, is under the national average.

High wages with low skill concentrations suggest a shortage of skilled labor. The data for labormarkets in Mississippi and surrounding states suggest that some of Mississippi’s labor markets (Biloxifor example) have a shortage of skilled workers and first line supervisors. Wages vary by the size oflabor market, with larger markets paying higher wages for the same work. Rural areas of Mississippishould have lower wage rates for unskilled work than Jackson, Hattiesburg, and Gulfport (wage rates forthese markets are not available from the BLS).

The wage rate prevailing in all of Mississippi’s labor markets for semiskilled occupations likehand packers and machine tenders are below those in surrounding states (Table 7). Mississippi has a costadvantage for the segment of the polymer cluster that is cost driven, as much as 20-25 percent comparedto New Orleans and Memphis. Since production wages are the largest component of production costs inthe plastic and rubber products sub-clusters, this relationship is a key finding in terms of the viability ofmaintaining cost driven strategies in polymer industries. However, low wages are not a long-range viablealternative for increasing the state’s standard of living.

Factor Conditions In MississippiFACTOR CONDITIONS

Section

2C

Since much of Mississippi’s success in polymers has been built on cost driven strategies, factorconditions in Mississippi are the most important variables in an analysis of the cluster. Among thefactors that are traditionally important within the sub-clusters are the following:

• Availability of workers with critical industry skills, such as tool and die makers, chemicaltechnicians, and chemical engineers

• Cost of unskilled labor• Cost and quality of electrical power• Transportation cost and service quality for distribution• Transportation access• Availability of support services and raw materials• Taxes and indirect costs• Cost and quality of industrial real estate and industrial buildings

Availability of Skilled Workforce

Cost of Unskilled Labor


Tabl

e 7:

Occ

upat

ions

Com

paris

on


Electric power rates are an important cost of production in resin making, refining, molding, andextruding. About one percent of production costs in refining and petrochemicals are for purchasedelectricity. Materials industries, such as pigments, have higher power requirements, often three percentof shipments. Molders and rubber producers are in the range of 1.5-2.0 percent. A more useful way oflooking at power costs is to compare it to the largest geographically variable cost: production labor.Power cost is 75 percent of production labor costs in refining and 13 percent of production labor costs inmolding. All of the sub-clusters are sensitive to electric power costs and reliability. Power is the materialinput in which cost can be most easily controlled through location (EEI, 2001).

Electric utility rates for industrial customers in Mississippi and surrounding states, as well as inseveral major polymer centers in the Midwest, are outlined in Table 8.

Mississippi has as much as a 30-50 percent advantage to locations in surrounding states includingBaton Rouge/Lake Charles, Houston, Chicago, and Cleveland. The rates in Alabama and Tennessee arecompetitive or slightly lower at all load levels, however.

The overall assessment is that Mississippi’s power rates are, for the most part, very competitive.It is understood that electric power rates can be negotiable for power users, and therefore it is difficult tomake definate statements with regard to estimated costs.

Table 8: Electric Industrial Rate Comparison

Cost and Quality of Electrical Power


Each of the sub-clusters has a much different sensitivity to the influence of shipping costs onprofitability. Resin companies sell their product on a freight paid basis. This sub-cluster is not sensitiveto shipping cost differentials. On the other hand, plastic products companies, especially those thatproduce shapes and profiles, are quite sensitive to the influence of shipping costs on profits.Approximately a third of plastic and rubber products are shipped less than 100 miles while the majoritiesare shipped less than 250 miles.

Mississippi’s regions vary greatly in their shipping cost advantages. For national markets servedby truck, Memphis and Northwest Mississippi have a 10-20 percent cost advantage over other areas ofMississippi (Figure 5). Mississippi is not well positioned for serving the regional markets that center onAtlanta (Figure 6) or Dallas (Figure 7).

The trucking cost differential between north Mississippi and south Mississippi suggests that thenorthern regions offer a stronger competitive advantage for plastic and rubber product companies thatship to mid-America markets. Companies in these regions should continue to build a base of regionalcustomers within 150 miles of their locations, the area of strongest advantage.

Transportation Costs and Service Quality


Figu

re 5

:

Thes

e cos

ts ar

e for

serv

ing

war

ehou

ses w

ith co

nsum

er d

urab

les d

eliv

ered

in tr

uckl

oad

ship

men

ts. T

ruck

ing

cost

sar

e cu

rren

t as

of e

arly

200

1. S

hipm

ents

are

pro

porti

onal

to c

onsu

mer

pop

ulat

ion

in e

ach

of th

e R

and

McN

ally

Maj

or T

radi

ng A

reas

. P

last

ic o

r rub

ber p

rodu

cts t

hat a

re p

art o

f an

asse

mbl

y us

ed b

y ot

her m

anuf

actu

rers

will

not n

eces

saril

y ha

ve th

e sa

me

cost

dis

adva

ntag

e, d

epen

ding

upo

n th

e lo

catio

n of

fina

l ass

embl

y.


Figu

re 6

:

Thes

e co

sts

are

for s

ervi

ng w

areh

ouse

s w

ith c

onsu

mer

dur

able

s de

liver

ed in

truc

kloa

d sh

ipm

ents

. Tru

ckin

g co

sts

are c

urre

nt as

of e

arly

200

1. S

hipm

ents

are p

ropo

rtion

al to

cons

umer

pop

ulat

ion

in ea

ch o

f the

Ran

d M

cNal

ly M

ajor

Trad

ing

Are

as.

Plas

tic o

r rub

ber p

rodu

cts t

hat a

re p

art o

f an

asse

mbl

y us

ed b

y ot

her m

anuf

actu

rers

will

not

nec

essa

rily

have

the

sam

e co

st d

isad

vant

age,

dep

endi

ng u

pon

the

loca

tion

of fi

nal a

ssem

bly.


Thes

e co

sts

are

for s

ervi

ng w

areh

ouse

s w

ith c

onsu

mer

dur

able

s de

liver

ed in

truc

kloa

d sh

ipm

ents

. Tru

ckin

g co

sts

are c

urre

nt as

of e

arly

200

1. S

hipm

ents

are p

ropo

rtion

al to

cons

umer

pop

ulat

ion

in ea

ch o

f the

Ran

d M

cNal

ly M

ajor

Trad

ing

Are

as.

Plas

tic o

r rub

ber p

rodu

cts t

hat a

re p

art o

f an

asse

mbl

y us

ed b

y ot

her m

anuf

actu

rers

will

not

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rily

have

the

sam

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st d

isad

vant

age,

dep

endi

ng u

pon

the

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tion

of fi

nal a

ssem

bly.

Figu

re 7

:


Tax rates and tax policy are important cost factors for capital-intensive businesses. State andlocal taxes may consume 3-5 percent of revenues and assets in such businesses. With after tax profitmargins of 5-9 percent in plastics and chemicals, local taxation can be an important determinate of plantlocations.

The tax rates in Mississippi are generally lower than those in surrounding states on those taxitems in which the polymer industry is most sensitive: sales tax on new equipment and electricity, andcorporate income tax (Table 9). Real estate taxes in Mississippi’s largest metro area are comparable tothose in surrounding states (Table 10). Because each of the surrounding states has corporate tax credits,property tax and sales tax exemptions, the net effect is that neither Mississippi nor its surrounding stateshave any comparative advantage or disadvantage in state and local taxes. Whether a company findsMississippi more advantageous from a tax standpoint is a function of the characteristics of the individualproject.

The innovativeness of companies within a cluster is further enhanced by the ability to readilyfind and obtain what is needed to implement innovations more quickly. Local suppliers and strategicpartners can and do get closely involved in the innovation process, thus ensuring a better match withmarket demand.

Many product manufacturers are moving toward increasing the recyclability of their productswhen their useful life is over. For example, BMW claims that almost their entire automobile is nowrecyclable. In Europe, recyclability has entered the regulatory arena, and such changes are expected inthe United States over the next several years.

Availability of Support Services and Raw Materials

Tax Rates and Tax-Regulation Policy


Tabl

e 9:

Com

paris

on o

f Bas

ic B

usin

ess

Taxe

s

Tax

Mis

siss

ippi

Al

abam

a Ar

kans

as

Loui

sian

a C

orpo

rate

Inco

me

3% o

n th

e fir

st $

5,00

0 of

ta

xabl

e in

com

e; 4

% o

n ne

xt $

5,00

0; a

nd 5

% o

n th

at in

exc

ess

of $

10,0

00.

6.5%

for t

hose

filin

g af

ter

12/3

0/00

(prio

r to

tax

was

5%

); co

. with

sal

es u

nder

$1

00,0

00 p

ay ¼

of 1

% o

f sa

les

volu

me.

1% o

n fir

st $

3,00

0; 2

%

on 2

nd $

3,00

0; 3

% o

n ne

xt $

5,00

0; 5

% o

n ne

xt

$14,

000;

6%

on

next

$7

5,00

0; 6

.5%

on

amou

nt in

exc

ess

of

$100

,000

.

4% o

n fir

st $

25,0

00; 5

%

on 2

nd $

25,0

00; 6

% o

n ne

xt $

50,0

00; 7

% o

n ne

xt $

100,

000;

and

8%

am

ount

ove

r $20

0,00

0.

Fede

ral i

ncom

e ta

x is

de

duct

ible

whe

n co

mpu

ting

net t

axab

le

inco

me.

No

corp

tax.

Fran

chis

e D

omes

tic &

fore

ign

co.

pay

$2.5

0 pe

r $1,

000

of

capi

tal,

surp

lus,

und

ivid

ed

prof

its &

true

rese

rves

.

Dom

estic

co.

pay

$10

on

each

$1,

000

of c

apita

l st

ock;

fore

ign

pay

$3 p

er

$1,0

00.

Dom

estic

& fo

reig

n co

. pa

y 0.

27%

of p

ar v

alue

of

out

stan

ding

cap

ital

stoc

k. M

axim

um ta

x of

$1

,075

,000

.

Dom

estic

& fo

reig

n co

. pa

y $1

.50

per $

1,00

0 on

1st

$30

0,00

0; $

3 pe

r $1

,000

ove

r $30

0,00

0 ba

sed

on th

e la

rger

of:

(1

) ass

esse

d va

lue

of

real

& p

erso

nal p

rope

rty;

or (2

) por

tion

of is

sued

&

outs

tand

ing

capi

tal

stoc

k, s

urpl

us, u

ndiv

ided

pr

ofits

, & b

orro

wed

ca

pita

l.

Dom

espa

y th

e0.

25%

ca

pita

l ta

xabl

esu

rplu

sgr

oss

reth

an $

1

Sale

s &

Use

Ta

ngib

le p

erso

nal p

rope

rty

sale

s ta

x is

7%

; m

anuf

actu

ring

mac

hine

ry

is 1

½%

; con

stru

ctio

n co

sts

3 ½

%; i

ndus

trial

el

ectri

city

and

fuel

s 1

½ %

. N

o lo

cal s

ales

tax.

4% o

n ta

ngib

le p

erso

nal

prop

erty

; 1 ½

% o

n m

achi

nery

. L

ocal

sal

es

taxe

s ca

n ra

nge

from

0.

5% to

5%

.

5.12

5% o

n ta

ngib

le

pers

onal

pro

perty

and

so

me

serv

ices

. L

ocal

sa

les

taxe

s ra

nge

from

0.

25%

– 3

%.

4% o

n ta

ngib

le p

erso

nal

prop

erty

. Lo

cal s

ales

ta

xes

rang

e fro

m 4

% to

5.

25%

.

6.25

%

pers

ona

leas

es/

serv

ice

Loca

l sbe

up

to2%

. Pr

oper

ty

No

stat

e pr

oper

ty ta

x. A

ll ci

ty a

nd c

ount

y re

al a

nd

pers

onal

pro

perty

as

sess

ed a

t 15%

of f

air

mar

ket v

alue

.

No

stat

e pr

oper

ty ta

x. A

ll ci

ty a

nd c

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Industrial Real Estate Cost and Availability

Transportation Access

Table 10: Industrial Space Costs and Vacancy, 2000

Real estate is an important cost factor in polymer projects. While resin and refining companiesand most of the material suppliers have specialized needs, they do not look for vacant space whenlocating projects. Polymer companies on the other end of the value chain, however, often look for vacantindustrial space. Space costs and vacancy are important factors for the development of rubber and plasticproduct companies. Jackson,the state’s largest real estatemarket, is competitive withmarkets in surrounding states interms of lease and purchaseprices. The Jackson market ismore expensive for newconstruction, however (Table10). Industrial constructioncosts are typically lower insmaller communities reflectlower land and developmentcosts. It can be concluded thatrural Mississippi has acomparative advantage in termsof this factor cost, provided anadequate inventory of vacantspace is available.

Refiners and resin makers require rail, pipeline, and truck transportation for their operations.Many refineries also have access to deepwater ocean terminals. This factor is of growing importance asthe majority of crude oil is now imported into the U.S. Since maritime commerce on the MississippiRiver is limited to points below Baton Rouge, the most feasible sites for new refining, petrochemical, andresins production are water sites in Hancock, Harrison, or Jackson Counties.

Polymer companies at the opposite end of the value chain have different transportationrequirements. The larger facilities receive resins by rail hopper car exclusively and make 75 percent oftheir shipments via truck. Although much of the demand for these products is within 100 miles, highwayaccess is an important consideration for developing companies that are oriented toward global or nationalmarkets. Proximity to an interstate highway often is a siting requirement for such facilities.


Table 11: Summary of Factor Conditions

CONCLUSIONS

Mississippi’s comparative advantage for development of polymers varies by sub-cluster (Table11). Resins, materials and synthetic rubber often have a power cost advantage over companies inLouisiana. The plastic and rubber sub-cluster has comparative advantages in several important factors.The analysis suggests that this sub-cluster will continue to develop in Mississippi provided the state doesnot lose its cost advantages to third world nations. Enhancements to training programs and improved 4-lane highway access in Mississippi are policy solutions that would improve the competitiveness ofMississippi and would allow companies to expand markets and to attract companies with investment orinnovation driven corporate strategies. Rail and 4-lane highway access are critically important topolymer companies, so continued improvements to the rail and highway system throughout the state areimportant policy concerns.


Home Demand Conditions andRelated and Supporting IndustriesINTRODUCTION

Section

2D

Two significant factors in the global competitiveness of regional clusters are the sophistication ofcustomers in the home market and the level of local competition. Both factors lead to product andprocess innovations that improve the cluster’s competitiveness. Local customers are the first to learn ofinnovations and therefore are ahead of competitors with product and process improvements. Homedemand conditions are therefore a critical component in a cluster analysis.

Microeconomic conditions in the local market are measured through indirect methods, such ascomparative growth trends. Whether Mississippi is gaining in polymer employment, relative tosurrounding states and to the national economy, is the best single measure of the competitiveness of thelocal economy. The concentration of polymers within the local economy is the second importantmeasure of home demand conditions.


COMPARISON WITH SURROUNDING STATES

Mississippi’s growth in polymers over the last four years has been stronger than growth in any ofthe surrounding states (Figure 8). In the broad industry sector of plastic and rubber products (SIC 30),Mississippi’s growth rate of 20 percent between 1992-97 places it among the top fourth of all 50 statesand above its neighboring states. Mississippi’s growth in chemicals and plastics (SIC 28) during theperiod places it among the top third of states during the period. Mississippi’s growth in chemicals andplastics occurred in an era where the nation and the larger producers (Texas, Louisiana, Illinois) saw adecline in employment.

Although Mississippi’s employment in the polymer cluster is lower than neighboring states, itsgrowth rate is significantly above the national average.

Figure 8: Polymer Cluster Performance in MS and SurroundingStates 1997-2000

The plastic products and rubber products sub-clusters are much more important in the share ofemployment in Mississippi than in any of the surrounding states except Tennessee ( Figure 9). Louisianais completely different in the composition of its polymer cluster, with significant employment inmaterials, resins and synthetic rubber production.

All of the sub-clusters in Mississippi, except for plastics products, have seen employment growthover the past four years (Figure 10). While the materials and resins-refining groups have declined inemployment in Tennessee, Louisiana, and Alabama, these sub-clusters have remained stable in Mississippi.

Comparison with Surrounding States


Figure 9: Polymer Employment by Sub-Cluster, 2000

Figure 10: Employment Growth by Sub-Cluster 1997-2000

Source: ES-202 Data, 2001


Mississippi has comparative advantages for refining-resin manufacturing and rubber productsproduction (the materials sub-cluster that is geographically linked to resins and refining has a similarcomparative advantage). Mississippi’s concentration of employment in plastics products and syntheticrubber suggests that these sub-clusters have relatively weak comparative advantage in global markets(Table 12).

Figure 11: Mississippi Polymer Cluster by Region

SPECIALIZATION AND SUB-CLUSTER GROWTH IN MISSISSIPPI

Table 12: Cluster Specialization in Mississippi 1999Clusters withcomparative advantage, intheory, should grow fasterthan those that lack it.Employment growth ratesin Mississippi confirm thetheoretical pattern (Figure11). Sub-clusters whereMississippi has acomparative advantage,such as resins-refining andrubber products, havegrown faster than theirnational counterparts.

Three of the nine regions of Mississippi saw strong growth in their polymer clusters, while sixlagged the national average. The concentration of rubber products companies in the Tupelo area is thesource of rapid growth in that region. Much of the demand for rubber products in Tupelo is connected tothe furniture industry. The Tupelo region is the regional cluster with the strongest comparative advantageof all regions. The resins and refining sub-cluster along the Gulf Coast has seen relatively strong growthas well. Hattiesburg has shown substantial increase in plastics employment since 1999.

Specialization and Sub-cluster Growth in Mississippi

Regional Change Analysis


CONCLUSIONS ON HOME DEMAND CONDITIONS

RELATED AND SUPPORTING INDUSTRIES

INDUSTRY INTELLIGENCE PROFILES: LINKAGES AND NETWORKS

One of the recent trends facing the polymer industry is the geographic trend towardagglomeration. Traditionally widely dispersed, some plastics products manufacturers are finding safety innumbers. Several states (Ohio, Indiana, Michigan, and, to a lesser degree, North Carolina) are benefitingfrom a geographic concentration of plastic investment activity. These major trends are all interrelated, sothe cost pressures and the need for technological skills, noted later in this report, support agglomeration.

Other geographic trends include the creation and support of technical institutes devoted topolymers and plastics processing, and efforts to assist firms with workforce development. Plasticsprocessors face real issues arising from these geographic trends. They must be in locations that provideand support a technical workforce. They must face the cost issues associated with a particular location.As the customer base moves, the transportation cost problem must be addressed.

The Mississippi Polymer Institute, discussed in detail later, was created by the MississippiLegislature to provide the technical assistance and product prototyping assistance necessary makeMississippi’s polymer/plastics industry competitive. The approval rating of MPI assistance is extremelyhigh but cuts in funding in recent years are hampering its ability to provide timely assistance toMississippi industry.

Porter’s theory suggests that conditions in the home market are an important component ofcompetitive advantage in global markets. The Porter model was developed to analyze national markets inglobal competition, not states within an interstate marketplace. Survey results from the polymer andplastics companies demonstrate that Mississippi customers are neither more nor less demanding thancustomers in other states (75 percent of polymer companies and 72 percent of plastics companies reportthat this is how they find home demand conditions).

The other aspect of home demand conditions is keen competition between companies. Thesurvey results demonstrate that both polymer and plastics companies in Mississippi are part of national orglobal markets. Ninety percent of polymer companies report that their marketplace is global or national;two-thirds of plastics companies report that they share global or national markets. Approximately onethird of the plastics companies, many of them located in the Tupelo area or in the coatings subcluster,report that their primary market is statewide. Growth of sophisticated local customers is the critical needfor these companies, especially those in the furniture or wood products industries. More completerecommendations on stimulation of home demand conditions are found in the Target Industries andSWOT sections of this report.

Plastics and polymer companies were asked to identify their most critical support industries andwhether those industries exist in Mississippi. For the polymer companies, key support industries includepetrochemical feedstock supplied by pipeline, fillers, pigments and scrap. For plastic companies, thecritical suppliers are resin makers, equipment repair, testing labs, and tool and die shops and moldmakers. Resin suppliers not located in Mississippi with the best potential for future development in thestate are discussed in the SWOT section. The other critical support industries required by plasticscompanies are located in Mississippi, with the exception of those discussed in the SWOT section.


Strengths Weaknesses Opportunities Threats(S.W.O.T.) AnalysisINTRODUCTION

Section

2E

Overall, as revealed by the survey respondents, the polymer companies are satisfied withMississippi. Although companies are experiencing operational and strategic challenges in this era ofindustry globalization, the majority has plans to expand in the next three years and about half are “likely”or “extremely likely” to expand in Mississippi. Mississippi’s polymer companies do not exhibit thestrong clustering of competitors or customers exhibited in clusters like the Italian silk industry or thesemiconductor industry in Silicon Valley. The majority of competitors for Mississippi polymercompanies, with a few exceptions noted in this review, are located throughout the U.S. Markets too areglobal or national, with just a few exceptions. While most Mississippi operations are manufacturing sites(95 percent), nearly 40 percent have R&D functions that support extension of current product lines. TheMississippi industry is as sophisticated as found elsewhere, and several of the executives mentioned thattheir in-state customers have become much more professional and sophisticated over the last decade,partly because Mississippi companies now find themselves part of global production networksheadquartered in the Midwest or in Europe. Past growth of polymer companies has raised the standard ofliving in Mississippi. Plantwide average wages for the cluster are nearly $12.00 per hour with benefitpackages that increase the average compensation to $15.00 per hour.

This analysis of the polymer cluster’s strengths, weaknesses, opportunities, and threats in thestate of Mississippi is based on several sources. Executives of cluster companies, both in-state and out-of-state, were surveyed by mail. In addition, interviews were conducted with selected cluster executivesand researchers at universities that conduct relevant research in the state of Mississippi. The survey wascompleted by 76 companies (22.35% of those mailed) employing at least 4300 of the cluster’s 18,694workforce.

Interviews supplemented the survey data with opinions and experience from 28 of the largestpolymer related companies in the state, including 15 that didn’t complete the survey. Combined, thesurvey and interviews encompass the experiences of 29 percent of the companies and more than 40percent of the employees in the cluster. Survey results include a large response from companies that havestarted operations in Mississippi over the last 6 years (17 companies, or 25% of the sample). The factualdatabase for this project is, therefore, representative of all companies operating in the state. Whencombined with the opinions and experience of senior executives at eight of the largest polymercompanies in the USA, located outside of Mississippi, the database is a reliable tool for assessingMississippi’s strengths and weaknesses for polymer development in this age of globalization.


Science, Engineering, and Outreach at USM

STRENGTHS

Real Estate Costs

Entrepreneurship

Community College System

The following factors were consistently rated as strengths by Mississippi companies.

Electric Power RatesRate comparisons with surrounding states and interviews (written and verbal) suggest that power

costs in Mississippi are competitive with those in other locations where plastics and polymer companieslocate. Companies that require both natural gas and electric power find Mississippi an extremelycompetitive location for production facilities. Power costs were rated as “extremely important” or “veryimportant” by 75 percent of the survey respondents (versus 25 percent that rated this factor as“important” or “not important.” Respondents also rated electricity costs as among the primary reasonsthat their companies had chosen Mississippi locations. This important production factor is an area whereMississippi continues to offer locational advantages.

Information provided by the Society of Industrial and Office Realtors shows that space costs inJackson are competitive to those in similar sized metro areas. Costs in rural Mississippi are lower andquite competitive to those in other locations.

Although half of the polymer companies operating in the state are owned by global organizationsheadquartered outside the state, these companies were started in Mississippi and many were acquired byoutside interests. Entrepreneurship is a critical element in the state’s success in polymers. PackardElectric and auto parts companies that relocated to Mississippi in the 1960s and 1970s were earlyadopters of plastics. The state had an early accumulation of production and engineering talent, marketopportunities and risk capital that allowed it to seize opportunities created by outsourcing strategiesadopted by the three major automakers in the 1980s. While programs that recruit investments by outsidecompanies are still important in the development of Mississippi’s polymer cluster, entrepreneurial toolslike lending and risk capital programs are critical to the full development of the cluster.

Fifty-five percent of the plastics companies and 30 percent of the polymer companies surveyedhad contracted with Mississippi community colleges for training. Two-thirds rated this training as“excellent,” “very good,” or “good.” Just a fifth of the companies rated the training as “poor” or “fair.”Several of the plant managers expressed concerns about budget cuts at community colleges limiting thestate’s attractiveness for industry expansion and development.

The Mississippi Polymer Institute (MPI) was created by the Mississippi Legislature and fundedto begin operation in 1993. The MPI provides technical and scientific support to the polymer relatedindustry members in Mississippi, utilizing the knowledge, skills, and state-of-the-art-equipment of theSchool of Polymers and High Performance Materials (SPHPM). The institute routinely supports thetechnical efforts of Mississippi’s coatings, inks, adhesives, plastics, and other polymer related industries.


Composites Research Program at Ole Miss

Academic Programs in Chemistry and Engineering

UM has focused its polymer resources into composite materials utilized in pultrusion technology.The university has contracts with the major companies in the field. The UM program includesmanufacturing (several pultrusion machines), plus a well equipped lab for testing and characterization ofmaterials, both of which are used heavily by industry. With a dropping cost for carbon fibers, pultrusionapplications are destined to replace steel in many structures (bridges, ships, and buildings). UM’sprogram in pultrusion has a worldwide reputation in the field.

R&D directors at the major companies emphasized their need for both engineers and chemists inpolymer R&D. Other skill sets include analytical chemistry and materials science. The state hasapproximately 500 students enrolled in fields associated with the cluster:

The University of MississippiMaterials Science - Graduate Emphasis Area 25 graduateChemical Engineering 70 undergraduates

Mississippi State UniversityChemical Engineering 150 undergraduates +70 graduate

The University of Southern MississippiPolymer Science and Engineering 100 undergraduates + 70 graduateChemistry 80 undergraduates + 22 graduate

13 postgraduates

Jackson State UniversityChemistry 20 undergraduates with zero graduate students

Mississippi’s academic programs are generating ample talent to support more advanced R&D inthe state. Employers within and outside Mississippi report a consistently high quality among graduates.About 80 percent of the 76 employers that completed the written survey reported that Mississippicolleges are producing “Excellent” or “Good” job candidates versus ten percent that rated the talent poolas “poor” or “fair.” Academic resources are a significant strength for the development of the Mississippipolymer cluster.

Level of UnionizationFewer than 10 percent of Mississippi companies in the polymer cluster are unionized. All

companies reported excellent labor-management cooperation.


Environmental Regulation & Permitting

Wood Products Research and Development

Vinyl Extruded Products

Furniture Products

Access to National and Regional MarketsTrucking is the dominant means of shipping product to market for polymer companies.

Approximately two-thirds of the companies in the polymer cluster serve national or global markets.Around a fifth of companies are strong in global markets, shipping more than ten percent of theirproducts to locations outside the U.S. Trucking cost models suggest that north Mississippi has anexcellent location for shipping to national and regional markets. The survey confirms this analysis.Trucking service is rated as “Excellent” or “Good” by 90+ percent of respondents. Companies in northMississippi, whether in Tupelo, suburban Memphis, or the northern delta, also have excellent airlineaccess to customers. The access advantage, both air and truck, diminishes as one moves to central andsouthern Mississippi. The range of polymer operations that communities in central or south Mississippican support is limited by market access.

Mississippi has a cluster of companies in the wood coating arena. Most of the major globalcompetitors in this industry have manufacturing capacity in Mississippi. The state has fostered thisindustry through developments at MSU’s Wood Products Lab and at USM’s SPHPM. The WoodProducts Lab has world class capabilities in wood coatings, adhesives, and composites. Companies inthe coating business reported in interviews that the Wood Products Lab at MSU and the Polymer ScienceProgram at USM are among the top coatings R&D centers worldwide. USM has the top coatingsprogram in the world, and works with industry through MPI. Mississippi clearly has a competitiveadvantage on which to build new applications that involve wood-polymer combinations, and othercommercialization opportunities abound. The best target wood-related opportunities are in woodflooring, wood composite decking, home office furniture, and polymer coated kitchen cabinets. Themajor research challenge is to find polymers with better temperature distortion characteristics.Environmentally friendly coatings and adhesives being developed in Mississippi offer great potentialrelated to wood products.

Vinyl products are an area where Mississippi furnishes the complete value chain from polymerproduction through finished products. The state has a concentration of companies that extrude vinyl intodecking, siding, and fencing. Most of the major world competitors have locations in north Mississippi.This is an area where the state has a competitive advantage upon which to build, but this industry sharesthe problem with polymer dimensional stability at high temperatures as does the wood compositesindustry.

Much of the polymer cluster around Tupelo revolves around support for the region’s upholsteredfurniture industry. This industry is a local success story where local entrepreneurship, civic interest, andingenuity, supported by research at MSU’s furniture institute, created a new industry in Mississippi. Thestate assisted the industry by pioneering new innovations such as wood composite furniture framing thatgive Mississippi companies a competitive edge in global markets. This is a niche where the state cancreate added value and growth. USM is also active in assisting this industry through the MPI and incoatings research.

Companies within both the plastic products and polymer industries rated the state’senvironmental regulation and permitting processes as competitive advantages. In the polymer area,where environmental permitting is an important site selection factor, permitting and regulation were ratedas competitive advantages by 42 percent of the respondents, the top choice among all of the factors listed.


NEUTRALS

Wage Rates for Entry Level Workers

Taxes

Supplier and Support Base

Telecommunications Infrastructure

While wage rates in Mississippi were a competitive advantage in past decades, the state has lostits competitive advantage in the labor arena. The U.S. labor market gained eight million entrants duringthe last decade through immigration from Latin America and Asia. Communities that attracted theseimmigrants, such as Chicago, Los Angeles, and Cleveland, now find that they are cost competitiveagainst rural Mississippi for manufacturing operations. Entry level wages in Mississippi are the same asin Chicago. One plant manager reported that his company’s operations in suburban Chicago had lowerwage rates and higher productivity than the company’s Mississippi plants because of its immigrantworkforce. The proliferation of casinos in Mississippi has created new job opportunities that residentsfind attractive. Initial turnover and work attitudes in manufacturing deteriorated when workers foundthese expanded choices in employment. Development strategies based on low wage rates will not yieldthe results in Mississippi that would have been expected a decade ago.

Analysis of tax rates and policies suggests that Mississippi has no specific tax advantages over itsneighbors, except in the case of specially crafted incentive packages for major projects like Wellman orNissan. Respondents to the survey rated tax policy as a neutral to a slight competitive advantage.Interestingly, incentive programs (local and state level) were rated as “important” in about 40 percent ofthe original site selections.

Clusters studied by Porter build competitive advantage through access to a network ofspecialized suppliers and support companies. While this is an elegant idea in theory, critical polymerinputs (resins, feedstock, fillers, pigments, molds) are sourced globally. Companies develop mastersupply contracts for facilities throughout the world to give suppliers the scale economies in productionneeded to reduce prices. Since raw materials normally are the largest component of manufacturing costs,these procurement strategies are critical to competitiveness of the polymer clusters. Perhaps a sourcingconsortium in Mississippi could be an effective tool for overcoming the purchasing inefficiencies broughton by low volumes.

States around the U.S. have invested significant dollars in building broadband access for theirrural communities because it is a critical component of Internet purchasing and supply networks.Purchasing and supplier networks common are already in the polymer area. About a fifth of purchasesare made via these networks while around an eighth of sales in the Mississippi polymer cluster emanatefrom the Internet. Broadband access in Mississippi is not an obstacle for companies, except in a fewinstances. Of the 76 companies that completed the survey, half reported that broadband access iscurrently available while just a third required broadband Internet access to participate in current or futurenetworks of vendors or customers. Just one of the 28 companies interviewed stated that Internet accesswas a concern. Telecommunication access in Mississippi is neither a strength nor weakness from alocation standpoint for current polymer companies. The survey cannot determine, however, if it is anobstacle for development of new industrial parks or manufacturing sites.


WEAKNESSES

Skilled and Technical Labor Supply

State’s Image in Midwest

Incumbent Worker Training

Educational Attainment of Workers

Although most of the workforce in Mississippi in the polymer cluster consists of productionworkers, technical and maintenance workers are a critical resource for maintaining productivity in plants.Chemical engineers, chemical plant operators, and maintenance mechanics are the life blood of polymercompanies. Respondents indicated that each of these skills, although critical, were in short supply.Eighty percent of respondents to the survey indicated that recruiting skilled workers was “ExtremelyDifficult” or “Difficult” in Mississippi. Unless Mississippi can increase the number of trained workerswith these skills, the polymer cluster will suffer.

Much of the trained workforce in polymers is located in the states of Illinois, Indiana, and Ohio.The majority of university graduates trained in these fields reside in the Midwest. Companies inMississippi report that it is nearly impossible to get workers with polymer training and experience torelocate to Mississippi. Many of the workers with cutting edge skills and experience reside in theMidwest. The state’s image and the perception of poor public education is an impediment tomaintaining Mississippi companies on the cutting edge of innovation.

While Mississippi has fine programs for plant expansions or relocations, it lacks formal programsfor upgrade training of existing workers. A frequent observation made by plant executives duringinterviews is that Mississippi works diligently to attract companies to the state then ignores themafterward. Several respondents stated that state economic developers are inattentive to the needs ofexisting industry, as well as local development groups in several locations (although other developmentgroups were rated as excellent resources by plant managers). Several companies reported that theirMississippi plants had lost expansions to states with formal programs for incumbent worker training(training not tied to an expansion of space or employment). This problem is related in part to inadequatefunding of multiple agencies involved in existing workforce training and in assisting Mississippi’sexisting industry.

Numerous executives reported that their workforces generally have a 6th - 8th grade reading andmath ability. This level is too low to allow managers to implement statistical process control andsophisticated manufacturing techniques. Most companies had invested in expensive remedial educationprograms just to get workers to a level where they could master the training needed to upgrade skills.Larger employers frequently have on-site facilities for GED programs. Mississippi needs a better systemto guide non-college bound students into job-oriented curricula and more accountability in lower gradesto ensure that all graduates can read, write, and perform math tasks at an acceptable level.


Unskilled Labor Supply (North Mississippi)

Power Reliability

Commercial Airline Service

Companies throughout north Mississippi report labor shortages of unskilled as well as skilledworkers. Entry-level workforces are tight for manufacturers because of the success of the casinos atTunica. One employer reported that he was forced to retain a worker who could not count because betterworkers were not available (this particular employee made tick marks of defective parts that the foremancounted at the end of the shift). Another reported that his company had hired 240 workers just to expandthe factory floor by 80 positions (turnover and absenteeism were the problems behind this employeechurn). Higher wages did not reduce the turnover problem at another factory. North Mississippi mustattract or develop a larger pool of high school graduates with good work habits if it wants to continue itshistoric expansion of polymer companies. Other U.S. communities that have faced this shortage havedeveloped programs to recruit and retain immigrant workers. South and central Mississippi companiesreport this problem to a lesser but still troubling, degree.

Power reliability is a critical requirement for polymer companies. Low rates do not matter whenplants can not operate 24 hours a day without interruptions. One interviewee reported that a 30 minuteoutage represents a $200,000 loss to his company. Another company reported as many as 30 powerinterruptions per year. Power reliability could be the Achilles’ heel of the Mississippi polymer cluster.Outages from ice storms and lighting are common in the region. Large loads in small communities are anengineering challenge for power companies. Mississippi must improve the reliability of its power grid ifit wants to expand the polymer cluster. This is, of course, difficult in a highly rural state where returnsoften do not justify new investment in infrastructure upgrades.

Sophisticated operations such as corporate headquarters, R&D, and marketing-sales requireairports with frequent nonstop service to national destinations. North Mississippi, near the Memphisairport, offers excellent nationwide and international service. Central and south Mississippi have lesssatisfactory airport service according to respondents. Companies interviewed and surveyed generallyreported commercial service as a weakness for their Mississippi operations.


OPPORTUNITIES

Thermoset Resin Production in Mississippi

Nissan Parts Development

New Resins with Dimensional Stability for Wood Composites andVinyl Decking

Wood-Polymer Laminates

Several companies mentioned that their suppliers of thermoset resins were considering newlocations for resin production since many customers were moving south to support new auto assemblyplants in the region. Thermoset resins are produced at smaller scales and many of the formulations areshort run for particular customers. In this type of production, scale economies and size are not criticalfactors in competitiveness so plants can be built at smaller production scales.

About a third of plastics companies in Mississippi sell to the automotive sector. Many of theinterviewed companies reported that they had adopted strategies of moving away from automotive toother niches because margins are lower and the industry is too cyclical. Nevertheless, Nissan productionin Mississippi opens the largest single market opportunity ever for Mississippi polymer companies.Many of the best opportunities will go to polymer companies who provide second tier services notcustomary among Mississippi molders.

Wood composites and vinyl products with dimensional stability are a growth opportunity forMississippi. Current materials do not work well in the southeast and southwest United States because ofdeformity during hot summers. Newly designed polymers that can fit market requirements in the Southare an opportunity for Mississippi to grow its existing industry clusters in vinyl products and woodcomposites.

Many opportunities exist for development of products that consist of wood or wood compositeswith polymer coatings. If Mississippi can harness its substantial expertise in these areas, it can createlocal opportunities for further industry growth akin to the growth in the furniture cluster around Tupelo.Some executives in the wood coatings business were puzzled at why Mississippi has not captured any ofthe new wood products companies located in neighboring states (R&D staffs at coatings companies needto frequently interact with technical staffs at customer sites, so nearness to customers is an importantconsideration in who gets the coatings business). Experts in the industry mentioned that other states haddeveloped programs aimed specifically at wood products. Arkansas, for instance, has a tradeorganization governed by a board of industry professional designed to attract wood products businesses.Alabama has a similar effort at Auburn University. These other states have a much better ability toanswer CEO level questions on a timely basis (many location questions in this particular businessrevolve around resources and specific supplier capabilities) according to respondents.


National Testing Lab with ISO Certification

Medical Polymers and Products

Testing is an important component of the R&D functions in Mississippi’s polymer cluster. Abouta third of survey respondents cited testing as a critical support industry. Two of every five polymercompanies in Mississippi have R&D functions in the state. These functions are not concerned with newproduct development but with customizing current products to the needs of new or current customers.Such R&D requires a significant amount of testing. Many of those interviewed mentioned that thetesting equipment and facilities at UM and the MPI were critical support services to their companies.Such companies mentioned that university labs could be improved by being ISO certified and offering anexpanded range of services. One specific suggestion was toxicology testing, required frequently in newcoatings. This is an area where Mississippi polymer companies feel that Mississippi universities couldbecome national leaders.

While medical device production might share materials with other forms of plastic molding, it isa different industry with much more sophisticated plant and manpower requirements. Since it is thefastest growing niche in polymers, it deserves special attention by the MDA.

Areas of innovation include infection resistant coatings, new polymers for drug delivery,microfabrication of parts (new polymers and processes are needed to support microfabrication) and newmolecules for drug deliveries, electronic microsensors, and polymer based biochips. New materials forinjection molding also are driving research agendas. Among the drivers are polymers that:

• can withstand the temperatures in autoclave sterilization (driven by new temperature resistantbacteria such as those that cause Mad Cow disease)

• that can withstand the aggressive chemicals used in chemotherapy• that can block radiation• that block contamination from the leaching of plasticizers and additives in PVC tubing

Medical device manufacturing is a different industry from other forms of molding and plasticsproduction, however. Plants must be FDA maintained to Good Manufacturing Practice (GMP).Manufacturing often is done in clean room environments with finer tolerances (such as 0.02 inchthickness in tubing). The need for microfabrication, precise dimensioning, and process repeatabilityrequires companies to have automated facilities with robots, pickers, Statistical Process Control (SPC)systems, and sophisticated process monitoring equipment.

Medical device companies are currently outsourcing production of older high volume appliances.This change in corporate strategy can become an opportunity for further production of medical devices inMississippi. Much of the research needed to support this niche involves collaboration between polymerfaculties, teaching hospitals, and medical schools.

Polymer Packaging R & DLarge polymer companies stressed a growing need for packaging professionals trained in

polymers. Many of today’s packaging graduates are trained at Michigan State, but Michigan’scurriculum is based on paper. With the advent of polymers based on metallocene catalysts, polymerpackaging is forecast to explode over the next decade.

Much of the packaging industry now revolves around thermoforming processes (not theextrusion and injection molding common in Mississippi) and around ABS and engineering resins, not thePVC, polypropylene and polyethylene that are the mainstays of Mississippi industry. Success atpackaging requires that Mississippi create new materials and a new manufacturing industry to supportpacakaging applications.


Academic Incentives for Company Consulting

Secondary Services

The majority of Mississippi companies report that research and development is critical to thefuture of their companies. Surveys by Plastics News report that the best performers among the injectionmolding community create their own parts designs and are manufacturing products they introducedthemselves in the last three years. Research and development is clearly important even in slow growthindustries like injection molding. The services cited most often as valuable to Mississippi companies aretechnical assistance to solve problems related to specific customers or materials. Ironically, appliedresearch is often not encouraged by academic institutions in Mississippi. Increased funding to the MPI,the UM Pultrusions Lab, the Mississippi Manufacturing Extension Partnership, the MississippiTechnology Alliance, and the manufacturing extension related activities at MSU could solve the technicalassistance needs of Mississippi’s polymer related industry.

The most advanced companies in the polymer industries provide a range of support servicesbeyond traditional manufacturing. Small independent companies have such low profit margins that theyrarely can invest in such activities unless they merge with major global companies or can collaborate withcommunity colleges or industry consortium to provide these services. Mississippi could provide suchservices on a consortium or contract basis, and this opportunity should be explored in more depth.

Coatings

The U.S. coatings industry primarily includes manufacturers of architectural coatings (i.e. housepaint), product coatings, (applied as part of the original manufacturing process), and other specialpurpose coatings. High performance maintenance coatings are formulated to meet performancerequirements in specific environments. These are used primarily to combat corrosion of exposed steel(National Paint Coatings Association).

The University of Southern Mississippi School of Polymers and High Performance Materials isalmost universally recognized as the top number one coatings program in the world. USM houses theInternational Coatings Institute, hosts the largest coatings symposium in the world, and has annualresearch contracts with dozens of the world's largest coatings related companies. USM is also the state'ssingle largest producer of polymer related patents, most of which involve coatings. Under theMississippi University Research Act (MURA), USM polymer engineers are also in the process ofcommercializing several new environmentally friendly products including paints adhesives and otherbinders. Approximately $10 million in external funding for research was generated by this program in2001. Additional funding to enhance research and commercialization efforts should bring dividends toMississippi's future economic development.


Electronic Market Outsourcing

THREATS

Mexican & Chinese Competition for Custom Molding

Portuguese, Czech & Chinese Mold-Making

Community College Domains

Major electronics companies like Hewlett Packard and Motorola are no longer performing theirown manufacturing and assembly. Companies like Flextronics and Celestica are now performingassembly services on a global basis for these companies. This allows electronics companies to focus onengineering, design, and product development while optimizing manufacturing costs. Contractmanufacturers have recently moved beyond assembly to the molding and production of plastic parts.Contract manufacturers maintain an inventory of global assembly sites for this purpose. Flextronicsreportedly has built a massive campus in Guadalajara, Mexico, for North American production. Thesame company has a staff of 800 moldmakers worldwide to support plastic parts production, probably thelargest talent pool of its kind. Mississippi companies must become part of these global sourcingnetworks in electronics or else they will lose this profitable market niche where they have historicallydone well.

Custom molders in Mississippi report they are losing business to Mexican and Chinesecompetitors because the hardware business has adopted global sourcing practices. Large nationalhardware chains like Lowe’s and Home Depot are redefining the competitive landscape for molders theway Wal-Mart, Sears, and K-Mart redefined the competitive landscape for apparel in the 1970s and1980s. National chains have such massive volume that they can allow remote manufacturing sites toovercome the additional costs from distance and increased inventory.

The mold-making professional is the highest paid worker in the polymer cluster. Salaries of$75,000 per year are common. Yet the U.S. tooling industry is losing market share to competitors inEastern Europe, China, and Portugal who can offer molds at cheaper prices. One company in Mississippireported that foreign made molds cost about a third of molds made in Mississippi.

Companies reported that community colleges are prevented from providing world class service toMississippi companies by their exclusive geographic territories. Companies mentioned, for instance, thatthey hired outside vendors to teach SPC classes because local community colleges did not have faculty toteach this subject (although adjacent community colleges could have provided this service). In an era ofglobal competition, governed by world class standards, community colleges rarely have enough localdemand to build world class faculty and facilities. Mississippi must evaluate its community collegedelivery system to build world class programs. The state can not afford to build world class facilities andstaffs in all needed technical areas at every community college. Priorities and more flexibility are neededfor providing services outside of small domains if Mississippi is to solve this problem.


SYNOPSIS OF RESEARCH INTERESTS AND CAPABILITIES

Jackson State University

Mississippi State University

The research team for the Mississippi Polymer Cluster interviewed each of the researchuniversities within the State of Mississippi. The Vice-President of research for each of the four institutionswas asked to identify department or institute chairs in the general area of polymer chemistry and chemicalengineering.

Jackson State University ChemistryMississippi State University Aerospace Engineering

Wood Products LabThe University of Mississippi Composite Research GroupThe University of Southern Mississippi School of Polymers and High PerformanceMississippi Materials

Interviews were conducted confidentially so that respondents could freely discuss problem issues.

In addition, the team interviewed the senior R&D person in a number of major polymer companies(Sherwin Williams, Dow, Albemarle, Exxon, and Schering Plough). These interviews were designed toidentify R&D trends that could provide opportunities for further R&D in Mississippi and to identifyobstacles to overcome.

The university’s graduate program is currently unfunded and without students. Theundergraduate program in chemistry generates about ten graduates per year but 70 percent move intomedical school or pharmacy graduate programs. Jackson State receives $3.6 million per year in researchfunding from National Science Foundation and National Institutes of Health. The strongest competencyis in computational chemistry. None of the contract research at the university is private sector funded norof immediate interest to polymer companies.

The aerospace engineering program at MSU has active interest in composites. The program’sinterest is in composite manufacturing techniques, not in materials science. The major challenges incomposite fabrication are the labor intensive layup process and the need to cure within an autoclave.Much of the research interest is in finding manufacturing techniques that allow cures outside ofautoclaves.

The university also has a research lab (Diagnostic Instruments & Analysis Lab) that does someresearch and testing in organic chemistry.

SUMMARY OF INTERVIEWS

Section

2F

Mississippi Research Universities and R&D Executives


University of Mississippi


The Wood Products lab at MSU has an active interest in wood adhesives and composites. Six ofthe 15 faculty at the center are chemists by training, many with industry experience at polymercompanies like Borden and Georgia Pacific. This unit holds the majority of patents granted to MSU.The center has a worldwide reputation in adhesives and composites and does market analyses for PriceWaterhouse and Standard & Poors. Annual budget is $4.5 million.

Much of the leading edge research in wood products revolves around wood-polymer composites.Examples are kitchen cabinets, home office furniture, and furniture laminates (wood surfaced withpolymer veneers) as well as new wood floorings.

Mississippi State has the largest engineering school in Mississippi. Enrollment in aerospaceengineering is cyclical and now is at about 100. Enrollment in mechanical and chemical engineering are360 and 220, respectively.

University of Mississippi has an active program in composite research within the materialscience and mechanical engineering departments (about six faculty). The group targeted pultrusion as anarea of active research because of the low initial capital requirement and the lack of academiccompetition in this area. UM’s program has a worldwide reputation, along with Delaware, MichiganState, Wyoming, and the University of California Santa Barbara. The program collaborates with themajor companies in the pultrusion area and the private sector supports the program financially. Abouthalf of the annual research budget ($500,000) comes from industry sources. The center has extensivetesting capabilities and also has two pultrusion machines (one donated by Shell Chemical) formanufacturing prototypes and test products. Pultrusion has great potential applications in civilengineering because of its lightness and strength but building codes and Department of Transportationrequirements are a major obstacle to opening up major markets.

The engineering programs at UM are much smaller than at MSU. Materials Science has 25graduate students (70 percent of graduate students are foreign born). Chemical engineering has between70-80 enrollment.

The School of Polymers and High Performance Materials (SPHPM), includes the Department ofPolymer Science (11 professors of polymer science), the Mississippi Polymer Institute (12 polymer scienceprofessionals dedicated to industry support), the International Coatings and Formulations Institute (ICFI),and the National Science Foundation University/Industry Coatings Institute. As an international center ofexcellence in polymer science and engineering, it is recognized as one of the top ten polymer scienceprograms in the United States (U.S. News and World Report). The SPHPM is staffed, structured, andequipped to provide leading edge technical and scientific competence in the training and education ofundergraduate and graduate students. The SPHPM is committed to provide novel and innovative ideas inadvanced polymer composition, and state-of-the-art engineered polymer products and processes. Externalresearch in 2001 exceeded $10 million, and faculty currently hold 51 patents.


Target Industries for MississippiCRITERIA FOR IDENTIFYING POTENTIAL TARGET INDUSTRIES

Section

2G

Table 13: Resin End Markets

Table 14: Synthetic Rubber use in USA1998

Targeting is the process of matching industry requirements with community strengths andweaknesses. Another element in targeting is industry market analysis, since companies do not expand orrelocate when markets are static or declining.

This target list builds upon the earlierStrengths and Weaknesses Analysis for theMississippi Polymer Cluster. The survey ofplastics and polymers companies identifiedthree critical factors, in addition to futuregrowth, that polymer industries require: 1)locations near customers, in communities with2) advantageous electric costs and 3) availableplant labor, particularly skilled workforces(maintenance mechanics, for instance).

Polymers consist of synthetic andnatural rubbers and plastic materials. Growthin the polymer cluster is driven by growth inend markets. The vast majority of capacity inmolding, thermoforming, and extruding isdedicated to producing component parts forcompanies in other industries. Resinmanufacturing, likewise, is driven by the needfor industrial materials in end markets (Table13).

Plastic materials consist of thermosets(fiberglass, for example), thermoplastics, andengineering resins. Thermoset resins can onlybe shaped once. They constitute about 10percent of the U.S. plastic market.Thermoplastics, about 80 percent of total byvolume, can be reshaped with heat.Engineering resins, the priciest end of themarket, are used where durability, strength,heat, or corrosion resistance is important.

Synthetic rubber production is about a twelfth, by volume, of resin production. Nearly 70percent of synthetic rubber is consumed in the automotive sector (Table 14). The balance consists ofnonautomotive seals and gaskets, building products like weather stripping and elastomers used in theproduction of flexible plastics.


CURRENT MISSISSIPPI END MARKETS

Packaging, the largest component of polymer use, is tied to beverage, food, health care, andbeauty products. Packaging companies locate near their customers to provide rapid turnaround.Schering Plough in Memphis, for example, buys plastic containers for packaging Ponds Cold Cream™and film to shrink wrap its Dr. Scholl’s™ products.

Survey respondents in Mississippi listed construction, automotive, packaging, electronics, andcoatings as their five largest end markets. The residential furniture market is another important marketsegment for Mississippi, especially for foam products companies. Mississippi has a growingconcentration of polymer companies producing:

• Tires (2.3 times the national concentration)

• Fabricated rubber products (2.9 times the national concentration)

• Compounding (1.8 times the national concentration)

• Plumbing fixtures (1.9 times the national concentration)

The following polymer industries are concentrated in Mississippi, but the state has a decliningshare of U.S. production:

• Foam products (3.8 times the national average in 1999, down from 4.5 times in 1989)

• Plastic pipe (1.3 times the national average in 1999, down from 1.8 times in 1989)

The current base of polymer companies is a good indicator of the strengths of Mississippi forfuture polymer growth (U.S. Industrial and Trade Outlook, 2000).

FORECASTS OF MARKET GROWTH

Growth in shipment and employees is the single most important factor in identifying targetindustries. Growth prospects are discussed in the following section.

Packaging

Construction

Packaging is forecast to grow by 5.0 percent in real terms over the next four years, much fasterthan Gross Domestic Product. Plastic packaging should grow from a $97 billion market in 1999 to$114.4 billion in 2004 (Freedonia Group as reported in Plastics News, 2001). Plastic containers areforecast to grow to 13 billion lbs in 2004, representing a compound annual growth rate of 4.2 percent peryear. The film and sheet used in packaging will grow at these same rates. The growth of beveragecontainers made from PET is forecast to level in the next two years.

Construction demand is forecast to remain stable for the next four years. Growth in plasticconstruction materials is still fueled by substitutions for metal and wood so construction markets forplastic will perform better than the general construction market. Vinyl siding, a major industry inMississippi, is forecast to capture 48 percent of the siding market nationally in 2005, up from 32 percentin 1995. This forecast translates into a near doubling of siding production (Freedonia Group forecast asreported in Plastic News, 2001).


Medical Devices and Disposables

Electronics

Reinforced Plastics

Plumbing fixtures and plastic pipe demand continues to grow through substitutions for metal andvitreous fixtures. These markets are forecast to grow during the next five years as plastics become morecommon in electrical conduit. Mississippi is home to plants owned by the two largest producers ofpolyethylene pipe and could benefit greatly if such pipe continues to replace concrete pipe in largecommercial applications.

Reinforced plastics, such as fiberglass and carbon composites, are forecast to grow from 3.6 to4.2 billion pounds in the next five years, a 17 percent rate of growth (Plastic News Market Data Book ,2000). Much of the growth is in automotive and construction applications. Construction applicationsinclude shower stalls and bathtubs.

Electronic applications of plastics are growing briskly worldwide. Many consumer electronicsproducts are forecast to grow by 15-20 percent per year over the next five years. (These forecasts, madein 2000, are probably optimistic given the industry’s performance in 2001). Much of the new growth,however, is global rather than domestic. The following forecasts (Plastics News, 2001) show the relativesize of the individual products:

• Cellular phones will grow to 526 million units by 2005 (compound growth of 15 percent); domestic share will drop to 19 percent.

• Desktop computers will grow to 127 million units in 2001, up 15 percent. Domestic demandwill drop to 37 percent.

• Portable computers will grow to 30 million units in 2001, up 19 percent from 2000. Thedomestic market will drop to 35 percent of the global market.

• Printer shipments will grow from 68 million in 1999 to 118 million in 2004. Forty percent ofshipments are to domestic customers, a significant drop over previous periods.

• Copier shipments of 2.1 million units will grow by three percent per year.

The global nature of the electronics market suggests that a shrinking share of plastic components inelectronics will occur domestically, although overall domestic demand will grow slightly.

Medical devices are a rapidly growing application of polymers. Sterile medical packaging grewfrom $720 million in 1990 to $1.32 billion in 2000. Plastic use in disposable medical devices is forecastto grow by 5.2 percent per year for the next 5 years (Freedonia Group forecast as reported in PlasticsNews, 2001). Four categories of disposable medical devices account for 75 percent of the market.Medical devices are a different industry from other polymer segments. The molding and extrusionprocesses are more sophisticated and automated than those for other industries. Facilities must meetFDA certifications. Molding and extrusion companies cannot shift from other segments withoutsignificant investment in facilities, equipment, and production techniques.


Furniture

Transportation

Compounding

Synthetic Rubber

Mechanical Rubber Products

Furniture consists of two distinct markets: office furniture and household furniture. Mississippihas significant production of upholstered household furniture but little office furniture production. Whilehousehold furniture is forecast to remain steady in sales, office furniture sales are growing. Sales ofoffice furniture grew nine percent in 2000 and were forecast to grow by five percent in 2001. TheBusiness and Institutional Furniture Manufacturers Association reports that manufacturers continue toconvert from wood and metal to plastics. Plastics are now the preferred look in office furniture (PlasticsNews, January 8, 2001).

A growing share of auto parts and body panels are polymer based. Forecasts suggest thatpolymers will continue to displace metal in these applications. Freedonia Group forecasts that plasticcontent in motor vehicles will grow by 33 percent over the next decade.

Compounding is a growth industry within the polymer cluster. As synthetic rubber and plasticresins become more sophisticated, niche companies have developed to mix fillers, pigments, andpolymers for custom applications. Compounding is forecast to grow to $7.6 billion by 2004 (FreedoniaGroup as reported in Plastics News Market Data Book 2000). The compounding industry has grownsignificantly in Mississippi over the past decade. Employment in compounding in Mississippi tripledbetween 1989 and 1999. The most rapid growth in compounding occurred in Michigan, Indiana, SouthCarolina, and Tennessee, states with new auto assembly plants (map in Appendix).

The majority of synthetic rubber production is controlled by tire companies. Twenty companiesproduce 93 percent of industry shipments. Industry shipments are strongly tied to growth in auto andtruck production in North America. Forecasts suggest that synthetic rubber production will growworldwide by three percent per year for the next five years. This growth rate can be accommodated byexpansions to current facilities in North America. Annual productivity increases above three percent forthe last decade have allowed the industry to meet growing market needs without building new greenfieldfacilities.

The demand for mechanical rubber goods is tied to shipment of industrial machinery andautomobiles. While overall rubber consumption in the U.S. has grown about one percent per year for thelast four years, employment and establishments in the areas of mechanical rubber goods continue togrow. Employment growth rates of four percent per year have been common in the period while thenumber of plants grew by 10 per year in the time frame. Employment and plant capacity in Mississippidoubled over between 1989 and 1999. Many of the new plants are located near new auto assemblyfacilities in South Carolina, Tennessee, and Alabama. Nissan will create such an opportunity forMississippi.


Rubber Hose and Belting

Tires

Plastic Materials and Resins

Adhesives and Coatings

Rubber hose and belting is strongly tied to growth in auto production in North America. Asglobal producers like Honda, Mercedes, Toyota, Nissan, and BMW increase their assembly capacity inthe U.S., the market for rubber hose and belting has grown strongly. Employment in this sector hasgrown about two percent per year since 1997 while the number of facilities has grown by 20 per yearduring the period.

Tire demand in North America is projected to remain flat over the next five years. Tireproduction at new locations is not a likely scenario. Mississippi should maintain some employmentgrowth through the expansion of the dozen plants now operating in the state (Mississippi tireemployment grew by 33 percent in the 1990s).

Resin production is a global business. Five companies have significant global positions in thefour largest resins (PVC, polyethylene, polypropylene, and polystyrene). A number of competitors inChina, South Korea, and Saudi Arabia changed the dynamics of the market in the 1990s by sellingcommodity resins at low prices. North American producers responded by focusing on specialty andhigher value products. Additional research in new technologies, such as metallocene catalysts andperformance enhancements of existing resins through alloying and blending have driven the growth ofdomestic production. (The growth in compounding is driven by these research trends). Significantincreases in plant productivity have allowed the resin industry to grow without building additionalgreenfield plants (an exception to this is the Wellman facility in Bay St. Louis).

Worldwide demands for commodity plastics are expected to grow by 3-4 percent over the nextfive years. The production increases can be met by expansion of existing sites, which is far cheaper thangreenfield construction (because of the additional environmental permitting costs and capital costs forutilities in greenfield development).

Growth in coatings and adhesives is tied to growth in end markets. Coatings and adhesives forconsumer packaging, the largest segment of the coatings market, are forecast to grow by six percent peryear over the next five years to $1.1 billion (Freedonia Group as reported in Plastics News, 2001). Theautomotive market, the second largest coatings market, is forecast to grow about 1.3 percent per yearthrough 2003(Freedonia Group as reported in Plastics News, 2001).

Mississippi has an average concentration of companies in adhesives and coatings. The coatingsindustry in Mississippi has consolidated and declined in employment over the last ten years, followingnational trends. Mississippi’s plants are tied to a niche market—finishes and coatings for wood products.This niche should grow as consumers use more hardwood flooring in residential construction.Mississippi growth in this sector greatly depends on the state’s success at attracting new wood flooringand office furniture companies, its ability to enhance coatings research and to develop and commercializeenvironmentally friendly coatings.


Forecast of Polymer Cluster Growth in Mississippi

The polymer industry has grown consistently in the U.S. since the 1970s. Forecasts suggest thatnational growth will continue in this industry, which is well positioned to seize emerging opportunities inglobal markets. Mississippi can anticipate sharing in national polymer growth, as it has consistently doneover the last 30 years. Knowing how much the industry will grow in Mississippi is essential toforecasting training requirements in the cluster. Since the growth of the Mississippi polymer clusterdeviated from the national growth pattern in the 1990s, a trend line forecast of growth is not appropriate.A modified shift-share method was applied which assumes that Mississippi growth will track nationalgrowth in each of the 31 industries in the cluster, but that Mississippi will continue to gain and losemarket share at the same rate as in the baseline period (1989-1999). In other words, Mississippi will seeits proportion of national employment increase and decrease in the following 4-digit SIC industries:

GROWING MARKET SHARE DECLINING MARKET SHAREPlastic Bags PigmentsIndustrial Inorganic Chemicals Synthetic RubberPlastic Materials & Resins Cyclic CrudesIndustrial Organic Chemicals Carbon BlackAdhesive and Sealants Rubber & Plastic HosePrinting Ink GasketsPetroleum Refining Plastic PipeTires and Inner Tubes Plastic BottlesMechanical Rubber Goods Plastic Foam ProductsFabricated Rubber Goods Valves & Pipe FittingsUnsupported Plastic Film and SheetCompounding of ResinsPlastic Plumbing Fixtures

One industry, organic fibers, grew rapidly in Mississippi during the 1990s because of Wellman’sinvestment in a polyester fiber line, which has since closed because of an extinction of domestic demandfor spinning fibers. The forecast deviates from the shift-share method in assuming that fiber employmentwill return to 1989 levels because the domestic market for spinning fibers will not grow in the future.

For the baseline forecast of national growth, a series developed by the Bureau of Labor Statisticsfor occupational employment forecasts to 2010 was used. The national forecast suggests that, althougheach of the polymer industries will grow in production during the decade, rising productivity levels willshrink the labor requirement in resins, feedstocks, and rubber products but will continue to generate newjobs in plastic products and coatings.

The Mississippi cluster is forecast to grow at the national average over the decade (Table 15).Mississippi is forecast to better national employment growth in the resins, rubber products, plasticproducts and coatings subclusters while performing below national levels in materials, synthetic rubber,and organic fibers. The forecasts for each of the seven subclusters are aggregations of the forecasts forthe 4-digit industries in the cluster (Table 16).

FORECAST OF POLYMER CLUSTER GROWTH IN MISSISSIPPI


Table 15: Forecast of Employment Growth in MS Polymer Cluster

Table 16: Forecast Employment by Subcluster


The occupational forecast was developed by Taimerica from Occupational Employment Statisticsfor 3-digit SIC Industries produced by the Bureau of Labor Statistics. Occupational employment wasaggregated for each of the fourteen 3-digit industry groups in the polymer cluster (this BLS data isforecast from the Detailed Input-Output Table of the U.S., and therefore doesn’t provide forecasts at the4-digit SIC level). The aggregations produced a profile of the cluster with 295 occupations, but 213 ofthe cluster occupations have fewer than 50 workers statewide and in the aggregate represent less than onepercent of cluster jobs.

The forecast for 2010 is a trendline projection of the occupational distribution in 2000 (Table 17).The trend line forecast suggests that the polymer cluster will generate 1,572 jobs between 1989 and 2010,or about 150 new jobs each year. Of these new jobs, about 40 percent require post-secondary training,either at a university or community college. Growth, however, is now the minor driver in trainingrequirements nationally and within Mississippi. Because of a graying workforce, the Mississippieconomy will see a record number of retirements in the next decade. The skilled blue-collar workerswith community college training in Mississippi will retire at rapid rates between now and 2010. Thisunprecedented aging creates a scenario where retirements create two job openings for every job in thecluster from industrial growth. The last column in Table 17 (marked Openings) represents total jobs inMississippi for each occupation from both growth and attrition. The attrition factors used to estimatefuture training requirements in Mississippi are national estimates for each occupation developed by theBureau of Labor Statistics. (The Mississippi situation is assumed to parallel national trends in attrition).The combination of attrition and growth should generate job openings for roughly 5000 Mississippians.Because of the demographic profile of skilled blue-collar workers, like Tool & Die Makers andMaintenance Mechanics, the attrition ratio for these occupations is far higher. This forecast, for example,assumes that growth will produce new jobs for 17 maintenance mechanics, but the total requirement withattrition is for 145 workers, an attrition to growth ratio of 7.5 to 1.0. With recent events in Mississippi,such as the Nissan announcement, this forecast is conservative (Nissan alone will create openings for 150maintenance workers).

Because of the graying workforce, Mississippi must devote new training resources to sustaingrowth in the polymer cluster. The statewide requirement for trained blue collar workers will growrapidly over the next decade and the community college and university systems require unprecedentedresources to meet these needs, especially because of the current shortage of such workers in Mississippi.Although the forecast of employment growth in the polymer industry is at the national average; ifMississippi devotes more resources to reduce a shortage of skilled labor, growth of the cluster should besignificantly higher.

Occupational and Training Forecasts


Table 17: Forecast Occupational Growthand Training Needs


POTENTIAL POLYMER SRATEGIES FOR MISSISSIPPI

Value Chain Development

Expansion of Current Polymer Companies

Attraction of New Companies

To further develop the Mississippi polymer cluster, increased international sales will be integral.This requires more sophisticated manufacturing and R&D. The following are some of the strategicmeasures that other regions have employed to develop their industry clusters.

Many of the world’s prominent clusters build their competitive strength through the vertical andhorizontal integration of suppliers and customers along the entire value chain--from materials throughconsumer markets. Such clusters tend to sustain their competitive advantage for decades or even forcenturies (such as the Italian silk industry). The value chains in Mississippi primarily revolve aroundPET, PVC resins, ABS, SAN, and titanium dioxide. These are commodity resins produced in large plantsfor global markets (to realize economies of scale in production). The primary way to utilize a value chainstrategy is to discover new formulations and applications of these polymers that can support new nicheindustries. Even then the competitive advantage accrues through new intellectual property, not throughsupplier-customer relationships. (Value chain strategies are not effective development tools in industrieswhere economies of scale are critical.)

An alternate strategy is to develop niche polymer companies (in either thermoset, engineeringplastics or upscale rubbers) that can develop proprietary products for emerging markets. The polymerengineering capabilities at USM are a plus for this strategy.

The most cost effective economic development strategies invariably involve expansion ofexisting companies. Since the coatings and molding businesses in Mississippi support othermanufacturers, the most effective means of doing this is to attract new companies in consumer industriesthat require moldings or coatings (wood flooring or auto parts, for instance). The Nissan project offerssuch a potential for Mississippi companies, but most of the companies in the state are not ISO 9000 orQS 9000 certified or large enough to become Tier 1 suppliers to Nissan.

Another method of working with existing companies is to help them develop proprietaryproducts for global or national markets. Much of this method involves extending the applications ofcurrent products into new niches through alloying, blending, or development of new polymers.

The competitive position of companies consists of more than just their equipment, location, andcapital base. Polymer companies develop expertise in particular resins or rubbers and in particularmanufacturing processes. An understanding of the markets and production techniques within particularmarket segments are critical assets that allow companies to remain competitive. Some of the growingmarket niches, such as medical devices, might not be growth targets for existing companies since themarkets and production technologies are vastly different from their base of existing customers. In suchcases, Mississippi must look at attracting companies within these niches.


Development of Corporate R&D and Technical Centers

New Companies Based onEntrepreneurial Opportunities in Mississippi

Seventy-five percent of patents in the U.S. are produced in large corporate R&D centers.Developing or attracting these R&D centers to Mississippi is a means of raising the state’s technicalsophistication in polymers. The process is not that easy in practice, however. Corporate R&D centersare often part of corporate headquarters. Our interviews reveal that both CEO’s and corporate researchstaffs often favor the co-location of R&D at corporate headquarters since R&D requires frequentinteraction with marketing and sales teams. Corporate R&D staffs also fear shrinking budgets andcorporate attention if CEO’s and senior executives are unable to conveniently review work done at thecenters. Strategies to attract corporate R&D must instead target corporate headquarters. Since fewcorporations relocate their headquarters, this strategy is not likely to yield results. A better approachmight be for MDA and MTA to collaborate with the state’s existing research universities in gainingaccess to corporate officials to create new research partnerships.

Many of the existing polymer companies in Mississippi were started by local entrepreneurs whosensed opportunities for new ventures. Others opportunities in Mississippi stemmed from policyinnovations such as the Furniture Institute at MSU and MPI at USM. The formation of polymercompanies based on local technology and science is an approach that has yielded success for Mississippiin the past and is likely to be just as effective in the future. Incentives for developing andcommercializing new products in Mississippi at Mississippi’s research universities could create newhigh-paying jobs for the state. MDA and MTA could play a major role in this process if bothorganizations are properly funded.


SIC 3088 & NAICS 326122Plastics Plumbing Fixtures

RECOMMENDED TARGETS FOR MISSISSIPPI

Regardless of which combination of development strategies that Mississippi crafts for itspolymer cluster, focus is critical to success. State governments lack the resources to effectively promotedevelopment among dozens of industries.

Industries must meet three criteria in our targeting process:

1. They must be growing nationally and regionally and therefore be candidates for expansions andnew locations in Mississippi.

2. Their locational requirements must match the assets offered by Mississippi communities.3. They must offer Mississippi opportunities to increase per capita incomes and salaries in

manufacturing.

The following list of eight industries are the recommended targets for Mississippi. Some of theopportunities stem from the construction of the Nissan project in Canton. Some stem from the growth ofmarket niches in Mississippi. Finally, some stem from growing national demand and Mississippilocations that are advantageous for companies in these industries. (National growth trends and industrycharacteristics are listed in the two appendix tables for the reader’s reference)

Success at any polymer development will depend on Mississippi eliminating the shortage ofmaintenance mechanics that are critical occupations in each of these target industries. Maintenancemechanics, tool and die repair, and machinists are critical support occupations in all of these targetindustries, as well as in auto assembly and current polymer companies.

The plastics plumbing fixtures business continues to grow rapidly in employment due toincreased use of plastics in residential and commercial construction. The sector is forecast to grow 20percent in employment over the next ten years (BLS projection). A significant share of the growth in thelast five years has been in SunBelt states of Tennessee, Georgia, Kentucky, Florida, Mississippi, Texas,and Oklahoma where the majority of new housing starts are occurring (See map in Appendix). Sincemost fixtures are injection molded, the requirement for experienced, high-skilled workers is limited. Theindustry added about 15 plants nationally each year between 1997-2000. The average plant employsbetween 40-50 workers. Production labor content is higher than in other polymer segments. Energyusage is average for polymers, however. With plantwide average wages of $28,000 per year, theplumbing fixtures industry pays lower wages than other polymer industries. Factory sites in the smallercommunities of Mississippi are the preferred locations for companies in this industry.


SIC 3087 & NAICS 325991Custom Compounding of Plastic Resins

Figure 12: Target Industry:Custom Compounding of Resins

Figure 13:U.S. Industry Characteristics

Figure 14: Industry Suppliers, Customers and Reasons to Target

The custom resin business is already a fixture in Mississippi (Figures12, 13, and 14). Withnational growth in custom compounding, the sector has opportunities to grow statewide (map inAppendix). The sector added 2100 jobs nationally over the last four years and built about ten new plantsannually. Compounding plants locate either near resin plants or near clusters of customers. The patternfits Mississippi well as illustrated by the recent growth of the industry in the state.

The compounding industry has no critical skill requirements that would limit its growth inMississippi. It also has little sensitivity to electric rates.

Source: Taimerica, 2001


SIC 3084 & NAICS 326122Plastic Pipe

Figure 15:Target Industry: Plastic Pipe

Figure 16: Industry Characteristics

Figure 17:Industry Suppliers, Customers and Reasons to Target

Northern and central Mississippi have an existing base of pipe extruders. The pipe industry ismore concentrated in Mississippi than in other U.S. states. The industry, as illustrated in Figures 15,16,and 17, has seen brisk growth nationally, growing by 18 percent in employment since 1997. The industryhas added approximately ten new plants per year since 1997 (map in Appendix). The pipe industry ismuch less sensitive to production labor costs than other segments of the polymer cluster but has a muchhigher requirement for technical and office workers. This segment also is less sensitive to material costs.With plantwide wages averaging $33,000, pipe plants increase average earnings in manufacturing inMississippi.

Source: Taimerica, 2001


SIC 3083 & NAICS 326130Laminated Plastic Plate, Sheet, and Profile Shapes

Figure 18:Target Industry: Laminated PlasticPlate, Sheet & Profile Shapes

Figure 19: Industry Characteristics

Figure 20:Industry Suppliers, Customers and Reasons to Target

The vinyl siding business in northern Mississippi is an example of a laminated shape. Thelaminate industry has grown rapidly since 1997 (Figures 18,19, and 20). Employment has grown by 20percent while the industry has added about 17 new plants each year. Laminates have less sensitivity tomaterial costs and an average sensitivity to power costs. Most of the growth in this segment has occurredin northern tier states (New York, Ohio, and Missouri) since much of the market is limited to northernclimates by material characteristics (map in Appendix). Average plantwide wages of $37,800 per yearare considerably higher than average in Mississippi manufacturing.


SIC 3052 & NAICS 326220Rubber and Plastic Hose and Belting

SIC 3053 & NAICS 326291Gaskets, Packaging, and Sealing Devices

SIC 3061Mechanical Rubber Goods

Nissan creates an opportunity for the birth of the rubber hose and belting industry in Mississippi.Although employment growth in the industry has been a modest (two percent per year) since 1997, thenumber of facilities has mushroomed by 24 per year during that time frame. Much of the new capacity isoccurring in states with new auto assembly plants. The industry segment has an average sensitivity tomaterial, labor, and power costs. Plantwide average wages of $34,000 per year offer Mississippi anopportunity to increase per capita income statewide.

This industry is another opportunity for Mississippi that derives from the Nissan location. Theindustry has added about 15 new plants per year since 1997, largely near auto assembly sites. Gasketcompanies are sensitive to costs for production labor since they have such a high content in theirproducts. Wages average $37,000 per year in this industry.

This industry is another opportunity deriving from Nissan. This industry is nearly equal in sizeto SIC 3052 and 3053 combined. Plants are larger in size, averaging about 90 employees. Wages at$34,000 per year are above the Mississippi average. Location activity has been approximately ten plantsper year since 1997. A map shows the distribution of new plants in states with new auto assembly plants(See map in Appendix). Rubber goods require lots of production and office-technical labor so theirgreatest sensitivity is to labor costs. The industry has an average sensitivity to power costs and a lowsensitivity to material costs.

SIC 2851 and SIC 2891Coatings and Adhesives

This target is related almost entirely to research capabilities and ongoing research at USM and, toa lesser extent, MSU. With world-class expertise and capacity in coatings, adhesives, and plastics andwood composites, companies should be targeted that can take advantage of this research. In addition, thestate should implement policy, which will foster the expansion of existing industry and promoteentrepreneurship.


Cluster Development Associations

ORGANIZING CLUSTER INTERESTS

Section

2H

Arkansas Wood Manufacturer’s Association

Several ideas for organizing cluster interests were uncovered during the interviews. Some ideasfor organizing cluster interests include:

This association was mentioned by the Forest Products Lab at MSU as a good model for a clusterorganization. The group has 100 voting members who are Arkansas manufacturers of wood products and40 associate members. The Arkansas Wood Manufacturers Association (AWMA) was established in1993 for the purposes of:

• providing the latest information, technology, training, and market data

• strengthening and expanding the wood products industry by promoting the quality, quantity, andversatility of Arkansas wood products for the benefit of Arkansas wood manufacturers,employees, customers, investors, and the general public

• providing information and services to members that will reduce costs, expand markets, andimprove the industry's competitiveness in global markets

• encouraging sustainable utilization of lumber and other wood products

• solving problems of mutual concern to the association's members

There are approximately 750 Arkansas wood product manufacturers producing products fromveneer to furniture, pallets to giftware, and trusses to cabinets. Together the industry employs some17,000 workers, providing 15 percent of Arkansas' durable goods manufacturing jobs.

The association works with the forestry department and the state department of economicdevelopment on trade and marketing activities. The Department of Economic Development sponsors areception at a national industry trade show in Atlanta, for instance. The organization has been assisted byWin Rockefeller, whose foundation Winrock International, provides staffing.


Mid America Plastics Partners, Inc. (MAPP)

Thomas Edison Initiatives

Ohio Polymer Enterprise Corporation

This is an industry trade group for plastic companies based in Indianapolis. They have 140members from coast to coast. The group has no government support. Recently they were approached bythe economic development department in Arkansas to assist the state in developing a program focused onplastics. The board of MAPP agreed and discussions are ongoing. The group has focused its efforts onraising awareness of the plastics industry among government leaders. Other efforts revolve aroundtraining, and the group is exploring a resin purchasing consortium. Plastic News also mentioned that thegroup has a series of education seminars around the country where they invite members of the IndustrialDesigners Society of America (www.ida.org) to learn about new uses for plastics. Designers still haveample room to substitute plastics for metal in many applications, and forecasts suggest that these usescould accelerate with the new generation of metallocene catalysts polymers.

In the late 1980’s the state of Ohio launched its Edison Initiatives. The legislature had a SelectCommittee on Science and Technology, yet not a single scientist or engineer sat on the committee (fewlegislators come from these fields).

When Ohio created the Edison Partnerships, the Edison Polymer Investment Corporation (EPIC)was one of the first initiatives they funded. Case Western and Akron University joined together in thiseffort (state money seeded the collaboration). The purpose of the corporation was to fostercommercialization of polymer research by small and medium sized Ohio companies. The program wasladen with an enormous amount of meetings and reporting requirements. The university funded its shareof the budget by recruiting large donors. Members selling more than $1 billion per year had annual duesof $56,000 with a minimum three year guarantee. The consortium players were large corporations andthey originally contributed out of a sense of citizenship. Ohio’s concept was to make each of the EdisonInstitutes self-funding initiatives (which didn’t work in practice). The large donors wanted first crack atthe research, but the rules favored small and medium companies. Ohio eventually withdrew funding lastyear because they did not feel that it was performing its mission which was to stimulate growth of smalland medium sized polymer companies in Ohio. Mississippi can learn a great deal from the failure of theEdison Initiatives.

Ohio recently instituted a new program to succeed the Edison Initiative. The Ohio PolymerEnterprise Corporation is budgeted at $2.2 million. The corporation has a board that has more industrymembers than academic ones by design. The mission is to commercialize polymer research in Ohio. Themetric that the state will use to measure success is the number of companies started in Ohio. The initialproject of the institute has been to build a pilot plant that allows them to create evaluation quantities ofnew polymers.

Polymer Research ConsortiumsAkron launched an industry consortium that is having a major impact on its polymer program.

The consortium consists of 22 PVC international companies worldwide. The industry has low marginsand therefore little internal resources for its own R&D. Akron convinced the industry that they couldhave an effective research program if it pooled its resources. The mission of the consortium is to movePVC up the value chain to where it can break into the engineering plastics price range. Akron hasenlisted world class experts from a number of institutions worldwide. Annual funding is now $6 million.


Ohio Polymer Summit

Ohio Polymer Strategic Council

Ohio has a Polymer Summit each year. This started slowly but now is a major event with thegovernor and a cadre of major speakers with attendance around 500. The Summit is built on theeconomic impact of the polymer industry. Polymers are the largest industry in the state, yet the state onlyspends $2 million a year on the industry versus $60 million per year on agriculture and $100 million peryear on coal. Although the Summit is a big event, it does not have the buzz and excitement of an MITTech Forum where attendees anticipate hearing exciting commercial ideas.

Another innovation in Ohio is the Ohio Polymer Strategic Council. This is a group of 12university presidents and company CEOs. The budget for the group has been furnished by the OhioDepartment of Development. The mission of the group is to set a strategic direction for the developmentof the polymer business in Ohio. The group has an executive director and small staff.

Best Practices Issues

1. Policy must be driven by industry interests, not by political aims such as economic developmentand job creation ( example: Ohio Polymer Strategic Council).

2. Membership based groups are a better vehicle for industry involvement than governmentsponsored groups (Wood Manufacturer’s Association and MAPP).

3. The plastics and polymer industries have a need to make political leaders aware of theirsignificance, even in Ohio. The industry is invisible from a policy standpoint (Ohio PolymerSummit).

4. Theoretical constructs like the Edison Initiative are difficult in practice because large and smallcompanies participate for different reasons. (Even joint ventures between two private companiesare difficult in practice). Involving a large set of players increases the complexity of the groups,creates management conflicts, and diminishes the value to each member. The political necessityof creating a statewide association should be weighed against the management challenges of thisbusiness model.

Several of these organization’s were contacted to determine best practices within their cluster.These best practices include:


Cyndi GaudetJon Carr

Jane Griffin

TASK 2Workforce Development Models


Task 2: Workforce Development Modelsfor the Mississippi Polymer ClusterINTRODUCTION

Section

3A

The worldwide market for polymer technologies has significant market potential for Mississippi.As an emerging growth industry, there is a workforce shortage of professionals and trained specialists tosupport the growing polymer industry. The growth of this market demands support of the education,training and development of technicians and technologists for the polymer industry. A strategy isrequired to meet the challenge of providing a well-trained workforce while at the same time perpetuatingan expanding market of persons who are trained, familiar and ready to apply polymer technologies whensolving workplace and societal challenges.

With an increasing number of new polymer technology companies and the expansion of existingcompanies, there is an increased need for a systematic approach for workforce development inMississippi to support this industry growth. Workforce development, for the scope of this project, isdefined as the training and retraining of the incumbent and future workforce. The workforce planningprocess must be a customer-driven process that determines workforce needs and provides the foundationfor appropriate training and education opportunities. This report presents a competency model thatintegrates the technical, business, analytical, and interpersonal skills required to develop a technicalworkforce for the Mississippi polymer industry.

Successful workforce planning requires (Figure 1):

• Supply Analysis that includes an analysis of the trends in the plastics/polymer industry, theexpertise of the existing workforce, and current educational programs designed to academicallyprepare the Mississippi plastics/polymer workforce;

• Demand Analysis to determine the workforce knowledge, skills and abilities required to meetprojected industry requirements, career paths, and academic preparation requirements for theworkforce;

• Gap Analysis that compares current workforce skills with future needs, analysis of how workforcedemographics will change, and identifies opportunities for new or improved academic programs;and

• Solution Analysis that provides tools for workforce recruitment and selection, employee trainingand development, and curriculum development.

Creating a workforce development plan for the polymer industry cluster begins with an analysisof the work that is required in the industry. With the changing nature of jobs and work, the concept of a“job” is becoming obsolete. For instance, in many high-technology industries employees work in cross-


Figure 1: Workforce Planning Process

functional project teams and shift from project to project. When that project is finished those sameemployees will move to other projects, possibly with other employers. Such shifts may happen severaltimes per year. Therefore, the basis for recruiting, selecting, and compensating these individuals is theircompetence and skills. The best approach to develop a workforce is to focus less on performing specifictasks and duties and more on fulfilling responsibilities and attaining results by developing a competencymodel specific for the industry.

Competency modeling is an attempt to describe work and jobs in a broader, more comprehensiveway (Mathis and Jackson, 2000). Competency-based performance models yield a common languageacross positions within an industry. It is the best approach when creating a performance managementsystem, and it enables workforce development professionals to identify core capabilities required of anyemployee in any position across an entire organization or industry (Gilley and Maycunich, 2000).Robinson and Robinson (1996) encourage the use of a performance model when describing “should”performance for a specific position or job cluster. Groups of competencies typically include theknowledge, skills, and abilities required in accomplishing a task or job. Exemplary performers areinstrumental in identifying the knowledge, skills, and attitudes necessary to achieve desired results.

Competency-based performance models are the best approach when a job cluster is being assessedand the results can be easily translated into training curricula (Mathis, 2000). While training programsbased on work-oriented task analysis can become dated as work undergoes dynamic change, trainingprograms based on competency assessment are more flexible and perhaps have more durability(Bohlander, et al, 2001).

The Workforce Development portion of this project was designed to:

(1) Analyze labor needs and skills gaps;

(2) Identify and describe career paths specific to the industry cluster; and

(3) Recommend ways to improve linkages to educational institutions.

Supply Analysis•Employee knowledge, skills,

& abilities•Existing academic programs

Demand Analysis•Workforce knowledge, skills,& abilities to meet projectedneed

Gap Analysis•Comparison of current

workforce skills with futureneeds

•Identification of areas inwhich educational actionwill be needed to reachworkforce objectives.

Solution Analysis•Revised academic programs•Improved employee recruitment & selection

•Improved employee development & re-training

•Performance management


PROJECT METHODOLOGY

Section

3B

PHASE 1 - Analyze Labor Needs and Skill Gaps To accomplish the objectives of this study, project activities were organized as follows:

Step 1 Supply Analysis

Describe the Expertise of Existing Workforce

This step in Task Two involved an analysis of the trends in the plastics and polymersindustry identified in task one. A survey of polymer and polymer-related industries was con-ducted to elicit information regarding the kinds of workers employed in the industry, the kinds ofworkers most critical to the success of the organization, and the workforce shortages. Respon-dents were also asked to assess their ability to recruit and train workers for their facilities.

Describe the Availability of the Current Workforce and Educational Programs

Through a survey of polymer and polymer-related industries, state organizations wereasked to provide information about the kinds and quality of training programs they use forworkforce development.

Academic programs designed specifically for the polymer industry were identifiedthrough face-to-face meetings and phone interviews with secondary and post-secondary institu-tions that have offered polymer related curricula in the state. Information also was obtained fromNancy Alley, State Workforce Development Coordinator for the State Board for Community andJunior Colleges, to determine workforce development activities provided by Mississippi two-yearinstitutions during the past three years. The State Board for community and Junior Colleges, theVocational Instructional Development Bureau, and the Office of Vocational and Technical Educa-tion were other resources used to gather information regarding secondary and post-secondary vo-tech programs that support the polymer industry.

Non-degree programs also were identified that provide polymer industry workforcedevelopment programs in Mississippi.

Step 2 Demand Analysis

Determine the Knowledge/Skill Requirements, Required Academic Preparation, and Career Oppor-tunities for the Polymer Cluster Workforce

This project began by conducting a survey of polymer and plastics companies in Missis-sippi. Included in the survey were questions to help identify training needs and informationrelative to existing workforce needs and characteristics.


The next component of the project was to help describe the workforce required by statepolymer industry organizations. A competency model approach was utilized to help achieve thesponsor’s goal of assisting in the development of a well-trained workforce for the polymer cluster.In order for a competency model to have meaning and relevance for those who will ultimately useit, polymer industry stakeholders were involved from the beginning to help guide competencymodel development. A preliminary list of polymer industry roles, competencies and outputs wasdeveloped using existing academic and professional association workforce development publica-tions, as well as industry contacts. National and international professional associations providedindustry information. A variety of industry publications and Internet resources were used toconstruct a preliminary list of roles, role definitions, competencies, and competency definitions.These lists were reviewed and revised by both focus group participants and role experts. For thelist of external resources used for data compilation, see the Workforce Development Role Pro-files Section in the Appendix.

The study was designed to collect input from a variety of sources, but relies primarilyon role experts in the workplace. Two distinct data collection activities were utilized to developthe competency model:

• A focus group session for industry stakeholders to identify:! role definitions;! work requirements for individuals in various technical roles;! standards or quality requirements for technical work; and! relevant ethical challenges likely to face polymer industry professionals in

their work.

A focus group session was designed to allow for polymer industry expertparticipation. The focus group was held in Jackson, Mississippi, to accommodate thegeographically diverse group. Representatives from polymer organizations from aroundthe state met in a two-day workshop to define the polymer industry present and futureworkforce needs. Participants identified polymer industry roles and definitions for eachrole, and determined key outputs (deliverables) and the standards for each output foreach of the technical roles.

The NASA Stennis Space Center e-SPACE (electronic-Strategic Planning andConsensus Engagement) Collaboratory was used to improve the effectiveness andefficiency of a two-day focus group session. The e-SPACE Collaboratory utilizesGroupSystems, a specialized computer software system designed for use by collaborativework groups that has produced measurable productivity gains for major corporations inrecent years. Software designed for electronic meetings, in particular, is documented toreduce by 90 percent the time required for managers to complete complex projects. Thestrength of using this format is that participants are given the ability to commentanonymously over networked computers, encouraging equal participation by allindividuals during the session. The format also provides instant access to informationand a structure for decision processes and alternatives evaluation.

This methodology has been used successfully to develop competency models forother industries, (i.e., the GeoSpatial Technology Competency Model© and the HRDProfession), and competency models have also been integrated in organizations likeRaytheon and Halliburton as a workforce development tool.


• Face-to-face interviews with role experts functioning in each of the identified technicalroles to validate focus group data and to gather additional information about thecompetencies needed to perform each role successfully.

PHASE 2 - Human Resource Development Strategies

PHASE 3 - Recommendations for Workforce DevelopmentInfrastructure

After working with industry stakeholders in focus group sessions and after focusgroup data analysis and interpretation, plans were made to give role experts theopportunity to validate the polymer industry roles, outputs, and quality requirementsidentified by focus group participants. In addition, role experts would identify the keycompetencies needed to perform their respective work roles successfully. This data wasgathered by conducting face-to-face interviews with role experts working in the state’spolymer industry.

Organizations from more than fifteen cities in Mississippi are represented in thestudy. Eighty employees from twenty-eight organizations participated in the competencymodel development by serving as role experts.

Step 3 Gap Analysis

For the gap analysis, information from focus group discussions and the MississippiPolymer Industry Competency Model were used to compare current workforce skills with futureneeds. The team’s research on trends in the polymer industry, together with target industriesidentified in Task One, were used to analyze projected changes in workforce demographicsrelative to the polymer industry. Profiles of statewide educational program offerings wereconstructed. Competency requirements identified in the Mississippi Polymer IndustryCompetency Model were mapped to relevant and existing education and training programs. Thisprovided the basis for a gap analysis to compare current workforce skills with future needs and toidentify areas in which educational action is needed to reach workforce development objectives.

The results of research in Task Two, Phase One, were integrated with the cluster analysisfindings in Task One. Information from role expert interviews was analyzed and yielded theMississippi Polymer Industry Competency Model. This model (1) explains the relationshipbetween the roles and competencies required in the polymer industry cluster; (2) provides a listof outputs and the quality requirements associated with each output by role; and (3) identifiesrelevant ethical challenges by role for polymer industry professionals.

The workforce supply, demand, gap and solution analyses in Task Two formed the basisfor recommendations for Mississippi’s workforce development infrastructure for the polymerindustry. The outcome of this phase was an outline of relevant industry education and trainingrequirements; existing education and training programs, along with opportunities for new orimproved programs; and the recommendation for the use of the competency model as aperformance management tool by the Mississippi polymer industry.


PROJECT RESULTS

Section

3C

PHASE 1 - Analyze Labor Needs and Skill GapsStep 1 Supply Analysis

Describe the Expertise of Existing Workforce

A statewide survey was developed to provide workforce information specific to polymer-related organizations. Respondents were asked to rate their ability to recruit workers for theirfacility. Eight out of ten employers reported it is “Not Difficult” or “Somewhat Difficult” torecruit unskilled workers, and five out of ten answered in the same two categories for semi-skilled workers. However, seven out of ten responded that it is “Very Difficult” or “ExtremelyDifficult” to recruit skilled workers. The top three reasons identified as the reasons for difficultyin recruiting workers for their operations in rank order were: (1) Lack of Quality Applicants, (2)Lack of Qualified Workers in the Area, and (3) Poor Work Ethic.

Respondents were asked to rate the quality of their workforce in terms of work attitudesand cooperation on a scale of one to five (1= excellent, 2=very good, 3=good, 4=fair, 5=poor). Amean rating of 2.45 was reported, indicating that state organizations rate the overall quality of theworkforce between good and very good. When asked to rate labor productivity using the samescale identified above, respondents ranked the productivity of their workforce between good andvery good with a mean rating of 2.37.

Finally, focus group participants were asked to identify their most critical workforceneeds. This group of polymer and polymer-related industry managers provided needs consistentwith the recruitment barriers listed above. The following skill and education deficiencies werenoted by focus group participants: literacy skills (basic reading, writing, and math), lack ofscience education (chemistry, polymer science), lack of general manufacturing and process-specific skills (extrusion, maintenance, electrical skills), lack of interpersonal and communicationskills, lack of deductive reasoning and comprehension skills, lack of basic computer skills. Inaddition, they indicated that poor work habits, resistance to shift work, and high turnover ratesare other prominent workforce problems.

Describe the Availability of the Current Workforce and Educational Programs

A statewide survey of 76 polymer companies indicated that 83.1 percent depend on in-house training for new worker training, but only 66.2 percent depend on in-house resources toupgrade their existing workforce (Survey Results in Appendix). Although the majority still usein-house training resources for workforce development of their existing workforce, respondentsindicated that they are twice as likely to use the community college system or outside vendors totrain the existing workforce. Respondents indicated they are overall satisfied with the quality ofeducation and training provided by the state education system with more than seventy percent ofrespondents rating good, very good, or excellent.


This study sought to identify training programs located in Mississippi that are designedspecifically to academically prepare individuals for jobs and careers in the polymer industry. Thesections below describe the secondary, two-year, apprenticeship, baccalaureate, and graduateacademic programs in polymer science. Non-degree, professional development programs also aredescribed.

Secondary Programs

Petal High School has the only secondary polymer program in the state, and only one of a handfulin the nation. The Polymer Science Program in Plastics Technology (Program CIP: 15.0607), atwo-year curriculum, is coordinated by Eddie Spaulding, and is classified as a vocational-technicalcourse. The curriculum was implemented in 1998, has an average enrollment of 45 students peryear, and has produced 29 program completers from its inception through 2001. Program completersare defined as those students completing both years of the program. There is currently only onefull-time faculty dedicated to the program. Students participate in a job shadowing program withlocal companies such as Sunbeam, Western Container, Dickten & Masch, and SuperiorManufacturing. In some instances, high school students have been offered jobs in polymer companieswhile they were still students. Some students wishing to pursue advanced training also have receivedscholarships at Jones County Junior College. The greatest need of this unique high-technologyprogram is the equipment and resources to make sure the classroom accurately reflects industrypractice.

The Curriculum Framework is currently being revised, but the 1999 document is availablethrough the Mississippi Department of Education and offers the following program description:

“Plastics and Polymer Science Applications I is an instructional program that introducesan individual to the field of plastics and polymer materials manufacturing. Plastics and PolymerScience Applications II is a continuation of Plastics and Polymer Science Applications I andallows an individual to prepare for employment or continued education in the occupations ofplastics and polymer materials manufacturing.”

Units of instruction for the first year of the program include:Unit 1 Introduction and OrientationUnit 2 Safety, Health, and Environmental (OSHA & EPA)Unit 3 Computer ApplicationsUnit 4 Business Principles and Employability SkillsUnit 5 Structure and Properties of PolymersUnit 6 Basic Design Principles for Manufacture of Plastic Products and ToolsUnit 7 Processing and ApplicationsUnit 8 Quality ControlUnit 9 Recycling

Units of instruction for the second year of the program include:Unit 1 Introduction and Orientation (Review)Unit 2 Safety, Health, and Environmental (OSHA & EPA)Unit 3 Polymer SynthesisUnit 4 Polymer CharacterizationUnit 5 Polymer ProcessingUnit 6 Polymer Engineering and DesignUnit 7 Schools to Careers


Tech Prep courses such as Technology Discovery also exist in secondary schools, butthese are not job preparation courses by nature. Courses such as Technology Discovery aredesigned to expose students to the types of technological opportunities that exist in industry,instead of teaching specific hands-on skills.

While Petal High School is the only secondary school within the state that offers apolymer-specific vocational course, other vocational offerings teach secondary students polymer-related material. For a listing of these approved vocational courses, see Table A-3 in the Appen-dix.

Community College Programs

Jones County Junior College is the only state community college currently offering atwo-year polymer related program. Pearl River Community College (PRCC) had an injectionmolding program at the Hattiesburg campus designed primarily to work with Sunbeam. According to the PRCC administration, as Sunbeam moved to a distribution center emphasisrather than that of a manufacturing center, Sunbeam’s needs moved away from requests for theinjection molding program at PRCC. The old equipment is currently being relocated to thePoplarville campus to start up a machine-shop program in Fall 2002.

Holmes Community College offered a Plastics Technology program from 1994-1996, butcampus administrators indicated that low enrollment, together with budget constraints forstudents contributed to the close of the program. At the present time, the Ridgeland campus ofHolmes Community College is preparing to reopen a vocational Industrial Maintenance program.The Industrial Maintenance program will essentially be a modified machine shop program andadjunct faculty will be serving as course instructors. Mr. Johnnie Mack Burrell, AssistantVocational Director for Holmes’ Ridgeland campus, believes that the materials covered withinthis course will complement the skill sets needed in the state’s polymer industry. Holmes hopesto offer vocational courses in Industrial Maintenance by the Fall of 2002.

Jones County Junior College (JCJC) first implemented its polymer program in 1995.Officially named Plastics Technology (Program CIP: 15.0607), the program reports an averageannual enrollment of 12 students. Approximately 65 students have completed the program,which has one full-time equivalent faculty member. However, the integration of machine shopand elective courses provides an additional eight faculty with whom students interact. A work-based learning partnership with seven local injection molding facilities is being developed toprovide internships for the program. Program completers typically enter the workforce asInjection Molding Technicians or Supervisors, mainly for the plastics industry. A few studentsalso are reported to enter other fields such as mold building.


The state post-secondary Curriculum Framework provides the following programdescription:

“The Plastics Technology program provides classroom and laboratory instruction inplastics materials and processes. Included are polymer properties, quality control procedures,and operation and troubleshooting of various types of plastics processing equipment.”

Students of the Plastics Technology Program completing the first year of the programmay receive a Certificate of Plastics Technology. Students who complete the two-year programare eligible to receive the Associate of Applied Science Degree in Plastics Technology.Employment opportunities for graduates of the certificate program may exist as skilled operators.The graduates of the technical program may qualify as technicians or supervisors of processes inthe plastics industry. Graduates may expect to enter the plastics manufacturing business inproduction, maintenance, and technical areas. Employment opportunities include setuptechnician, process engineer technician, lead person, supervisor, molding and quality controltechnician, plastics engineering technician, maintenance coordinator, and research anddevelopment technician. A 15-semester hour academic core is required for the Associate ofApplied Science in Plastics Technology. Plastics technology courses required in the two-yearcurriculum are:

Introduction to Plastics Materials and ProcessingPolymer Material PropertiesInjection Molding IProcess Control for Injection MoldingPlastics Tooling Construction PrinciplesInjection Molding IIPlastics ExtrusionTroubleshooting Plastics ProcessesPlastics Quality ControlBlow Molding/ThermoformingSpecial Problems in Plastics TechnologySupervised Work Experience in Plastics Technology

For information on the 16 categories of two-year vocational and technical programs thathelp support the state’s polymer industry, see the Educational Program Profiles section of theAppendix.

University Degree Programs

The University of Southern Mississippi is the only university within the state of Mississippithat offers degree programs in the area of polymer science. The School of Polymers and HighPerformance Materials in USM’s College of Science and Technology has multilevel polymer degreeofferings, including: a B.S. in Polymer Science, a M.S. in Polymer Science, a M.S. in PolymerScience and Engineering, and a Ph.D. in Polymer Science and Engineering.

There are other four-year educational institutions in Mississippi that offer degree pro-grams that correlate with the polymer industry. The Dave S. Swalm School of Chemical Engi-neering at Mississippi State University (MSU) offers both undergraduate (B.S.) and graduate(M.S., Ph.D.) degree programs in chemical engineering. Like MSU, the Department of ChemicalEngineering at The University of Mississippi (Ole Miss) also offers both undergraduate (B.S.)


and graduate degree programs (M.S., Ph.D.) in chemical engineering. Ole Miss also offers agraduate program emphasis in materials science and engineering. For further information onthese university degree programs, see the Educational Program Profiles in the Appendix.

Apprenticeship Training

In Mississippi, Puget Plastics offers the Plastic Process Technical Apprenticeship Program,a recognized U. S. Department of Labor apprenticeship. The Puget Plastics program began in 1999in conjunction with Oreck Manufacturing in Long Beach, MS. In July 2000, Puget Plastics acquiredthe plastic molding operations from Oreck and retained the Plastic Process Technical ApprenticeshipProgram. Puget Plastics has enrolled 15 employees in the Apprenticeship Program. Six of thoseworkers have reached the 8,000 hour requirement to attain “Journey Worker” status. The remainingnine employees are still working towards meeting that goal. Each employees’ progress is trackedweekly in the human resources department. Nancy Lewis, Human Resources Manager, and MikeRoss, Plant Manager, believe that the Plastic Process Apprenticeship Program has been a successfor Puget Plastics. Both feel that the Apprenticeship Program is an excellent way to train workers,and they hope to double the number of program enrollees in the near future.

The U. S. Bureau of Apprenticeship and Training (BAT) is the Federal agencyresponsible for directly registering apprenticeship programs and apprentices in 23 states, and forassisting and overseeing State Apprenticeship Councils (SACs) which perform these functions inthe other 27 states and the District of Columbia. Registration of an apprenticeship programmeans acceptance and recording of such program by the BAT, or registration and approval by aSAC.

The Plastic Process Technician Apprenticeship Program has been offered by the U. S.Department of Labor, Bureau of Apprenticeship Training since 1994. This apprenticeshipprogram was initially developed in response to a request from a Michigan plastics manufacturingcompany for an improved way for training technicians in the injection molding productionprocess.

The BAT’s Plastic Process Technician Apprenticeship Program is an 8,000 hour programthat involves both on-the-job training and related instruction in plastics production using theinjection molding method. This apprenticeship program may be sponsored by (1) employers; (2)employer associates; or (3) joint employer/union partnerships. The sponsor works with the BATor SAC to develop a Plastic Process Technician Apprenticeship program for their local area andits specific needs.

The Plastic Process Technician Apprenticeship Program has four essential requirementsfor an individual apprentice to complete the program. First, the program must be approved byeither the BAT or the appropriate SAC. Second, the apprentice must meet the minimumqualifications established by the local apprenticeship program in order to apply. Third, theapprentice must complete 8,000 hours of on-the-job training as registered and required under theapprenticeship’s work process schedule. Finally, the apprentice must satisfactorily complete theregistered, required minimum of 144 hours of technical instruction per year over the four yearcourse of this apprenticeship program.


In completing the 8,000 hours of on-the-job training under a particular Plastic ProcessTechnician Apprenticeship program, the apprentice must have training in the following workprocess schedule activities:

1. Oversight of plastics trial molds (500 hours);2. Sampling of materials used in plastics molding production (500 hours);3. Performance of minor tool repairs (500 hours);4. Troubleshooting the plastics molding job processes and equipment (1,000 hours);5. Setting production dies to specifications (500 hours);6. Production cycle record keeping (100 hours);7. Production development teamwork (200 hours);8. Production process scrap reduction and control (1,000 hours);9. Production control procedures administration (1,000 hours);10. End of production run meeting participation (500 hours);11. Quality planning participation (1,000 hours);12. Electrical and solid state equipment problem diagnoses and repairs (500 hours);13. Hydraulic equipment problem diagnoses and repairs (200 hours);14. Pneumatic equipment problem diagnoses and repairs (200 hours); and15. Grinder, trim press, chiller, and other secondary equipment problem diagnoses and

repairs (300 hours).

Within this work process schedule framework, there is some flexibility for tailoringapprentice training to a particular sponsor’s specific needs. The precise requirements of aparticular Plastic Process Technician Apprenticeship program are worked out between theprogram sponsor and the appropriate BAT or SAC representative at the time of programapplication and approval.

BAT-related technical instruction requirements for the Plastic Process TechnicianApprenticeship include the study of plastics and plastics manufacturing processes, especially theuse of injection molds, and the physical properties of plastics testing, robotics theory andoperation; applied mathematics; basic electricity and wiring, industrial electricity, and thefundamentals of electronics; pneumatic components and circuits; blueprint reading; and statisticalprocess controls.

In general, there is no cost to the individual applicant to participate in the BAT’s PlasticProcess Technician Apprenticeship Program. Particular programs may have some costs and feesassociated with the classroom component of the program, but this varies by program.

Mississippi Polymer Institute

The Mississippi Polymer Institute (MPI), located on the campus of The University ofSouthern Mississippi, was funded by the Mississippi Legislature in 1993. In 1996, the MPI wasaccepted into the National Institute of Standards and Technology (NIST) ManufacturingExtension Partnership (MEP) and became the “Mississippi Polymer Institute and PilotManufacturing Extension Center.” Since MPI’s initial funding in 1993, the capital investmentin 41 new facilities in the state have provided 2542 employment opportunities and have helpedexpansion at 258 existing facilities.


MPI was created to assist Mississippi manufacturers as a provider of technical services tothe polymer and polymer-related industries. During the first six years of service, MPI made over1200 consultation visits, trained 700 manufacturing workers, completed over 400 technicalservice projects, and completed 800 technical consultation projects for Mississippi polymer orpolymer-related businesses. In addition, MPI produced 3,237 rapid prototype models during thesame time frame.

MPI provides in-plant seminars or customized training taught by technical experts. Theyoffer CD interactive courses for injection molding and extrusion. The short courses they provideinclude:

Plastics ExtrusionIntroduction to Plastics Materials and Processing TechnologyOptimizing Physical Properties of Polymer Products Short CourseIntroduction to Injection MoldingInjection Molding Productivity and Product Quality ImprovementDesign of Experiments Short Course

State Board of Community and Junior Colleges (SBCJC) Workforce Development

Nancy Alley, Coordinator for Workforce Development for the SBCJC, reports that theWorkforce Development or Career Centers at Mississippi’s fifteen community colleges havereceived very few requests for polymer specific projects during the past three years. The onlytwo community colleges indicating any activities with the polymer industry are NortheastCommunity College in Booneville and Itawamba Community College in Tupelo. NortheastCommunity College has provided extrusion training to Southern Diversified Industries within thepast three years. The only recent request for a workforce development project in Mississippispecific to the polymer industry has been with Itawamba.

The project involves working with Spartech Industries in Tupelo to develop a plastic/polymer workforce development project. Spartech Industries is asking for state assistance topurchase an interactive software training program for injection molding machine operationtraining from Paulson Training Programs.

The software program will provide training for new hires, operations, andtechnicians. The software includes a training management function which can deliver, track, andreport all training activity. This training format supports Spartech’s current multi-shift operation,provides flexibility to schedule and train employees with the anticipated company growth, andoffers consistent training for all. The software also will be used as a pre-hiring tool to ensureconsistency of training for all employees. Spartech’s interest in working with Itawamba to usethis method of training delivery is their belief that employees will benefit more from the softwaretraining because they can learn at their own rate of speed, repeating lessons as necessary. Inaddition, the report feature for the manager portion of the software provides a process to betterevaluate the competency and efficiency of individual employees.


While only two community colleges indicated polymer-specific workforce developmentactivities, all fifteen of the state’s community colleges provide industry training opportunities formanufacturing or business skills. Among those offered are: lockout/tagout, electrical and motorcontrol, basic electricity, safety, forklift training, hydraulics, CPR, bloodborne pathogens, hazardcommunication (HAZCOM), blueprint reading, statistical process control, team management,anger management, stress management, and conflict resolution. For additional information, seethe Educational Program Profiles in the Appendix.

Step 2 Demand Analysis

Knowledge/Skill Requirements, Required Academic Preparation, and Career Opportunities for thePolymer Cluster Workforce

Creating a workforce development plan for the polymer industry cluster requires ananalysis of the work that is required in the industry to determine the requisite skills andknowledge that individuals need to do their jobs. Data collection activities were designed todetermine those skills and knowledge requirements for the Mississippi polymer industry.

The focus group and role expert interviews yielded the following information relating tothe polymer industry:

• Fourteen roles that define areas of polymer industry work.

• Key deliverables or outputs that the polymer industry workforce must produceor provide to others for the seven technical roles.

• Competencies required to produce polymer industry outputs for the seventechnical roles.

• The Mississippi Polymer Industry Competency Model, defining major areas ofpolymer industry practice.

• Role Profiles for each technical role for the polymer industry which describesthe outputs for each role, the quality requirements for each output, thecompetencies needed to produce the outputs, and the relevant ethical issuesfacing individuals in each role (Workforce Development Role Profile Appendix).


Fourteen roles were defined as areas of polymer work in Mississippi:

1) Consultation – Providing specialized expertise for the purpose of facilitating problemsolving and decision-making.

2) Data Management – Collecting, storing, retrieving, interpreting, and distributingorganizational data.

3) Financial Analysis – Applying financial and statistical principles to ensure the short-termfinancial stability and long-term growth of the organization.

4) Human Resource Development – Continuous improvement and maintenance of theorganization’s human resources that will result in improved operational efficiency and amore valuable asset base.

5) Information Systems Management – Assessing information management requirementsand designing systems and applications that provide solutions to business, scientific,engineering, and/or technical demands.

6) Maintenance – Continuous, preventative, and predictive maintenance of equipment,machinery, tools, and other functional devices.

7) Management – Coordinating operations through the direction of the organization’sfinancial, physical, and/or human resources in a manner that is consistent with theorganization’s strategy.

8) Marketing – Assessing customer needs and promoting the organization’s products andservices to customers.

9) Materials Planning – Preparing and organizing the acquisition, transportation, and/orsequential use of materials needed for business operations.

10) Production – Operating and tending to equipment and processes that produce a finishedproduct.

11) Quality Assurance – Promoting business excellence through the continuousimprovement, and integration of, the management systems of the organization to ensurethat its inputs, outputs, and processes meet or exceed the quality expectations of itscustomers.

12) Research and Development – Performing studies, experiments, and/or research analysesto generate new understanding and innovations.

13) Risk Assessment – Maintaining regulatory compliance to local, state, and federalagencies; and seeking continuous improvement in employee safety, environmentalawareness, and product liability.

14) Technical Support – Applying scientific and mathematical principles to find feasiblesolutions to problems and opportunities.

Polymer Roles


Listed below are products, services, conditions, and information important to polymerwork. A particular job in the polymer industry may involve responsibility for many of theseoutputs or only a few. The list should be viewed as a menu of various job elements of polymerwork. A listing of outputs by role and the quality requirements associated with each output areshown in the Role Profile Appendix.

1. Accident investigations2. Accident prevention3. Analytical and physical testing4. Attainment of departmental material requests5. Breakdown diagnosis6. Communication of material deliveries7. Continuous improvement8. Cycle time determination for new products9. Delivery scheduling10. Development and implementation of a risk management plan11. Development of mechanical instructional procedures12. Development of new equipment13. Development of new processes14. Development or specification of new materials15. Documentation16. Equipment calibration17. Equipment operation18. Equipment preparation19. Equipment rebuilding20. Equipment repair21. Evaluate and upgrade equipment22. Facility (non-process) maintenance23. Feasibility studies24. Identification of maintenance issues25. Installation support26. Interaction with marketing in product innovation27. Inventory control28. Inventory replenishments29. Maintenance Planning30. Material collection31. Materials forecast32. Negotiation of price quotations and contracts with suppliers33. New equipment installation34. New product development35. New product specifications36. Order materials necessary for business operations37. Preventative Maintenance (PM)38. Process improvement39. Process optimization

Polymer Outputs


40. Product liability reviews41. Product Manufacturing Instructions (PMIs)42. Production forecasting and planning43. Quality assurance training44. Quality certification attainment45. Quality checks46. Rectification of customer complaints47. Recycling48. Redesign of existing equipment49. Relationship development50. Safety programs and training51. Specifications and data sheets for new products52. Statistical process control53. Supplier qualification54. Technical support55. Test equipment calibration56. Utilization of SPC (Statistical Process Control) and other production data57. Vendor risk assessment58. Vendor risk communication


The following list of 36 competencies are the key areas of knowledge and skill thatenable individuals to perform polymer work, to produce the outputs or key deliverables for theirjobs.

1) Business Understanding: Understanding the inner workings of businessfunctions and how business decisions affect financial or non-financial workresults.

2) Change Management: Helping people adapt to the changes brought on by newtechnologies and helping them to see the value and benefits of new technologies.

3) Coaching: Helping individuals recognize and understand personal needs, values,problems, alternatives, and goals.

4) Communication: Applying effective verbal, nonverbal, and writtencommunication methods to achieve desired results.

5) Compounding: Understanding the process of blending polymers with additivesto produce a product for the forming industry.

6) Customer Focus: Dedication to meeting or exceeding the expectations andrequirements of both internal and external customers.

7) Decision-Making Ability: Selecting, in a timely manner, appropriate course(s)of action that is (are) consistent with the organization’s mission, vision, andstrategies.

8) Design of Experiments: Familiarity with this discipline and method ofexperimentation that is used to gather and analyze data and to efficientlydetermine process and product interactions.

9) Electromechanical Technology: The ability to install, maintain, and useelectromechanical measuring and control instruments.

10) Equipment-Based Computer Skills: The ability to understand and usevocabulary and grammatical rules for instructing equipment-based computers toperform specific tasks.

11) Extruding: Understanding the process of forming a continuous piece of matterby forcing it through a shaping orifice.

12) Film Formation: Understanding the process of forming film by casting,extrusion, or other film-producing processes.

13) Finishing and Decorating: Understanding the methods used to decorate a part,or otherwise provide required surface appearance or properties.

14) Group Process Understanding: Understanding how groups function;influencing people so that group, work, and individual needs are addressed.

Polymer Competencies


18) Leadership: The ability to influence and guide members of the organization toachieve organizational objectives.

19) Model Building: The ability to develop frameworks from complex andtheoretical ideas.

20) Molding: Understanding the methods used to form various types of productshapes.

21) Organization: The use of coordination and communication as tools used toaccomplish tasks in a systematic manner.

22) Print Reading: The ability to interpret drawings, schematics, and otherstructural prints.

23) Process Management: Providing support and coordination for one or manyoperational processes, with the objectives being increased efficiency and wastereduction.

24) Processing: Understanding the methods used to control processes to achieveproduct, safety, quality, and environmental specifications.

25) Project Management: Planning, implementing, and evaluating assignments toensure that the desired outcomes of the assignment are produced on time andwithin budget.

26) Questioning: Gathering information from stimulating insight in individuals andgroups through use of interview, questionnaires, and other probing methods.

27) Relationship Building Skills: Establishing relationships and networks across abroad range of people and groups.

28) Research Skills: Selecting, developing, and using methodologies such asstatistical and data collection techniques for formal inquiry.

29) Resin and Additive Formulation: Knowledge of polymer materials to achieveappropriate formulation for intended purpose.

30) Rheology: Understanding formulation and flow of matter, including linkage andcross-linking of molecules to achieve specific properties.

31) Self-Knowledge / Self-Management: Knowing one’s personal values, needs,

15) Hydraulics and Pneumatics: The ability to install, maintain, and use hydraulicand pneumatic systems.

16) Industry Understanding: Understanding the vision, strategy, goals, and cultureof other companies within the polymer processing industry

17) Innovativeness: The ability to generate unique ideas and concepts that, ifapplied, could provide the organizations with a competitive advantage.


interests, style, and competencies and being able to manage their effects onothers.

32) Systems Thinking: Identifying inputs, throughputs, and outputs of a subsystem,system, or suprasystem and applying that information to improve the applicationof polymer science; realizing the implications of these technologies on manyparts of an organization, process, or individual; taking steps to address theimpact of applying these technologies.

33) Teamwork: Successfully and efficiently working and communicating withgroup or project members such that the team’s final output meets or exceedspredefined expectations.

34) Technical Communications: The ability to translate and communicate requiredtechnical information to non-technical operational people.

35) Time Management: Valuing time and ensuring that it is used efficiently for alltasks.

36) Troubleshooting: The ability to formulate and evaluate alternative solutions tocurrent or forecasted problems and implement the appropriate course(s) of actionusing rigorous logic and other probing methods.

* Core Competencies

Technical Competencies Compounding Electromechanical Technology Equipment-Based Computer Skills* Extruding Film Formation Finishing and Decorating Hydraulics and Pneumatics Molding Print Reading Processing* Resin and Additive Formulation* Rheology Technical Communications*

Business Competencies Business Understanding* Change Management* Industry Understanding Organization* Process Management* Project Management* Time Management*

Analytical Competencies Decision-Making Ability* Design of Experiments* Innovativeness* Model Building Troubleshooting* Research Skills* Systems Thinking*

Interpersonal Competencies Coaching* Communication* Customer Focus* Group Process Understanding* Leadership* Questioning* Relationship Building Skills* Self-Knowledge / Self-Management* Teamwork*

When presented with a list ofcompetencies, role experts were asked toidentify the level of importance and thelevel of expertise required for their workrole. Four categories of polymercompetencies were identified as therequired knowledge, skills, and abilities tofunction in polymer roles. The fourcategories of competencies — technical,business, analytical, and interpersonal – areshown in Table 1. Core competencies(those critical competencies that cut acrossall roles) are identified with an asterisk.The following scale was used to rank theimportance of competencies: 0-insignificant, 1 – minimal importance, 2 –moderate importance, 3 – somewhatimportant, 4 – very important, 5 – critical.Competencies identified as requiredpolymer competencies have mean ratingsgreater than or equal to 3.5 or were rated a4 or higher by 50 percent or more of therole experts for the role. A snapshot ofcompetencies required for each work role isprovided in Figure 2.

Table 1: Mississippi Polymer IndustryCompetency Model


TECHNICAL ROLES

Maint

enan

ce

Mater

ials

Plan

ning

Prod

uctio

n

Quali

ty As

sura

nce

Rese

arch

&

Deve

lopme

nt

Risk

As

sess

ment

Tech

nical

Supp

ort

Compounding ● ●

Electromechanical Technology ●

Equipment-Based Computer Skills ● ● ● ● ●

Extruding ●

Film Formation

Finishing and Decorating ●

Hydraulics and Pneumatics ●

Molding ●

Print Reading ● ● ● ●

Processing ● ● ● ● ● ● ●

Resin and Additive Formulation ● ● ●

Rheology ● ●

Tech

nica

l

Technical Communications ● ● ● ● ● ●

Business Understanding ● ● ● ● ●

Change Management ● ● ● ● ● ●

Industry Understanding ● ● ● ●

Organization ● ● ● ● ● ● ●

Process Management ● ● ● ● ● ● ●

Project Management ● ● ● ● ● ● ●

Bus

ines

s

Time Management ● ● ● ● ● ● ●

Decision-Making Ability ● ● ● ● ● ● ●

Design of Experiments ● ● ● ● ●

Innovativeness ● ● ● ● ● ● ●

Model Building ● ●

Troubleshooting ● ● ● ● ● ● ●

Research Skills ● ● ● ● ●

Anal

ytic

al

Systems Thinking ● ● ● ● ● ●

Coaching ● ● ● ● ●

Communication ● ● ● ● ● ● ●

Customer Focus ● ● ● ● ● ● ●

Group Process Understanding ● ● ● ●

Leadership ● ● ● ● ● ● ●

Questioning ● ● ● ●

Relationship Building Skills ● ● ● ● ● ●

Self-Knowledge / Management ● ● ● ● ● ● ●

Inte

rper

sona

l

Teamwork ● ● ● ● ● ● ●

Figure 2: Mississippi Polymer Industry Competency Model


Ethical Challenges

Focus group participants developed a list of ethical challenges that role experts were askedto respond to according to the relevance of each ethical challenge to their corresponding polymerrole. The following list represents the list of relevant ethical issues for all polymer professionals.For a breakdown of relevant ethical issues by role, see the Workforce Development Role ProfileAppendix.

1) Maintaining appropriate confidentiality.2) Protecting all intellectual property.3) Ensuring truth in claims, data, and recommendations.4) Avoiding conflicts of interest.5) Managing personal biases.6) Recommending solutions appropriate for the customers’ or users’ needs.7) Pricing or costing products or services fairly.8) Exercising power or authority judiciously.9) Making misleading claims regarding return-on-investment.10) Using client information for personal gain.11) Falsifying data.12) Assigning credit appropriately.13) Making false claims about another’s behaviors or accomplishments.14) Withholding information or establishing unrealistic expectations.15) Be objective when examining and verifying the analysis of data.16) Put in a full day’s work for a full day’s pay.17) Sacrificing pollution control and environmental standards for high productivity.18) Exchanging a safe work environment for organizational gain.

Career Opportunities

A variety of career opportunities exist within the polymer industry. For a profile ofstrategic occupations, see the Occupational Profiles Section of the Appendix. Since plasticsprocessing is the largest polymer industry subcluster within the state, a profile of technical jobopportunities for plastics has also been included in the Occupational Profiles Section of theAppendix. Additionally, future trends in occupations are covered in the Occupational and Train-ing Forecast section in Task One of this project.


Step 3 Gap Analysis

Current Workforce Skills

The 36 competencies identified by the Mississippi Polymer Industry Competency Modeldepict the categories of knowledge, skills, and abilities that the current polymer workforce needsto perform their work roles successfully. As mentioned in the Supply Analysis, the focus groupparticipants noted workforce skill deficiencies in the following areas: basic literacy, scienceeducation, general manufacturing, process-specific manufacturing, interpersonal/communication, deductive reasoning/comprehension, and basic computing. The skilldeficiencies identified by the focus groups can be addressed by focusing on the technicalcompetencies in the Model. The identified deficiencies are the required industry competencies.While the technical competencies represent a major need for skill improvement, other skilldeficiencies noted by the focus group participants suggest that the current workforce also lackscertain analytical and interpersonal competencies.

Future Needs

The panel of expert contributors at the focus group, with over 200 years of polymerindustry experience, identified the following forces most likely to influence polymer industrywork and competencies in Mississippi within the next five years:

1) Increased technical requirements for the industry (due to increased automation).2) More self-directed/self-motivated workforce.3) Greater workforce competition from new industries in the state.4) Increased need for pure technical training and 2-year technical degrees.

These findings strongly suggest that the technical skills identified in the MississippiPolymer Industry Competency Model will become increasingly important in the upcoming years.Advances in technology and the increased use automation will require a more technicallycompetent workforce. Therefore, the lack of technical competencies possessed by the currentworkforce will become an even greater obstacle for polymer companies in the future. Thefindings also suggest that certain interpersonal competencies, particularly self-knowledge/self-management, will also increase in importance over the next few years.

Analysis of Changing Demographics

The technological advances and increased use of automation among polymer companiessuggests that the technical aptitude of polymer industry workers is likely to increase as well.New workers must be trained to operate new machinery. Further, workers in the dynamicpolymer industry must be more technically “flexible” in response to the increased frequency ofprocess restructurings that companies undergo to increase productivity levels. Two-yeartechnical degrees and demonstrated technical ability will be critical considerations forrecruitment and advancement.

Automation is likely to replace manual labor in several types of occupations. Joboutlook forecasts for strategic occupations can be found in the Occupational Profiles Section ofthe Appendix. The need for cross-training and multi-tasking capabilities among remainingworkers is likely to increase as companies strive to be competitive.


The target industries identified in Task One have all demonstrated growth nationally andregionally. These industries include: plastics plumbing fixtures; custom compounding of plastic resins;plastic pipe; laminated plastic plate, sheet, and profile shapes; rubber and plastic hose and belting;gaskets, packaging, and sealing devices; mechanical rubber goods; and coatings and adhesives. It can bepresumed that employment in these target industries is likely to grow in response to the increaseddemand for these products. Therefore, workers are likely to migrate from other polymer relatedindustries to these target clusters.

The Occupational and Training Forecasts segment of Task One offers further information onchanging demographics of the polymer workforce, and in particular, the graying of the regionalworkforce. The demographic findings in this segment reinforce the need for focused improvement onthe technical skills of the workforce.

Areas of Educational Action

In order for polymer subclusters to thrive, educational opportunities that support these industriesmust exist within the state’s educational system. Both the quality and quantity of educational programssupporting the polymer industry must be sufficient for developing a qualified workforce. In addition, theenrollment of students within these programs must be optimized through active program promotion. TheEducational Program Profiles section of the Appendix and the Target Industries Table in the Appendixhighlight the state’s deficiencies in program enrollment and in offering programs that are specific to thepolymer industry.


PHASE 2 - Human Resource Development Strategies

Data analysis of the identified technical roles indicated that some roles are similar to others interms of their most important competencies. Although the sample sizes for each role were too small toperform either a cluster analysis or factor analysis of the data, the roles can be compared according to thenumber of common competencies. The roles with similar competency profiles are displayed in Figure 3.In this figure, connected roles have at least 85 percent of their most important competencies in common.These relationships can be judged as career paths for technical professionals in the polymer industry.

For example, the Quality Assurance role shown at the center of Figure 3 is related to MaterialsPlanning, Risk Assessment, Research & Development, and Technical Support. The Production andMaintenance roles are main line functions that do not share at least 85 percent of the Maintenance andProduction role competencies with the other technical roles.

One of the factors that perhaps delineate the distinction that separates out the Maintenance andProduction roles is the increased education and experience requirements for the remaining technicalroles. This finding suggests that one of the hurdles for transitioning from the Maintenance andProduction roles is the individual’s need for increased education and experience. Another finding is theQuality Assurance role shares competencies with more individual roles than any other role, whichindicates the critical relationship between Quality Assurance and all technical roles. This findingreinforces focus group comments about the critical importance of quality assurance in the polymerindustry.

Strategy for Using Polymer Industry Roles

Quality Assurance

Materials Planning Research & Development

Risk Assessment Technical Support

Production Maintenance

Education & E

xperience

Figure 3: Polymer Industry Roles

The significance of Figure 3 for career development for the polymer workforce is thatorganizations can identify the roles that are most likely to share competencies and cross train individualsto assume new roles. For those organizations that wish to transition their maintenance and productionpersonnel, appropriate education and experience opportunities must be provided to give them thecompetencies they need for the other technical roles. This information is also useful to helporganizations know what competencies and roles they need to focus on when hiring and managing thepolymer workforce.


PHASE 3 - Recommendations for Workforce Development InfrastructurePromote the implementation of Process Technology Curricula within community colleges.

The goal of the Process Technology curricula is to prepare individuals for a career as aprocess technician. Process technicians are typically responsible for monitoring and controllingrefinery and plant equipment; however, this job has become much more complex in recent years.Process technicians now need a stronger set of technical, business, analytical, and interpersonalskills to perform their jobs successfully.

The Gulf Coast Process Technology Alliance was formed as a regional alliance to addresstraining issues for process technicians, but evolved in scope to the International Process Technol-ogy Alliance. The Alliance is comprised of representatives from industry, education, and govern-ment that are united in the goal of providing a skilled process technician workforce. In effect, theAlliance developed an industry-sanctioned, skills-based standardized curricula for process techni-cians. The finalized curricula leads to an Associates in Applied Science (AAS) degree offeringfrom other community colleges that are part of the Alliance.

Objectives

• Development of Standard job-based curriculum

• Use of quality instructional materials

• Delivery of curricula by qualified instructors

• Promotion of education for process technicians

• Development of wide-spread industry and community support

• Promotion of high standards for process technician education programs

• Placement of Process Technology graduates at the beginning of successful career paths

• Building strong partnerships between education, industry, community and government

Means

• Sharing of instructional material

• Cooperative development projects

• Collective professional development of staff and faculty

• Sharing of equipment and facilities

• Collaborative graduate placement efforts

• Collaborative grant applications and resource development

• Coordinated promotional campaigns

• Use of “strength in numbers” to overcome obstacles


There are several reasons why the Process Technology Curricula stands to benefit thestate’s polymer industry. The Process Technology Curricula is designed to teach students skillsthat are fundamental to the processing industry. With the broad range of polymer industrysubclusters that utilize a variety of manufacturing processes, there is an inherent need to providestudents with essential processing skills that are applicable to a variety of different polymersubclusters. The Process Technology Curricula represents an immediate opportunity for educa-tion providers to begin generating a workforce with processing skills needed in the polymerindustry. The Mississippi Gulf Coast Community College has been actively pursuing the integra-tion of the IPTA curriculum.

The topics covered in this two-year associates degree program have a strong correlation tothe lack of basic processing skills that the industry focus group participants identified. The basicProcess Technology curricula covers process technology in relation to equipment, systems,operations, quality, and instrumentation. Other courses that can be incorporated into the degreecurriculum involve safety/health/environment and process troubleshooting. These topics matchseveral of the industry roles identified by the focus group participants and link to several of thework competencies identified by role experts.

Finally, the International Process Technology Alliance presents an excellent opportunityfor the state to form key industry, education, community, and government alliances. Through thisnetworking and collaborating portal, Mississippi can enhance the quality and industry reputationof its processing workforce.

Promote the implementation of the National Certification in Plastics (NCP) Certified Operator Programamong plastics companies.

The Society of the Plastics Industry, Inc. (SPI) is one of the principal trade associationsfor the U.S. plastics industry, with a total membership of approximately 2000 firms. In the mid-1990s SPI, in conjunction with other industry leaders, recognized that rapid growth within theplastics industry was resulting in a serious shortage of qualified machine operators, a problemwhich was worsened by high employee turnover.

To help resolve these problems, plastics industry employers turned to SPI to develop acertification program that would provide plastics workers a clearer career path within the industry.In 1998, SPI completed this development and inaugurated its National Certification in Plastics(NCP) – Certified Operator Program. By providing plastics workers with a clearer career paththrough the use of skill certification, the NCP Program was intended to expand the supply ofexperienced workers in this industry.

Anyone seeking a career in the plastics industry is eligible to register and take the NCP –Certified Operator examination specific to one of four basic machine operator processes – injec-tion molding, extrusion, blow molding, or thermoforming – as well as skills common to all fourprocesses. There are no prerequisite industry employment requirements. SPI does recommend,however, that a candidate have at least two years experience in plastics processing, and someformal training in many, if not all, of the major content areas of the exam. The NCP certificationis valid for four years from the date the candidate passes the exam.

The NCP – Certified Operator Program examination is a 2½ hour objective test consistingof 150 multiple-choice questions. The exam is given via a computer and the candidate’s resultsare provided on the computer screen immediately upon completion of the test. The exam was


developed by SPI and industry experts under the direction and guidance of The Chauncey GroupInternational, a subsidiary of the Educational Testing Service in Princeton, New Jersey. The costfor the candidate taking the NCP Certified Operator examination is $195 for employees ofcompanies that are members of SPI, and $235 for employees of non-member companies. If thecandidate fails the exam, a six-month waiting period is required before a candidate can retake theexam.

The following content areas make up the body of knowledge which a candidate is ex-pected to know in order to pass the test.

1. Basic process control, including knowledge of machine operations and procedures.

2. Preventive and Corrective Action on Primary and Secondary Equipment, includingidentifying, troubleshooting, and correcting equipment problems; taking preventiveactions; and resolving customer product complaints.

3. Handling, storing, packaging and delivering plastics materials, including knowledge ofthe products, customer specifications, and packaging.

4. Quality assurance, including knowledge of key quality assurance concepts and practicesas well as inspection and testing.

5. Safety, including equipment, hazardous material, and plant safety procedures; and acci-dent reporting, emergency, and routine cleanliness procedures.

6. Safety regulations and information, including use of personal protective equipment;identification of potentially hazardous and dangerous conditions; and awareness of U.S.Occupational Safety and Health Administration (OSHA) and Environmental ProtectionAgency (EPA) regulations and requirements.

7. Tools and equipment, including knowledge and maintenance of various power toolequipment (e.g., grinders, conveyors, chillers, scales, dryers, etc.) and hand tool equip-ment (e.g., clippers, utility knives, checking devices, etc.).

8. General knowledge, including base knowledge in communication techniques, basic math,and mechanical principles; and manufacturing knowledge in team building and workgroup techniques, time management, quality improvement, and general manufacturingpractices.

By promoting the implementation of National Certification in Plastics among plasticscompanies, the knowledge base and credibility of operations personnel within the state’s polymerindustry will be enhanced. Since plastic processing is by far the largest polymer subcluster withinthe state of Mississippi (see Figure 8 in Task 1), there is an increased importance to have definedand measurable standards for plastics operations employees. Plastics certification provides thecontinuing education and measurement of technical competence among the incumbent workforcethat is highly valued by the plastics industry. The areas of knowledge required for the NCPcredential are consistent with the technical roles identified in this study for the Mississippipolymers and plastics industry.

Currently, Baxter Healthcare in Cleveland, MS, is the only company supporting theNational Certification in Plastics within the state of Mississippi.


Workforce Development Models for theMississippi Polymer Cluster

SUMMARY

Section

3D

Research findings suggest that there is a shortage of knowledge, skills, and abilities among thestate’s polymer industry labor pool. Focus group participants pinpointed a lack of basic skills in thefollowing areas: basic literacy, general manufacturing, process-specific, deductive reasoning, computer,and interpersonal. Industry representatives also identified a lack of science education in the fields ofchemistry and polymer science among the available workforce.

While only one community college currently offers a Plastics Technology program, 64 programsin 16 categories (See Educational Program Profiles Section of the Appendix) are offered in technical areasthat support the target industries described under Task One. If the community college that offers thePlastics Technology program cannot recruit outside its own district, then perhaps core or elective coursesor units of instruction could be integrated into the 16 identified community college programs that arealready in place that support the target industry cluster.

The International Process Technology Alliance (IPTA) and the Center for the Advancement ofProcess Technology (CAPT) developed a two-year process technology program through an NSF fundedpartnership between education and industry. The core courses developed include: Introduction to ProcessTechnology, Process Technology I (Equipment), Process Technology II (Systems), Process Technology III(Operations), Process Instrumentation, Process Troubleshooting, Quality, and Safety, Health and Environ-ment. The process technology curricula offers courses that could be immediately implemented as core orelective coursework in the 16 programs supporting the target industry cluster identified in Task One.

Seven areas of technical knowledge and a general knowledge category are required for OperatorCertification with the Society of Plastics Industries. The seven identified technical areas are consistentwith the seven technical roles defined by the Mississippi Polymer Industry Competency Model. Iforganizations do not seek training or retraining from the Mississippi educational infrastructure, they canfocus training and retraining efforts based on these seven technical areas.

The Mississippi Polymer Industry Competency Model developed through The University ofSouthern Mississippi’s Workforce Training and Development program provides an important way toarticulate the kinds of workers needed in the polymer industry. The Competency Model provides aresearch-based set of competencies for hiring organizations to use to improve employee recruitment andselection and to create competency-based performance management systems to help professionallydevelop existing employees in the industry. Five of the seven technical roles share 85 percent of the samecompetencies making it easier to cross train between roles. However, the Maintenance and Productiontechnical roles do not share critical competencies, suggesting that organizations must provide training andeducational opportunities specifically for these roles.

The Model offers a research framework for industry training providers and academic institutionsto identify levels of expertise for required competencies to use for creating the most effective and efficient


training and education opportunities.

The Mississippi Polymer Industry Competency Model provides a tool to help promote andinfluence state polymer industry education and training in response to labor demands. Existing resourceswill be used to create systemic change in the academic infrastructure that will be able to support thedevelopment of a polymer industry workforce. The Competency Model provides a systematic solution forpublic and private organizations to help develop a well-trained workforce as awareness intensifies aboutthe potential of Mississippi’s polymer industry.

The industry association being formed can use this study as the catalyst to provide leadership topublic and private organizations in polymer workforce learning and performance. The association canserve as a center to disseminate existing and recommended polymer industry curricula information,models for polymer industry practices, and maps of national standards to competencies for industry andeducators in order to develop a polymer workforce for Mississippi.

The Mississippi Polymer Industry Competency Model offers an incredible capacity to developand nurture an expanding pool of skilled workers who will be in increasing demand as the need forpolymer and plastics expertise increases. The Model helps move toward the goal of developing a well-trained workforce for the polymer industry.

The participation from industry and educational community representatives was key to thisresearch initiative. These partnerships are consistent with the commitment of USM’s Workforce Trainingand Development program to create a customer/industry driven model and to utilize existing resources tocreate systemic change in the way students and the incumbent workforce are trained and retrained. Thevalue of the Mississippi Polymer Industry Competency Model will ultimately be measured by its imple-mentation as a tool for performance management, employee recruitment and selection, career develop-ment, and as a curriculum framework for training and education.


CONCLUSIONS

Worker retraining is a major concern because of the impact of rapid technological change on thisindustry. Employers are looking for efficient and effective ways to develop a workforce that has the skillsnecessary to compete in the 21st century. A comprehensive workforce development program needs to bearticulated that targets professional development for engineers and senior technical staff, as well astechnicians and operators.

Partnerships are essential between community colleges, universities, and employers to designtraining programs specifically for the polymer industry. The curricula must incorporate traditional lectureand discussion with valuable hands-on experience. Professionals from the polymer industry are needed asadjunct instructors to provide the experience and expertise not available in a textbook. The PolymerTrade Association will be positioned to provide leadership to expand on the existing partnerships inMississippi.

The apprenticeship program offered through the Department of Labor and the SPI nationalcertifications provide standards that allow individual organizations to respond to entry level and existingworkforce development needs. The seven areas of knowledge recommended by the Society of PlasticsIndustries for machine operator certification are consistent with the seven technical roles identified in thisresearch as outlined in the Mississippi Polymer Industry Competency Model. This framework givestraining providers, academic program developers, and human resource managers a workforce develop-ment tool.

The establishment of a state-level training organization through the Mississippi Polymer Institute(or a similar industry entity) is needed for collaboration with community colleges in providing customizedtraining to polymer companies. By utilizing a state-mandated organization for the coordination of cus-tomized training, there are opportunities for synergies among custom-designed curricula and a largerresource base. These collective opportunities may not be possible when customized training is locallycoordinated by community colleges.

An incentive system for motivating and subsidizing individual workers to attain additionaltraining is needed within the polymer industry. Unless incumbent workers are provided with incentives togain new knowledge and/or refresh their existing knowledge, then polymer companies run the risk ofmaintaining the status quo instead of developing a prepared workforce. With the prevalence of industrydynamisms such as technological advances and process restructurings, it is critical for polymer companiesto train and retrain its workers.

There is a definite need to design and establish academic concentration areas within the two-yearcollege system that support polymer and polymer-related industries. Incorporation of the existing PlasticsTechnology program into other community college curricula is pivotal to providing a larger plasticsprocessing labor pool. Considering the dominating size of the plastics processing subcluster inMississippi’s polymer industry and the number of target industries that involve plastic processing, it is ofparticular importance to have additional Plastics Technology programs in the community colleges to meetthe demand of plastics companies.

Resin production, rubber processing, and coatings were also identified as target industries. Animmediate way that the state can begin generating a workforce that possesses a basic skill set for all targetprocessing industries is through the implementation of the Gulf Coast Process Technology Alliance’scurricula for process technicians. The Process Technology Curricula relates back to several of the rolesidentified by the polymer focus group participants and the competencies identified by role experts in thestate’s polymer workforce. Not only will this curricula help to meet the workforce needs of several


polymer subclusters, but the state’s involvement in this Alliance will provide an excellent opportunity fornetworking and collaboration among industry stakeholders.

The community college system must not only increase the number of polymer and polymer-related programs offered, but attempts to increase the number of program enrollees must also be exerted.Although program recruiting among community colleges is bound by geographical limitations, it isimportant for the state to explore collaborative opportunities that circumvent the recruiting restrictions.Otherwise, the restrictions stand to suffocate the resources and student interest in polymer programs. Atthe same time, community colleges must actively promote the program offerings and career opportunitiesthat exist through polymer curricula to students within their jurisdictions. Career fairs at local highschools are a prime example of promotional portals. In order to meet the workforce demands of the state’spolymer industry, an increase in student program enrollment is paramount.

The exploration of integrating nationally recognized curricula with national certification programspresents a value-adding opportunity for training and educational programs. By combining the efforts ofeducation with those of industry to provide a qualified workforce, both parties stand to benefit from aunified goal of creating a knowledgeable labor pool. Instead of separating classroom learning fromcertification testing, there may be an opportunity for both objectives to be met at the same time.

It is critical to conduct a cross-reference of industry classification (SIC) codes and communitycollege program (CIP) codes to ensure that program offerings are appropriate for industry training needs.Although these two codes were once compared to serve a checks-and-balances purpose, it appears thatensuring linkages between industry and education has not been adequately maintained. It is a fundamen-tal premise that industry categories should correlate with educational program categories. Unless thiscross-referencing is conducted on a periodic basis, the state stands to waste resources and lose valuableindustry opportunities. For a comparison of target industry employment needs to current educationalprograms supporting those needs, see Table A-4 in the Appendix.

The value of using the Mississippi Polymer Industry Competency Model is its use to (1) helporganizations recruit and select the best employees for polymer jobs; (2) better manage the existingpolymer workforce; (3) help as a career development tool for individual employees; and (4) use as anorganization development tool.


Polymer Cluster Policy Recommendations

Section

4The following policy recommendations are based on best practices, the analysis of the strengths

and weaknesses of Mississippi, and feedback from existing industry and various state resources. Itshould be noted that these recommendations are in no particular order. In the future, it is anticipated thatthe private sector will expand and prioritize these recommendations.

Cluster Association

• Mississippi Technology Alliance (MTA) should spearhead a polymer and plastics association topromote networking within the industry and to create public awareness. This group could serveas a unified lobbying organization to stimulate new policy within the state legislature.

• Mississippi Development Authority (MDA) and MTA should financially support the annualMississippi Polymer Conference, hosted by the USM School of Polymers and High PerformanceMaterials, to promote the development of the cluster.

• Develop an online sourcing consortium to reduce the cost of purchasing materials, supplies, andequipment. Perhaps this could be done in cooperation with the Mississippi Contract ProcurementCenters.

Workforce Training & Development

• Articulate a comprehensive workforce development program that targets professionaldevelopment for engineers and senior technical staff, as well as technicians and operators.

• Foster partnerships between two-year colleges, universities, and employers to design trainingprograms specifically for the polymer industry.

• Utilize the newly formed cluster association to expand existing partnerships in Mississippi andencourage businesses to request workforce development support from the Mississippi WorkforceDevelopment and Career Centers located at the state’s fifteen community colleges.

• Promote the implementation of apprenticeship programs as a workforce development tool fortraining providers, academic program developers, and human resource managers.

• Promote the implementation of certification programs to increase the knowledge base andcredibility of operations personnel within the polymer industry.

• Set up a state level training organization through the Mississippi Polymer Institute designed towork with community colleges to provide customized training

• Develop a system to motivate and subsidize individual workers in the industry to get additionaltraining.

• The state should develop interactive workforce development software to be used for polymer-specific training in Mississippi businesses.

• Promote polymer and polymer-related program offerings and related career paths to prospectivestudents of community colleges.

• Explore the integration of nationally recognized curricula such as the process technology coursesdeveloped by the Center for the Advancement of Process Technology and the NationalCertification in Plastics offered by the Society of Plastics Industry (SPI).


• Undergo a cross-referencing of industry classification (SIC) codes to educational programclassification (CIP) codes for community colleges to identify linkages and/or gaps that existbetween industry needs and educational offerings.

• Encourage organizations to learn how to successfully integrate the Mississippi Polymer IndustryCompetency Model.

Entrepreneurship

• The programs and policies already in place at MDA and MTA should incorporate the specificneeds and interests of the polymer industry.

• The polymer and plastics association in tandem with MDA and MTA should create a venturecapital forum to create an environment, which encourages entrepreneurial development andinvestment in the polymer industry.

• Explore the feasibility of and encourage the creation of technology incubators proximate touniversity campuses to stimulate commercialization of spin-offs related to university research inpolymers and plastics.

• Provide incentives for in-state commercialization of patents produced at Mississippi universities.There are now 51 patents held by the Polymer Science faculty at USM, most of which are relatedto environmentally friendly coatings. MSU and MU also hold patents in polymer related areaswith commercialization potential.

• Technology transfer programs such as the Mississippi Manufacturing Extension Partnership(MMEP) and the Mississippi Enterprise for Technology (MET) related to commercializingresearch produced at the Stennis Space Center should be extended to university research orduplicated, if necessary, to help spin off university research.

Academic Support

• Find funding to enhance the MMEP, MET, Mississippi Polymer Institute (MPI), MDA, MTA andany other such state agencies which are active in assisting polymer related companies inMississippi. A part of this recommendation entails seeking congressional help in keeping andenhancing NIST funding and Mississippi Legislative funding where appropriate.

• Find “enhanced” funding support for polymer related university research centers, such as theUniversity of Southern Mississippi School of Polymers and High Performance Materials, theUniversity of Mississippi Pultrusion Lab, and the Chemical Engineering and Wood ProductsResearch programs at Mississippi State University. This support could be in the form ofmatching grants for commercialization of new product development opportunities, which couldcreate jobs in Mississippi.

• Find funding to design and establish academic concentration areas within the two-year collegesystem that support polymer and polymer-related industries.

• Explore the potential of an exchange among two year college and university faculty and privatesector top-level managers (through sabbatical and executive leave time) to encouragecollaboration and the fostering of new ideas.

• Encourage joint marketing to outside entities of the research capabilities of Mississippiuniversities to enhance research and development in the state.

• The state should explore collaborative opportunities among the fifteen community colleges toovercome recruiting restrictions currently bound by geographical limitations.


Research Consortium

• Form a public/private research consortium including the state’s comprehensive researchuniversities to explore commercialization opportunities related to wood composites, medicaldevices, packaging, PVC products, coatings and adhesives, and thermoset resin products.

Image Enhancement of the State

• Market the state’s polymer cluster by placing articles and testimonials in national publicationsand by placing ads paid for by public/private sponsorship.

• MDA, MTA, community colleges, universities and other state partners should work together toput on a career fair to attract workers and to promote the state’s polymer industry expertise andresearch capabilities.

Energy Reliability

• Provide incentives to encourage utility companies to develop dual feeds to industrial parks and tolarge electricity users located outside of industrial parks.

• Develop policy to promote alternative fuels and processes such as natural gas, fuel cells, back uppower systems, etc.

Scrap and Recycling

• Identify and stimulate a market demand for recycled polymer products.• Encourage state support of local recycling/sorting programs.

Cost Savings/Factor Driven Strategies

• The MDA should enhance existing or create new targeted incentives and finance programs toattract growth segments of the polymer industry, which are identified in the target industrysection of this report.

• Explore the utilization of shared-use facilities by polymer companies as a means of competingwith international companies, which already employ shared-use facility strategies.

• Develop stronger existing industry support at all levels by raising awareness of existingprograms, which benefit the polymer cluster. MDA, MTA, MPI, utility company, and universityinvolvement in the cluster association would help in this regard.


REFERENCES

American Plastics Council (2001). The Resin Review. Washington, D.C.: American Plastics Council.

Bohlander, G., Scott, S. & Sherman A. (2001). Training and development. In Managing humanresources (12th ed). Cincinnati, OH: South-Western College Publishing.

Clark, G. et al. (2000). The Oxford Handbook of Economic Geography. Oxford, UK: OxfordUniversity Press.

Dalton, M. (1997). Are competency models a waste? Training & Development, 51 (10), 46-49.

Dubois, D. & Rothwell, W. (2000). The competency toolkit. Amherst, MA: Human ResourcesDevelopment Press, Inc.

Dun & Bradstreet (2001). Marketplace CD-ROM. New York, NY: Dun & Bradstreet.

Edison Electric Institute (2001). Typical Electric Bills and Average Rate Report. San Jose, CA:EEI

Gilley, J. & Maycunich A. (2000). Performance consulting. in Organizational learning, performanceand change. Cambridge, MA: Perseus Publishing.

Heckler, Daniel (2001). Occupational employment projections to 2010. in Monthly Labor Review.Washington, DC: US Department of Labor.

Ingalls, J. (1979). Throw away your job descriptions and write competency models. Training, 16(4),32-34.

Porter, M. (1990). The Competitive Advantage of Nations. New York, NY: The Free Press.

Sanchez, J. (2000). The art and science of competency models. Personnel Psychology, 53, 509-511.

Society of Industrial and Office Realtors (2000). Comparative Statistics of Industrial and OfficeReal Estate Markets. Washington, DC: SIOR

Taimerica Management Company. Transportation Cost Model (unpublished database).

Taimerica Management Company. Database of Issued Patents 1963-99 (unpublished database).

The Southern Technology Council and the Southern Growth Policies Board (1997). Workforce resourcesfor the plastics industry. Research Triangle Park, NC: Southern Growth Policies Board.

U. S. Bureau of the Census (1999). Annual Survey of Manufacturers. http://www.census.gov/econ/www/ma0300.html

U. S. Bureau of the Census (1997). Census of Manufacturing. www.census.gov/epcd/www/econ97.html

U. S. Bureau of Labor Statistics. Covered Employment and Wages. http://www.bls.gov/cew/home.htm


U.S. Bureau of Labor Statistics. Occupational Employment Statistics. www.bls.gov/empoccl.htm

U. S. Bureau of Labor Statistics. Metropolitan Area Occupational Statistics. www.bls.gov/oes

Zemke, R. & Zemke S. (2000). Putting competencies to work. In Training and development yearbook.Paramus, NJ: Prentice-Hall.


List of Appendices

PRIVATE SECTOR RECOMMENDATIONS

DEFINITIONS

SURVEY INSTRUMENTS

PLASTICS SURVEY RESULTS

POLYMER SURVEY RESULTS

TABLES

MAPS

EDUCATIONAL PROGRAM PROFILES

OCCUPATIONAL PROFILES

WORKFORCE DEVELOPMENT ROLE PROFILES


Private Sector Recommendations


The following recommendations were taken directly from polymer company private sectorinterviews.

• Mississippi’s workforce training programs need both consolidation and upgrading.• The state needs a better method of offering specialized employee training.• More emphasis should be placed at the community college level on training electrical and

maintenance personnel.• An emphasis should be placed on recruiting original equipment manufacturers to the state, as these

companies tend to be large users of plastics products.• Industrial recruiters within the state should be providing information to all new companies on

available services and products related to their needs, which are offered or produced in Mississippi.• Establish a toxicology-testing lab at a Mississippi university.• Recruit suppliers/manufacturers of PVC resins, pigments, latex polymers, carbon black, and color

concentrates into the state.• Recruit more wood products companies that are large users of polymer finishes.• The state needs to explore methods of assisting facilities under consideration of closure due to

consolidation.• Establish an ISO certified national testing lab at the Mississippi Polymer Institute.• Due to the difficulty for companies located outside of the Hattiesburg area to send employees to

USM for short courses or training in polymer science, USM should offer such courses in differentparts of the state to allow access by companies.

Definitions


Thermosets and Thermoplastics

The two basic groups of plastic materials are the thermoplastics and the thermosets. Thermoplasticresins consist of long molecules, each of which may have side chains or groups that are not attached toother molecules (i.e., are not crosslinked). Thus, they can be repeatedly melted and solidified by heatingand cooling so that any scrap generated in processing can be reused. No chemical change generallytakes place during forming. Usually, thermoplastic polymers are supplied in the form of pellets, whichoften contain additives to enhance processing or to provide necessary characteristics in the finishedproduct (e.g., color, conductivity, etc.). The termperature service range of thermoplastics is limited bytheir loss of physical strength and eventual melting at elevated temperatures.

Thermoset plastics, on the other hand, react during processing to form crosslinked structures that cannotbe remelted and reprocessed. Thermoset scrap must be either discarded or used as a low-cost filler inother products. In some cases, it may be pyrolyzed to recover inorganic fillers such as glass reinforcements,which can be reused. Thermosets may be supplied in liquid form or as a partially polymerized solidmolding powder. In their uncured condition, they can be formed to the finished product shape with orwithout pressure and polymerized by using chemicals or heat.

The distinction between thermoplastics and thermosets is not always clearly drawn. For example,thermoplastic polyethylene can be extruded as a coating for wire and subsequently crosslinked (eitherchemically or by irradiation) to form a thermoset material that no longer will melt when heated. Someplastic materials even have members in both families; there are, for instance, both thermoset andthermoplastic polyester resins.

Definition of the Various Plastic Resins

Acetal

An engineering thermoplastic introduced to industry in 1956 as a potential replacement for die-castmetals. Acetal resins are produced by the polymerization of purified formaldehyde [CH2O] into bothhomopolymer and copolymer types. Industrial end-users are very familiar with the acetals in the formof gears, bearings, bushings, cams, housings, conveyors and any number of moving parts in appliances,business machines, etc., Consumers may be more familiar with applications such as automotive doorhandles, seat belt components, plumbing fixtures, shaver cartridges, zippers and gas tank caps. Acetalsare extremely rigid without being brittle. They have a high melting point, high strength, good frictionalproperties and resistance to fatigue.

Acrylics

Were introduced in 1936 in the form of hard, rigid and transparent materials. Acrylics were used inWorld War II as aircraft canopies. Other applications include: lighting diffusers; outdoor signs; automobiletail lights; washbasins and sinks; safety shields; furniture (e.g., tables); skylights, and large-area enclosuresfor shopping centers, swimming pools, restaurants, etc., and as room dividers. The outstanding resistanceto long-term exposure to sunlight and weathering is one of the more important characteristics of acrylic.Also notable is the exceptional clarity and good light transmission (cast acrylic sheet transmits about

Sources of the following definitions include: Chemical Economics Handbook, SRI International,Modern Plastics Encyclopedia, Whittington’s Dictionary of Plastics, The Condensed Chemical Dictio-nary, The SPI Plastics Engineering Handbook, and The Story of the Plastics Industry (SPI).


92% total light). Acrylics are a family of thermoplastic resins of acrylic esters [CH2CHCOOR] ormethacrylic esters [CH2C(CH3)COOR]. The acrylates may be methyl, ethyl, butyl, or 2-ethylhexyl.Usual methacrylates are the methyl, ethyl, butyl, laural and stearyl.

Acrylonitrile-Butadiene-Styrene (ABS)

Chemically, this family of thermoplastics are called terpolymers, because they are made of three differentmonomers: acrylonitrile, butadiene and styrene, to create a single material that draws on the best propertiesof all three. ABS was introduced to the market in 1948, primarily as a result of activities that had takenplace during the war years in the development of synthetic rubbers. ABS possesses outstanding impactstrength and high mechanical strength, which makes it suitable for use in tough consumer and industrialproducts, including: appliances, automotive parts, pipe, business machines and telephone components.In the 1960s, ABS found wide outlet as a substrate for metallizing (i.e., applying a chrome-like metallicfinish to the plastic) and appeared in such products as shower heads, door handles, faucet handles andautomotive front grilles. A class of thermoplastic terpolymers including a range of resins, all preparedwith usually more than 50% styrene [C6H5CHCH2] and varying amounts of acrylonitrile [CH2CHCN]and butadiene [CH2CHCHCH2]. The three components are combined by a variety of methods involvingpolymerization, graft copolymerization, physical mixtures and combinations thereof.

Alkyds

This plastic was developed in 1926 and was promptly put to work in liquid form as enamels, paints,lacquers, and similar coatings for automotibles, refrigerators, stoves and similar products—still thelargest use for alkyds. In 1948, however, an alkyd compound was introduced as a molding material forcompression molding electrical applications like circuit breaker insulation, coal forms, capacitor andresistor encapsulation, cases, housings, and switchgear components. Major properties are in the electricalarea where alkyd molding materials offer excellent dielectric strength. Alkyds also have excellent heatresistance and are dimensionally stable under high temperatures. Alkds are thermosetting unsaturatedpolyester resins produced by reacting an organic alcohol with an organic acid, dissolved in and reactedwith unsaturated monomers such as styrene [C6H5CHCH2], diallyl phthalate [C6H4(COOCH2CHCH2)2],diacetone acrylamide [CH3COCH2C(CH3)2CHCHCONH2] or vinyl toluene [CH2CHC6H4CH2]. Typicalapplications are electrical uses, automotive parts, and as coatings.

Cellulosics

Cellulosics go back to the very start of the plastics indusry when John Wesley Hyatt created the firstcommercial U.S. plastic, cellulose nitrate, in 1868. Several other important members of the cellulosicsfamily, each with its distinct properties, were introduced in the 1900s. Since then, cellulosics have beenused to make knobs, appliance housings, handles, toys, packaging, consumer products, and automotiveparts, among many other products. Cellulosics are thermoplastic resins manufactured by chemicalmodification of cellulose [(C6H10O5)n]. Included are: cellophane—regenerated cellulose made by mixingcellulose xanthate [ROCSSH] with a dilute sodium hydroxide [NaOH] solution to form a viscose, thenextruding the viscose into an acid bath for regeneration; cellulose acetate—an acetic acid ester[CH3COOC2H5] of cellulose; cellulose acetate butyrate—a mixed ester produced by treating fibrouscellulose with butyric acid [CH3CH2CH2COOH], butyric anhydride [(CH3CH2CH2CO)2O], acetic acid[CH3COOH] and acetic anhydride [(CH3CO)2O] in the presence of sulfuric acid [H2SO4]; cellulosepropionate— formed by treating fibrous cellulose with propionic acid [CH3CH2CO2H] and acetic acidand anhydrides in the presence of sulfuric acid; cellulose nitrate—made by treating fibrous cellulosicmaterials with a mixture of nitric [HNO3] and sulfuric acids.


Coumarone-Indene

Thermoplastic resin obtained by heating mixtures of coumarone [C8H6O] and indene [C6H4CH2CHCH]with sulfuric acid [H2SO4] to promote polymerization. These resins have no commercial applicationswhen used alone. They are used primarily as processing aids, extenders and plasticizers with otherresins in asphalt floor tile.

Diallyl Phthalate (DAP)

The term DAP is used both for the monomeric and polymeric forms. The monomer[C6H4(COOCH2CHCH2)2] is used as a cross-linking agent in unsaturated polyester resins. As a polymer,it is used in the production of thermosetting molding powders, casting resins and laminates.

Epoxy

Epoxies are used by the plastics industry in several ways. One is in combination with glass fibers (i.e.,impregnating fibers with liquid epoxy resins) to produce high-strength composites or reinforced plasticsthat provide heightened strength, electrical and chemical properties, and heat resistance. Typical usesfor epoxy-glass reinforced plastics are in aircraft components, filament wound rocket motor casings formissiles, pipes, tanks, pressure vessels and tooling jigs and fixtures. Epoxies are also used in theencapsulation or casting of various electrical and electronic components and in the powder coating ofmetal substrates. Major outlets for epoxies also include adhesives, protective coatings in appliances,industrial equipment, gymnasium floors, etc., and sealants. Epoxies are thermosetting resins that, in theuncured form, contain one or more reactive epoxide or oxirane groups. These epoxide groups serve ascross-linking points in the subsequent curing step, in which the uncured epoxy is reacted with a curingagent or hardener. Cross-linking is accomplished through the epoxide groups as well as through hydroxylgroups that may be present. Most conventional unmodified epoxy resins are produced fromepichlorohydrin (chloropropylene oxide) [CH2OCHCH2Cl] and bisphenol A [(CH3)2C(C6H4OH)2]. Theother types of epoxy resins are phenoxy resins, novolac resins, and cycloaliphatic resins.

Fluoropolymer

Fluoropolymers are known for their inertness to most chemicals, resistance to high temperatures,extremely low coefficients of friction and excellent dielectric properties which are relatively insensitiveto temperature and power frequency. Typical applications for fluoropolymers are electrical/ electronicuses and pipe and chemical processing equipment and non-stick coatings for cookware and otherapplications. Fluoropolymers make up a family of thermoplastic resins analogous to polyethylene inwhich some of the hydrogen atoms attached to the carbon chain are replaced by fluorine or fluorinatedalkyl groups. In some cases, other halogens such as chlorine are also part of the molecule. The mostcommon commercial fluoropolymers are: FEP (fluorinated ethylene-propylene) from tetrafluoroethylene[C2F4] and hexa-fluoropropylene [C3F6]; PTFE (polytetra fluoroethylene) from the polymerization oftetrafluoroethylene and ethylene [C2H4]; PFA (perfluoroalkoxy) from tetrafluoroethylene andperfluoropropyl vinyl ether [C3H7C4OF5]; PCTFE (polychlorotrifluoro-ethylene) from chlorotrifluoro-ethylene monomer [C2F3CI]; CTFE-VDF (polychlorotrifluoroethylenevinylidene fluoride) fromchlorotrifluoroethylene and vinylidene fluoride [C2H2F2]; E-CTFE (polyethylenechlorotrifluoroethylene)from chlorotrifluoroethylene and ethylene; PVDF (polyvinylidene fluoride) from vinylidene fluoridemonomer; and PVF (polyvinyl fluoride) from vinyl fluoride monomer [C2H3F].


Melamine-Formaldehyde

This plastic is a member of the amino family (which also includes urea) and is probably best known tothe public as colorful, rugged dinnerware. However, it also finds use in many household goods, invarious electrical applications, and in bonding, adhesives and coatings. products. Melamines offer extremehardness, excellent colorability and arc-resistant nontracking characteristics. Thermosetting resins formedby the condensation reaction of formaldehyde [HCHO] and melamine [C3N3(NH2)3]. The chemistry isanalogous to that of ureaformaldehyde except that the three amino groups of melamine provide morepossibilities for cross-linking, are more highly reactive, and all six hydrogen atoms of melamine willreact, forming the hexamethyl compound.

Nitrile Resins

This family of resins started to appear in the late 1960s and early 1970s. They are called barrier resinssince one of their prime attributes is their resistance to the transmission of gas, aroma or flavor, makingthem useful in packaging applications. These thermoplastic resins are composed of acrylonitrile[CH2CHCN] along with comonomer such as acrylates, methacrylates, butadiene [CH2CHCHCH2] andstyrene [C6H5CHCH2]. Both straight copolymers and copolymers grafted onto elastomeric backbonesare available.

Nylon

The nylon fiber industry was born in 1939 when 64 million pairs of nylon stockings were sold—and tothis day, most people still associate nylon with fibers. However, in the 1940s and 1950s work continuedon developing nylon compounds that could be molded and extruded or otherwise processed like plastics.Typical applications for nylons are in automotive parts, electrical/electronic uses, and packaging. Nylonis a generic name for a family of long-chain polyamide engineering thermoplastics which have recurringamide groups [-CO-NH-] as an integral part of the main polymer chain. Nylons are synthesized fromintermediates such as dicarboxylic acids, diamines, amino acids and lactams, and are identified bynumbers denoting the number of carbon atoms in the polymer chain derived from specific constituents,those from the diamine being given first. The second number, if used, denotes the number of carbonatoms derived from a diacid. Commercial nylons are as follows: nylon 4 (polypyrrolidone)-a polymerof 2-pyrrolidone [CH2CH2CH2C(O)NH]; nylon 6 (polycaprolactam)-made by the polycondensation ofcaprolactam [CH2(CH2)4NHCO]; nylon 6/6-made by condensing hexamethylenediamine[H2N(CH2)6NH2] with adipic acid [COOH(CH2)4COOH]; nylon 6/10-made by condensinghexamethylenediamine with sebacic acid[COOH(CH2)8COOH]; nylon 6/12-made fromhexamethylenediamine and a 12-carbon dibasic acid; nylon 11-produced by polycondensation of themonomer 11-amino-undecanoic acid [NH2CH2(CH2)9COOH]; nylon 12-made by the polymerization oflaurolactam [CH2(CH2]10CO)or cyclododecalactam, with 11 methylene units between the linking -NH-CO- groups in the polymer chain.


Petroleum Resins

Thermoplastic resins obtained from a variable mixture unsaturated monomers recovered as byproductfrom cracked and distilled petroleum streams. They also contain indene [C6H4CH2CHCH], which iscopolymerized with a variety of other monomers including styrene [C6H5CHCH2], vinyl toluene[CH2CHC6H4CH3], and methyl indene [C6H3CH3CH2CHCH]. Typical applications are adhesives, printinginks, rubber compounding, and surface coatings.

Phenolic

These thermosetting resins are credited with being the first commercialized wholly synthetic polymeror plastic, and the second major plastic (the first being cellulose nitrate). The basic raw materials areformaldehyde [HCHO] and phenol [C6H5OH], although almost any reactive phenol or aldehyde can beused. The phenols used commercially are phenol, cresols [CH3C6H4OH], xylenols [(CH3)2C6H3OH], p-t-butylphenol [C4H9C6H4OH], p-phenylphenol [C6H5C6H4OH], bisphenols [(C6H4OH)2], and resorcinol[C6H4(OH)2]. The aldehydes used are formaldehyde and furfural [C4H3OCHO]. In the uncured andsemi- cured condition, phenolic resins are used as adhesives, casting resins, potting compounds, andlaminating resins. As molding powders, phenolic resins can be found in electrical uses. They are alsoused in such applications as: automotive distributor caps, fuse blocks and connectors and appliancehandles, knobs and bases. Phenolic is the most popular binder for holding the various plies of woodtogether in plywood.

Polyamide-Imide

Engineering thermoplastic resins produced by the condensation reaction of trimellitic anhydride[OCC6H2C2O3] and various aromatic diamines. Typical applications are in the aerospace, automotiveand heavy equipment industries.

Polyarylates

Can be used for automotive, appliance and electrical applications requiring oustanding heat resistance.They are engineering thermoplastic resins produced by interfacial polymerization of an aqueous solutionof the disodium salt of bisphenol A [(CH3)2C(C6H4OH)2] with phthalic acid chlorides [C6H4(CO)2Cl2] inmethylene chloride (CH2Cl2]. The major use of polyarylates is in outdoor lighting.

Polybutylene

Thermoplastic resins offering high flexibility, resistance to creep, cracking and most chemicals.Polybutylene is produced via stereospecific Ziegler-Natta polymerization of butene-1 monomer[CH2CHCH2CH3]. Typical applications are pipe and packaging film.

Polycarbonate

Polycarbonates were developed commercially in 1957 and are one of the pioneering members of thefamily of “engineering thermoplastics” created to compete with die-cast metals. They are strong, toughand rigid, while having the ductility normally associated with softer, lower-modulus thermoplastics.They also have excellent electrical insulating characteristics, maintained over a wide range of temperaturesand loading rates. Polycarbonates are transparent and can be processed in a variety of ways, includinginjection molding, extrusion, blow molding and rotational molding. Typical applications are glazing,appliances, water bottles and electrical uses. Polycarbonates are engineering thermoplastic resins produced


by (1) phosgenation of dihydric phenols, usually bisphenol A [(CH3)2C(C6H4OH)2], (2) ester exchangebetween diaryl carbonates and dihydric phenols, usually between diphenyl carbonate [(C6H5O)2CO]and bisphenol A and (3) interfacial polycondensation of bisphenol A and phosgene [COCl2].

Polyethylene

This plastic came to the fore during the World War II years, first as an underwater cable coating, then asa critical insulating material for such vital military applications as radar cable. It was not until the end ofthe war that the plastic was taken off allocation and freed for consumer use. From that point on, its risein popularity for both consumer and industrial uses was so spectacular that polyethylene became thefirst plastic in the U.S. to sell more than 1 billion pounds a year. Today, it is still the largest volumeplastic in the United States; in fact, it is the largest in the world. Applications for polyethylenes aremany and varied, including: packaging films; trash, garment, grocery and shopping bags; moldedhousewares; toys; containers; pipe; drums; gasoline tanks; coatings and many others. Polyethylenes arethermoplastic resins obtained by polymerizing the gas ethylene [C2H4]. Low molecular weight polymersof ethylene are fluids used as lubricants; medium weight polymers are waxes miscible with paraffin;and the high molecular weight polymers (i.e., over 6000) are the materials used in the plastics industry.Polymers with densities ranging from about .910 to .925 are called low density; those of densities from.926 to .940 are called medium density; and those from .941 to .965 and over are called high density.The low density types are polymerized at very high pressures and temperatures, and the high densitytypes at relatively low temperatures and pressures. A relatively new type called linear low densitypolyethylene is manufactured through a variety of processes: gas phase, solution, slurry, or high pressureconversion. A high efficiency catalyst system aids in the polymerization of ethylene and allows forlower temperatures and pressures than those required in making conventional low density polyethylene.Copolymers of ethylene with vinyl acetate, ethyl acrylate, and acrylic acid are commercially important.

Polyimides

Thermoset polyimides were introduced in the 1960s, followed in the early 1970s by thermoplasticpolyimides. They are used in wire enamels, laminates, adhesives, gears, covers, bushings, piston rings,valve seats, and in solution form as a laminating varnish. Polyimides are characterized by repeatingimide linkages: There are four types of aromatic polyimides: (1) condensation products made by thereaction pyromellitic dianhydride (PMDA) [C6H2(C2O3)2] and aromatic diamines such as 4,4'-diaminodiphenyl ether [(C6H4NH2)2O]; (2) condensation products of 3,4,3',4'-benzophenonetetracarboxylic dianhydride (BTDA) [(C6H5)2CO(C2O3)2] and aromatic amines;(3) the reaction of BTDAand a diisocyanate such as 4,4'-methylene-bis(phenylisocyanate) [OCNC6H4CH2C6H4NCO]; and (4) apolyimide based on diaminophenylindane and a dicarboxylic anhydride such as carbonyldiphthalicanhydride [OC6H4(CO)2COC6H4(CO)2]. Thermoset polyimides are produced in condensation polymersthat possess reactive terminal groups capable of subsequent cross-linking through an addition reaction.

Polyphenylene Oxide, Modified

Engineering thermoplastic resins produced by the oxidative coupling of 2, 6-dimethylphenol[(CH3)2C6H3OH] (xylenol), then blended with impact polystyrene. Typical applications are electrical/electronic uses, business machine parts, appliances, and automotive parts.

Polyphenylene Sulfide

Engineering thermoplastic resins produced by the reaction of p-dichlorobenzene [C6H4CI2] with sodiumsulfide [Na2S]. A thermoplastic, PPS exhibits excellent heat resistance, as well as outstanding chemical


resistance, high stiffness and good retention of mechanical properties at elevated temperatures. Themajor use for polyphenylene sulfide is in electrical/ electronic parts and automotive parts.

Polypropylene

Another “workhorse” of the plastics industry, polypropylene is one of the high-volume “commodity”thermoplastics. Polypropylene was developed out of the Nobel award-winning work of Karl Zieglerand Professor Natta in Europe, and came to the United States in 1957. It belongs to the “olefins” family,which also includes the polyethylenes, but it is quite different in its properties. It has a low density, isfairly rigid, has a heat distortion temperature of 150 to 200 degres F (making it suitable for “hot-fill”packaging applications), and excellent chemical resistance and electrical properties. Polypropylenesare also very easy to process in all conventional systems. (For information on processing methods, see:processing methods.) Major applications of commercial PP are packaging, automotive, appliances andcarpeting. Polypropylene is made by polymerizing propylene [CH3CHCH2] and in the case of copolymerswith monomers, with suitable catalysts, generally aluminum alkyl and titanium tetrachloride mixedwith solvents. The monomer unit in polypropylene is asymmetric and can assume two regular geometricarrangements: isotactic, with all methyl groups aligned on the same side of the chain, or syndiotactic,with the methyl groups alternating. All other forms, where this positioning is random, are called atactic.Commercial polypropylene contains 90-97% crystalline or isotactic PP with the remainder being atactic.Most processes remove excess atactic PP. This by-product is used in adhesives, caulks, and cablefillingcompounds.

Polystyrene

Styrene monomer and the polystyrene resin made from the monomer remained as chemical curiositiesfor 80 years following their discovery in 1845. It wasn’t until 1925 when commercial production ofstyrene monomer began in Germany and the U.S. that polystyrene attracted interest, and it wasn’t untilafter World War II when monomer capacity could be diverted from its essential wartime use for styrene-butadiene synthetic rubber that polystyrene became an important plastic. Today, polystyrene is amongthe most heavily used commodity thermoplastics. Foamed polystyrene is familiar to consumers as foamcups and containers, protective packaging and building insulation. Polystyrene is also widely used inother packaging and foodservice products, such as trays, disposable plates, cutlery and tumblers. Otherapplications include: automotive parts, toys, housewares, appliance parts, wall tiles, radio and TVhousings, furniture, floats, luggage and many more. High molecular weight thermoplastic resins producedgenerally by the free-radical polymerization of styrene monomer [C6H5CHCH2] which can be initiatedby heating alone but more effectively by heating in the presence of free-radical initiator (such as benzoylperoxide [(C6H5CO)2O2]. Typical processing techniques are modified mass polymerization or solutionpolymerization, suspension polymerization, and expandable beads for foam.

Polyurethanes

Introduced commercially in 1954, the urethanes have made an impact on a broad spectrum of U.S.industry. They are extremely versatile plastics in terms of the forms in which they are available: flexibleor rigid foams, solid elastomers (or rubbers), coatings, adhesives and sealants. Their versatility alsoextends to chemical structure in that, although the urethanes are generally considered to be thermosets,there are grades of urethane elastomers that are thermoplastic in nature and are supplied in pellet formfor molding, calendering and extrusion. Polyurethane’s major and best known form, however, is afoamed or “cellular” material. Like all urethanes, the foams are prepared by first reacting two liquidcomponents—polyols and isocyanates—together. In the presence of a blowing agent, this reaction willproduce a foamed material having excellent thermal insulating properties, and, in fact, polyurethane


foam is widely used in building insulation. The foams can either be soft and flexible or tough, and rigid,with all the possible variations in-between. Flexible foams have oustanding cushioning characteristics,excellent energy-absorbing properties and long life. They are used in furniture, cushioning, carpetunderlay, bedding, packaging, textiles and automotive seating and safety padding. Rigid foams offeroutstanding insulating values, excellent compressive strength, good dimensional stability and bouyancy.Besides building insulation, they are also found in refrigerators, trucks, boats (for flotation), and in theconstruction of furniture components. As coatings, polyurethanes impart excellent protective anddecorative effects to wood, metals, rubber, textiles, concrete, paper, leather, other plastics and manyother materials. In the form of elastomers, polyurethanes offer superior abrasion resistance and toughness,and are used in applications in which good performance and long service life are important: printingrolls, gaskets and seals, cable insulation, drive and conveyor belts, solid tires and automotive applications.Elastomers can also be processed by reaction injection molding, an important technique for producingautomotive panels, front ends and bumpers. The commonly used isocyanates for manufacturingpolyurethanes are toluene diisocyanate (TDI) [CH3C6H3(NCO)2], methylene diphenyl isocyanate (MDI)[OCNC6H4CH2C6H4NCO], and polymeric isocyanates (PMDI), obtained by the phosgenation ofpolyamines derived from the condensation of aniline [C6H5NH2] with formaldehyde (HCHO]. Polyols(with hydroxyl groups) are macroglycols which are either polyester or polyether based. Polyurethaneelastomers and resins take the form of liquid castings systems thermoplastic elastomers and resins,microcellular products, and millible gums.

Polyvinyl Acetate (PVAc) & Other Vinyls

Polyvinyl acetate is a thermoplastic resin produced by the polymerization of vinyl acetate monomer[CH3COOCHCH2] in water producing an emulsion with a solids content of 50-55%. Most polyvinylacetate emulsions contain co-monomers such as n-butyl acrylate, 2-ethyl hexyl acrylate, ethylene, dibutylmaleate and dibutyl fumarate. Polymerization of vinyl acetate with ethylene also can be used to producesolid vinyl acetate/ethylene copolymers with more than 50% vinyl acetate content. Polyvinyl alcohol(PVOH) is produced by methanolysis or hydrolysis of polyvinyl acetates. The reaction can be controlledto produce any degree of replacement of acetate groups. Co-polymers of replaced acetate groupings andother monomers such as ethylene and acrylate esters are commercially important. Polyvinyl butyral(PVB) is made by reacting PVOH with butyraldehyde [CH3(CH2)2CHO]. Polyvinyl formal is made bycondensing formaldehyde [HCHO] in presence of PVOH or by the simultaneous hydrolysis andacetylization of PVAc. Polyvinylidene chloride is made by the polymerization of 1,1-dichloroethylene[CH2CCL2]. Typical applications for the above resins are adhesives, paints, coatings and finishes, andpackaging.

Polyvinyl Chloride

The birth of polyvinyl chloride, or PVC or vinyl as it is better know to the public, dates back to aGerman patent in the 1910s, but it was not until the late 1920s that a technically useful product wasintroduced in the U.S. By the start of World War II, the significance of plasticizing PVC (that is, addinga chemical known as a plasticizer to make PVC flexible and processible) was fully realized. It wasduring the war that the real importance of this polymer became apparent when, due to the acute shortageof rubber, many companies turned to PVC and began to realize its advantages. Because of its wide usein applications that are close to consumers, such as upholstery, flooring, wall coverings, pipe, siding,apparel and accessories, vinyl is one of the better-known plastics. Vinyls are used mainly for theirchemical and weathering resistance, high dielectric properties, or abrasion resistance. Vinyl is also dipmolded into gloves, slush molded into boots and foamed to make calendered flooring, leather-likeupholstery, shoe fabrics and carpet backing. Vinyls are thermoplastic resins produced by thepolymerization of the gas vinyl chloride [CH2CHCl]. Under pressure, vinyl chloride becomes liquefiedand is polymerized by one of four basic processes: suspension, emulsion, bulk, or solution polymerization.


The pure polymer is hard, brittle and difficult to process, but it becomes flexible when plasticizers areadded. A special class of PVC resin of fine particle size, often called dispersion grade resin, can bedispersed in liquid plasticizers to form plastisols. The addition of a volatile diluent or a solvent to theplastisol produces an organosol. Copolymers with vinyl acetate, vinylidene chloride, and maleate andfumarate esters find commercial application.

Styrene Acrylonitrile

Thermoplastic copolymers of styrene [C6H5CHCH2] and acrylonitrile [CH2CHCN]. SAN resins arerandom, amorphous copolymers produced by emulsion, suspension, or continuous mass polymerization.Typical uses include automobile instrument panels and interior trim and housewares.

Styrene Butadiene Latexes & Other Styrene Copolymers

Styrene butadiene latexes usually have a resin content of about 50%. The styrene/butadiene ratio variesfrom 54:46 to 80:20. Most are carboxylated by the use of such acids as maleic [HOOCCHCHCOO],fumaric [HOOCCHCHCOOH], acrylic [CH2CHCOOH], or methacrylic [CH2C(CH3)COOH]. Two typesof styrene-maleic anhydride (SMA) [(COCH)2O] are available: SMA copolymers, with and withoutrubber impact modifier (e.g., DYLARK¬) and SMA terpolymer alloys (e.g., CADON¬). K-Resin¬ is asolid styrenebutadiene copolymer resin. Acrylic monomers are also used in conjunction with styrene(or styrene plus other monomers) to produce specialty resins. For example, there are transparentterpolymers of methyl methacrylate, butadiene, and styrene (MBS), and others of acrylonitrile, an acrylicmonomer, and styrene (AAS). Ion-exchange resins or divinylbenzene-modified polystyrene are anothervariation. SB latexes are used in carpet backing and paper coatings. The other styrenics are used inpaints, coatings, and floor polishes, plus many other uses.

Sulfone Polymers

A family of engineering thermoplastic resins characterized by the sulfone [SO2] group. Polysulfone ismade by the reaction of the disodium salt of bisphenol A[(CH3)2C(C6H4OH)2] with 4,4'- dichlorodiphenylsulfone 4,4'-DCDPS [(C6H4Cl)2SO2]. Polyethersulfone is made by the reaction of 4,4'-DCDPS withpotassium hydroxide [KOH]. Polyphenylsulfone is similar to the other sulfone polymers. Typicalapplications for sulfone polymers are electrical/electronic uses and automotive parts.

Thermoplastic Polyester (Saturated)

As molding and extrusion thermoplastic polyester compounds were introduced in the early 1970s, theyquickly became important new members of the family of engineering thermoplastics. These linearpolyesters are highly crystalline, hard, strong and extremely tough. The most familiar uses are sodabottles and textiles, but they are also used in X-ray film, magnetic tape (audio, video and computer);packaging; metallized film, strapping and labels. They form a family of polyesters in which the polyesterbackbones are saturated and hence unreactive. The most common commercial types are: PET(polyethylene terephthalate) produced by polycondensation of ethylene glycol [CH2OHCH2OH] witheither dimethyl terephthalate (DMT) [C6H4(COOCH3)2] or terephthalic acid (TPA) [C6H4(COOH)2];and PBT (polybutylene terephthalate) produced by the reaction of DMT with 1,4 butanediol[HO(CH2)4OH].


Survey Instruments


SURVEY OF PLASTICS COMPANIES

1

Code: ________ Mississippi Plastics Survey

CONFIDENTIAL

We appreciate your completing this survey so that the development community in Mississippi can understand more about your needs as an industry. The majority of the questions can be answered by placing a check mark in the corresponding box, however, there are a few that require your completion in the blank space provided. The data collected through this survey will be aggregated and analyzed as a whole so that all respondents’ identities are kept confidential. The code number above is our way of tracking responses without divulging the identity of companies. Facility 1. In what year was your facility opened at this location? () Prior to 1980 () 1980-89 () 1990-95 () 1996-2001 2. What part of your company is located in Mississippi? Check all that apply: () Headquarters () Research and Development () Manufacturing () Warehousing/Distribution () Sales () Other_______________________________ 3. Which of the following best describes the ownership/control of your company? Check all that apply: () Locally-controlled single plant () Locally-controlled with multiple Mississippi locations () Ownership/control outside Mississippi () Other (Please specify)_____________________________________ 4. What of the following is your facility’s primary purpose of operation? Check all that apply: () Rubber products () Injection molders () Compounders () Extrusion molders () Profiles and shapes () Mold makers () Converters () Blow molders () Other molder 5. What was the primary reason(s) your company chose Mississippi as a location for this facility? Check all that apply: () Labor supply () Began business locally () Access to suppliers () Business incentives () Access to markets () Overall business costs (taxes, wages, transportation) () Electric power rates? () Proximity to R & D () Other _________________________ OPERATING CONDITIONS Employment 1. Please indicate the number of workers your facility employs in each of the following job categories:

# Production _________ Technician _________ # Office/ clerical______ Managerial _________ # Outsource/contract _______


1

2. Of the following workers listed below, please indicate with an “X” those you: # Employ in your facility # Believe are critical to the success of your firm # Find there are a shortage available for hire

Employ Critical Shortages # Machine/setters& operators # Assemblers and fabricators

# Forklift operators # Tool and die makers # Mold makers # Maintenance mechanical # Shipping clerks

# Mechanical engineers # Electricians # Accountants # CAD/DAM

Programmer/Designer

# CNC machinist # CNC programmer # QC inspectors # Tool engineers # Quality engineers # Sales engineers

Wages What is the average hourly wage paid to production workers in your plant (including incentives)? _____________________________________________________________________________ Fringe Benefits

1. What is the total cost of your fringe benefit package, including government programs? # Cents per hour ______________________ # Percent of wages ___________________%

Labor Recruiting Experience 1. How would you rate your ability to recruit workers for your facility? Not Difficult

At All Somewhat

Difficult

Difficult Very

Difficult Extremely Difficult

N/A

# Unskilled # Semi-

skilled

# Skilled


1

2. If you find it difficult to recruit workers for your operation, please indicate the reason(s). Please check all that apply. . () Lack of qualified workers in the area () Poor work ethic () Lack of quality applicants () Weak or non-response from advertising () Wage rates are too high () Other ___________________________ 3. How frequently do you use any of the following sources to fill vacant positions in your company? Never Rarely Sometimes Often Very

Frequently # Internal hires # Printed Ad- vertisements

# Walk-ins # Internet; user

groups

# Professional associations

# Employee referrals

# Employment services

# Job fairs # MS college or

university recruitment

# USM Polymer Institute

# Recruitment from other firms

# Recruitment from outside state

# H-1B visas # Temp-to-perm # Student

coops; interns

# Other Training Facilities & Programs 1. What training providers have you used to train new and/or existing workers? Please check all that apply. New Worker Training Existing

Worker Upgrade # Community college

system

# Technical college system

# 4-year college/university

# In-house training # Outside vendors # Other


1

2. How would you rate the quality of education and training provided by the state education system as related to your skill needs? Excellent Very Good Good Fair Poor # Community

college

# Technical college # 4 -yr. College/ University

Labor Characteristics 1. How would you rate the quality of the workers at your facility (work attitudes, cooperation, etc.)?

# Excellent # Very Good # Good # Fair # Poor 2. How would you rate your labor productivity?

# Excellent # Very Good # Good # Fair # Poor 3. Approximately what percent of your employees have the following levels of education?

Level Percent

# Four-year degree or higher # Associate degree # Some college or training beyond high school # High school # Less than high school # Vendor certifications

4. How would you rate your employee turnover and absenteeism over the last 3 years? Excellent Very Good Good Fair Poor N/A # Employee

turnover

# Absenteeism Labor-Management Relations Is there an organized union present within your facility?

() Yes () No (If yes, please answer question below) In general, how would you rate your company’s relationship with the union? Excellent _____ Very Good _____ Good ____ Fair _____ Poor _____ Transportation How would you rate the availability of transportation and logistics services used for your business? Excellent Very Good Good Fair Poor N/A • Trucking • Rail • Commercial-airline service • Barge marine transportation • Air cargo • Logistics companies • Availability/warehousing


1

Utilities How important is the cost of electricity to the operation of your facility?

Extremely Important

Very Important

Important Somewhat Important

Not Important At All

Financial Resources Are financial organizations in Mississippi able to tailor financial services to your needs? () yes () no Taxes and Business Climate 1. Please indicate whether you consider the following a locational advantage or disadvantage to operating your facility in Mississippi. Location Advantage Neutral Locational

Disadvantage # Tax policy/fair to

business

# State income tax # State franchise tax # State payroll tax # Liability insurance # Workers’

compensation insurance

# Compliance with environmental rules & regulations

# Permit reviews & approvals

2. Are you currently receiving any of the state business incentives listed below? Please check all that apply. () Payroll tax rebates

() Income tax credits () Sales and use tax exemptions () Property tax exemptions () Inventory tax credits () Business loans () Other _______________________________________

3. Were the state’s business incentives important to the location of this facility? () Yes () No


1

Telecommunications 1. Is broadband service available at your facility? () Yes () No 2. How critical is broadband (DSL, T-1 or ISDN) Internet service to the supply chain management systems of your customers? Please check all that apply: () They have systems in place that require us to maintain broadband service () They are planning systems that will require us to have broadband service () They have systems in place that do not require broadband service 3. What percent of your company’s activity is via the Internet? # Procurement _____________% # Sales _____________%

Related and Supporting Industries 1. How would you rate your company’s access to raw materials or parts at your location? # Excellent ____ # Very Good ____ # Good ____ # Fair _____ # Poor ____

2. Which of the following raw materials, supplies and support services are: # Critical to the performance of your facility. # Which do you source within Mississippi? # In which does a Mississippi location offer a competitive advantage?

Critical Source -

Within MS MS has a Competitive Advantage

Raw Materials # Resins # Compound # Pigments # Fillers # Synthetic rubbers

Support Services

# Injection molders # Extruders # Mold makers # Tool & Die shops # Equipment repair # Testing labs

Supplies

# Scrap # Film & sheet # Profile shapes # Foam resins # Recycled material


1

3. What are the industries or businesses that you believe would be desirable to locate in this area for? # Supplying your industrial materials ___________________________________________________ _______________________________________________________________________________ # Using your product _______________________________________________________________ _______________________________________________________________________________ # Providing support services _________________________________________________________ _______________________________________________________________________________

DEMAND CONDITIONS Markets 1. What kinds of industries buy your product? Please check all that apply. () Automotive () Paper coaters () Construction () Wire coaters () Compound () Industrial packaging () Paints and coatings () Food packagers () Bags () Electronics () Medical () Other_____________________________________ 2. How would you rate your company’s access to markets for your product?

# Excellent # Very Good # Good # Fair # Poor 3. Where are your principal customers located?

() Almost totally within Mississippi () Mostly in Mississippi, Louisiana, Tennessee, Arkansas and Alabama () Within the entire Southeastern states () Throughout the USA () Throughout the world (more than 10% of my sales are exported)

4. Which one of the following statements best describes your customers in Mississippi?

() Our Mississippi customers are more demanding in quality and service than customers outside the state. () Our Mississippi customers demand the same quality and service as customers elsewhere () Our MS customers are more flexible than our customers in other states. () Our MS customers are cost conscious and buy strictly on price--quality is a secondary factor

Firm Strategy and Rivalry

1. Please rank order from 1 to 5, with one being the most important, the following factors as they pertain to your facility’s profitability: _______Being near my customers to reduce shipping costs and time. _______Having a reasonably priced labor supply. _______Having a supply of experienced technicians and engineers. _______Near my raw material vendors to reduce material costs. _______ Reliable and reasonably priced electricity. 2. Where are your company’s principal competitors located?


1

() Within 150 miles () Within 150 to 300 mile () Throughout the USA () Throughout the world Research and Development 1. Does your company have an R&D division? () Yes () No 2. How important are innovation and new product development to your company? () Critical to our future () Important but not critical () Not important 3. How much does your company spend on R&D? () Over 8 percent of sales () Between 4 - 8 percent () Under 4 percent 4. What kinds of industrial R&D could the state’s universities perform to help you improve your business? Check all that apply. () Develop new engineering resins and polymers. () Develop new production techniques and processes. () Provide better-trained engineers. () Perform contract research. () Provide prototype manufacturing at a reasonable cost. () Provide technical assistance for solving problems with new customers or materials. 5. Has your company attained any of the following designations? Please check the one that applies to you. () ISO 9000 () ISO 14000 () QS 9000

6. How useful is the Polymer Institute to your Mississippi operations: () Have not worked directly with them. () Not useful () They are useful at helping develop new markets. () They are useful at helping us produce new products () They are a useful source of trained employees. Future Development 1. Does your company have plans to expand within the next 3 years? () Yes () No (If no, skip to Question ----) If yes, how likely is it that expansion will occur at the Mississippi location?

# Extremely Likely

# Very Likely # Likely # Somewhat Unlikely

# Not Likely At All

2. Please indicate if the expansion is for a new product line or due to market expansion? () New product line (Please specify: _____________________________________ () Market expansion


SURVEY OF POLYMER COMPANIES

1

Code: ________ Mississippi Polymer Survey

CONFIDENTIAL

We appreciate your completing this survey so that the development community in Mississippi can understand more about your needs as an industry. The majority of the questions can be answered by placing a check mark in the corresponding box, however, there are a few that require your completion in the blank space provided. The data collected through this survey will be aggregated and analyzed as a whole so that all respondents’ identities are kept confidential. The code number above is our way of tracking responses without divulging the identity of companies. Facility 1. In what year was your facility opened at this location? () Prior to 1980 () 1980-89 () 1990-95 () 1996-2001 2. What part of your company is located in Mississippi? Check all that apply: () Headquarters () Research and Development () Manufacturing () Warehousing/Distribution () Sales () Other_______________________________ 3. Which of the following best describes the ownership/control of your company? Check all that apply: () Locally-controlled single plant () Locally-controlled with multiple Mississippi locations () Ownership/control outside Mississippi () Other (Please specify)_____________________________________ 4. What of the following is your facility’s primary purpose of operation? () Resin or Rubber Manufacturer () Compounders () Profiles and shapes () Converters 5. What was the primary reason(s) your company chose Mississippi as a location for this facility? Check all that apply: () Labor supply () Began business locally () Access to suppliers () Business incentives () Access to markets () Overall business costs (taxes, wages, transportation) () Electric power rates? () Proximity to R & D () Other _________________________


1

OPERATING CONDITIONS Employment 1. Please indicate the number of workers your facility employs in each of the following job categories:

# Production _________ Technician _________ # Office/ clerical______ Managerial _________ # Outsource/contract _______

2. Of the following workers listed below, please indicate with an “X” those you:

# Employ in your facility # Believe are critical to the success of your firm # Find there are a shortage available for hire

Employ Critical Shortages # Machine/setters& operators # Assemblers and fabricators

# Maintenance mechanics # Shipping clerks

# Chemical Plant Operators # Instrument Mechanics # Chemical Engineers # Mechanical Engineers # Chemists # Electricians # Accountants # Quality engineers # Sales engineers

Wages What is the average hourly wage paid to production workers in your plant (including incentives)? _____________________________________________________________________________ Fringe Benefits

1. What is the total cost of your fringe benefit package, including government programs? # Cents per hour ______________________ # Percent of wages ___________________%

Labor Recruiting Experience 1. How would you rate your ability to recruit workers for your facility? Not Difficult

At All Somewhat

Difficult

Difficult Very

Difficult Extremely Difficult

N/A

# Unskilled # Semi-

skilled

# Skilled 2. If you find it difficult to recruit workers for your operation, please indicate the reason(s).


2. If you find it difficult to recruit workers for your operation, please indicate the reason(s). Please check all that apply. . () Lack of qualified workers in the area () Poor work ethic () Lack of quality applicants () Weak or non-response from advertising () Wage rates are too high () Other ___________________________ 3. How frequently do you use any of the following sources to fill vacant positions in your company? Never Rarely Sometimes Often Very

Frequently # Internal hires # Printed Ad- vertisements

# Walk-ins # Internet; user

groups

# Professional associations

# Employee referrals

# Employment services

# Job fairs # MS college or

university recruitment

# USM Polymer Institute

# Recruitment from other firms

# Recruitment from outside state

# H-1B visas # Temp-to-perm # Student

coops; interns

# Other Training Facilities & Programs 1. What training providers have you used to train new and/or existing workers? Please check all that apply. New Worker Training Existing

Worker Upgrade # Community college

system

# Technical college system

# 4-year college/university

# In-house training # Outside vendors # Other


2. How would you rate the quality of education and training provided by the state education system as related to your skill needs? Excellent Very Good Good Fair Poor # Community

college

# Technical college # 4 -yr. College/ University

Labor Characteristics 1. How would you rate the quality of the workers at your facility (work attitudes, cooperation, etc.)?

# Excellent # Very Good # Good # Fair # Poor 2. How would you rate your labor productivity?

# Excellent # Very Good # Good # Fair # Poor 3. Approximately what percent of your employees have the following levels of education?

Level Percent

# Four-year degree or higher # Associate degree # Some college or training beyond high school # High school # Less than high school # Vendor certifications

4. How would you rate your employee turnover and absenteeism over the last 3 years? Excellent Very Good Good Fair Poor N/A # Employee

turnover

# Absenteeism Labor-Management Relations Is there an organized union present within your facility?

() Yes () No (If yes, please answer question below) In general, how would you rate your company’s relationship with the union? Excellent _____ Very Good _____ Good ____ Fair _____ Poor _____ Transportation How would you rate the availability of transportation and logistics services used for your business? Excellent Very Good Good Fair Poor N/A • Trucking • Rail • Commercial-airline service • Barge marine transportation • Air cargo • Logistics companies • Availability/warehousing


Utilities How important is the cost of electricity to the operation of your facility?

Extremely Important

Very Important

Important Somewhat Important

Not Important At All

Taxes and Business Climate 1. Please indicate whether you consider the following a locational advantage or disadvantage to operating your facility in Mississippi. Location Advantage Neutral Locational

Disadvantage # Tax policy/fair to

business

# State income tax # State franchise tax # State payroll tax # Liability insurance # Workers’

compensation insurance

# Compliance with environmental rules & regulations

# Permit reviews & approvals

2. Are you currently receiving any of the state business incentives listed below? Please check all that apply. () Payroll tax rebates

() Income tax credits () Sales and use tax exemptions () Property tax exemptions () Inventory tax credits () Business loans () Other _______________________________________

3. Were the state’s business incentives important to the location of this facility? () Yes () No


Telecommunications 1. Is broadband service available at your facility? () Yes () No 2. How critical is broadband (DSL, T-1 or ISDN) Internet service to the supply chain management systems of your customers? Please check all that apply: () They have systems in place that require us to maintain broadband service () They are planning systems that will require us to have broadband service () They have systems in place that do not require broadband service 3. What percent of your company’s activity is via the Internet?

# Procurement _____________% # Sales _____________%

Related and Supporting Industries 1. How would you rate your company’s access to raw materials or parts at your location?

# Excellent ____ # Very Good ____ # Good ____ # Fair _____ # Poor ____

2. Which of the following raw materials, supplies and support services are:

# Critical to the performance of your facility. # Which do you source within Mississippi? # In which does a Mississippi location offer a competitive advantage?

Critical Source -

Within MS MS has a Competitive Advantage

Raw Materials # Resins # Compounders # Pigments # Fillers # Other Organic chemicals # Other Inorganic chemicals # Feedstocks # Synthetic rubbers

Support Services # Equipment repair # Fabricators & Pipe Benders # Welding Shops # Consulting Engineers # Testing labs

Supplies # Scrap # Gaskets and Seals # Valves and Fittings # Recycled material


3. What are the industries or businesses that you believe would be desirable to locate in this area for?

# Supplying your industrial materials ___________________________________________________ _______________________________________________________________________________ # Using your product _______________________________________________________________ _______________________________________________________________________________ # Providing support services _________________________________________________________ _______________________________________________________________________________

DEMAND CONDITIONS Markets 1. What kinds of industries buy your product? Please check all that apply. () Automotive () Paper coaters () Construction () Wire coaters () Compounders () Industrial packaging () Paints and coatings () Food packagers () Bags () Electronics () Molders or Extruders () Other_____________________________________ 2. How would you rate your company’s access to markets for your product?

# Excellent # Very Good # Good # Fair # Poor 3. Where are your principal customers located?

() Almost totally within Mississippi () Mostly in Mississippi, Louisiana, Tennessee, Arkansas and Alabama () Within the entire Southeastern states () Throughout the USA () Throughout the world (more than 10% of my sales are exported)

4. Which one of the following statements best describes your customers in Mississippi? If most of your customers are outside the state, skip to Firm Strategy

() Our Mississippi customers are more demanding in quality and service than customers outside the state. () Our Mississippi customers demand the same quality and service as customers elsewhere () Our MS customers are more flexible than our customers in other states. () Our MS customers are cost conscious and buy strictly on price--quality is a secondary factor

Firm Strategy and Rivalry

1. Please rank order from 1 to 5, with one being the most important, the following factors as they pertain to your facility’s profitability: _______Being near my customers to reduce shipping costs and time. _______Having a reasonably priced labor supply. _______Having a supply of experienced technicians and engineers. _______Near my raw material vendors to reduce material costs. _______ Reliable and reasonably priced electricity.


2. Where are your company’s principal competitors located? () Within 150 miles () Within 150 to 300 mile () Throughout the USA () Throughout the world Research and Development 1. Does your company have an R&D division? () Yes () No 2. How important are innovation and new product development to your company? () Critical to our future () Important but not critical () Not important 3. How much does your company spend on R&D? () Over 8 percent of sales () Between 4 - 8 percent () Under 4 percent 4. What kinds of industrial R&D could the state’s universities perform to help you improve your business? Check all that apply. () Develop new engineering resins and polymers. () Develop new production techniques and processes. () Provide better-trained engineers. () Perform contract research. () Provide prototype manufacturing at a reasonable cost. () Provide technical assistance for solving problems with new customers or materials. 5. Has your company attained any of the following designations? Please check the one that applies to you. () ISO 9000 () ISO 14000 () QS 9000

6. How useful is the Polymer Institute to your Mississippi operations: () Have not worked directly with them. () Not useful () They are useful at helping develop new markets. () They are useful at helping us produce new products () They are a useful source of trained employees. Future Development 1. Does your company have plans to expand within the next 3 years? () Yes () No (If no, skip to Question ----) If yes, how likely is it that expansion will occur at the Mississippi location?

# Extremely Likely

# Very Likely # Likely # Somewhat Unlikely

# Not Likely At All

2. Please indicate if the expansion is for a new product line or due to market expansion? () New product line (Please specify: _____________________________________ () Market expansion


Plastics Survey Results


Survey of Plastics CompaniesResponses and Response Rate: 56 companies representing at least 4268 jobs (22% of companies and33% of sub-cluster jobs)

Age of Plant:Over 20 years: 31%11-20 yrs: 25%6-10 yrs: 19%Under 6 yrs: 25%

Parts of Company located in MississippiHeadquarters 48%R&D 35%Manufacturing 94%Ware/Distribution 58%Sales/Engineering 6%

Ownership/ControlMississippi control 50%Outside MS 50%

ProductsRubber products 17%Compounding 8%Blow molders 15%Injection molders 13%Other molders 19%Extrusion 6%Other 21%

Reason for Mississippi Plant Location (In Rank Order)Business started locally 44%Overall business costs 33%Market access 27%Incentives 19%Labor supply 17%

Employment Breakdown (n=3541 )Production 73%Technical 7%Office/Clerical 8%Management 8%Contract 8%


Most Common Occupations (Rank Ordered by % of companies with this job)Forklift operators 73%Shipping clerks 69%Maintenance Mechanics*+ 69%QC Inspectors 65%Machine setter * 63%Electricians+ 48%

* rated as critical occupations by the majority of respondents that employ this group+ occupations where a third of respondents indicated a shortage

Wages and BenefitsPlantwide average wage: $10.86Benefits cost ($/hr) $ 2.60Benefits cost (%) 28.5%

Labor Recruiting ExperienceNot or Somewhat Difficult or

difficult Extremely DifficultUnskilled 81% 13%Semiskilled 50% 50%Skilled 25% 75%

Most Common Labor Recruitment ToolsEmp Referrals 46%Internal Hires 35%Emp Services 33%

Advertisements 31%Walk-ins 31%Temp-to-Perm 25%

Training ProgramsIn House training 58%Community college 55%Outside vendors 40%Technical college 25%University 10%

Training Quality AssessmentExcellent-Good Fair-Poor

Community College 67% 19%Technical college 33% 15%Universities 56% 17%

Labor CharacteristicsExcellent-Good Fair-Poor

Quality 89% 13%Productivity 77% 8%


Educational Level of WorkersFour-yr college degree 12%Associates degree 8%Some college 14%High school diploma 62%Less than high school 26%Vendor certifications 10%


Turnover 67% 33%Absenteeism 58% 35%Unionized(4%) Union relationship 100%

Transportation CharacteristicsExcellent-Good Fair-Poor N/A

Trucking 94% 6%Rail 40% 15% 25%Commercial Airline 35% 40% 25%Barge 17% 6% 52%Air Cargo 17% 17% 21%Logistics companies 27% 15% 31%Warehousing 27% 23% 21%

Electric CostExtremely Important 46%Very Important 38%Important 13%Not important 4%

Taxes and RegulationsRated as Competitive disadvantage

State income tax 28%

Rated as Competitive AdvantagesTax policy to bus. 40%Environmental policy 27%Permit reviews 23%Franchise tax 17% Worker’s comp 25%

Rated NeutralState payroll tax 89%Liability insurance 21%


Were State incentives important to the location of this facility?Yes 44%No 44%

TelecommunicationsBroadband available now 50%Broadband required 31%Internet procurement 17%Internet sales 12%

Related and Support Industry (The most critical)Resins 73%Equipment repair* 42%Testing labs* 29%Tool and die shops* 25%Mold makers 21%

*High percent source within Mississippi

End MarketsOthers 50%Construction 38%Automotive 35%Packaging 29%Electronics 23%Coatings 7%

Market SizeWithin Mississippi 12%Surrounding states 21%Southeast USA 17%National 42%Global(>10% exports ) 15%

Mississippi customers demand the same quality and price as elsewhere (72%) Competitors tothese companies are located regionally (32% within 300 miles) and throughout the USA (46%)and the world (19%)

Firm Location Strategy (Rank Ordered)1. Reasonable Labor costs2. Market access to customers3. Electricity costs4. Abundance of technicians & engineers5. Near vendors to reduce transport cost


R&DCompany has an R&D unit 52%R&D is critical to their future 48%; important (41%)Companies spend an average of 2% of revenues on R&D

• 40% would like the state to provide technical assistance to solve problems related to specific customers or materials while 30% favor development of new resins and polymers and a like proportion favor contract research and development of new processes while 25% favor rapid prototyping .• Twenty percent of companies are ISO 9000 certified.• Two- thirds of companies have not worked with the Polymer Institute at USM. Those that have worked with the institute like assistance with new product development, assistance developing new markets and training employees

Future Plans• 6 percent have plans to expand within the next 3 years• 44ercent are extremely likely or likely to expand in Mississippi• Only 2 percent are unlikely to expand in Mississippi• Expansions are driven by growing markets (42 and by new product lines and new materials (25


Polymer Survey Results


Survey of Polymer CompaniesWritten Responses

Responses and Response Rate: 20 companies representing 725 jobs (17% of companies and 20% ofsub-cluster jobs)

Age of Plant:Over 20 years: 35%11-20 yrs: 25%6-10 yrs: 15%Under 6 yrs: 25%

Parts of Company located in MississippiHeadquarters 55%R&D 45%Manufacturing 95%Ware/Distribution 45%

Ownership/ControlMississippi control 45%Outside MS 45%

ProductsResin or rubber production 40%Compounding 20%Other or no answer 40%

Reason for Mississippi Plant Location (In Rank Order)Business started locally 50%Incentives 20%Market access 15%Overall business costs 15%Labor supply 15%

Employment Breakdown (n=727 )Production 62%Technical 10%Office/Clerical 10%Management 10%Contract 9%


Most Common Occupations (Rank Ordered by % of companies with this job)Chemical Plant operators* 65%Chemical Engineers* 55%Chemists* 45%Maintenance Mechanics*+ 45%Instrument Mechanics*+ 30%

* rated as critical occupations by the majority of respondents that employ this group+ occupations where a third of respondents indicated a shortage

Wages and BenefitsPlantwide average wage: $14.33Benefits cost ($/hr) $ 3.04Benefits cost (%) 26.4%

Labor Recruiting ExperienceNot or Somewhat Difficult or

difficult Extremely DifficultUnskilled 57% 7%Semiskilled 56% 44%Skilled 29% 71%

Most Common Labor Recruitment ToolsInternal Hires 45%Emp Services 32%Emp Referrals 20%Professional associations 10%Colleges 10%

Training ProgramsIn House training 75%Outside vendors 55%Community college 30%Technical college 20%University 10%

Training Quality AssessmentExcellent-Good Fair-Poor

Community College 65% 35%Technical college 85% 15%Universities 94% 6%


Quality 94% 6%Productivity 94% 6%


Educational Level of WorkersFour-yr college degree 37%Associates degree 14%Some college 32%High school diploma 67%Less than high school 7%


Turnover 80% 15%Absenteeism 78% 15%Unionized (10%) Union relationship 100%

Transportation CharacteristicsExcellent-Good Fair-Poor N/A

Trucking 100%Rail 61% 6% 22%Commercial Airline 50% 35% 15%Barge 39% 6% 50%Air Cargo 50% 35% 15%Logistics companies 33% 22% 45%Warehousing 59% 12% 30%

Electric CostExtremely Important 29%Very Important 43%Important 19%Not important 9%

Taxes and RegulationsRated as Competitive disadvantage

State income tax 26%Franchise tax 16%Liability insurance 21%Worker’s comp 26%

Rated as Competitive AdvantagesEnvironmental policy 42%Permit reviews 44%Tax policy to bus. 32%

Rated NeutralState payroll tax 89%

Were State incentives important to the location of this facility?Yes 33%No 67%


TelecommunicationsBroadband available now 50%Broadband required 50%Internet procurement 18%Internet sales 16%

End MarketsAutomotive 35%Construction 25%Packaging 30%Coatings 15%Electronics 15%Others 15%

Market SizeWithin Mississippi 5%Surrounding states 14%Southeast USA 19%National 50%Global (>10% exports ) 19%

Mississippi customers demand the same quality and price as elsewhere (75%)Competitors to these companies are located throughout the USA (75%) and the world (15%)

Firm Location Strategy (Rank Ordered)1. Near vendors to reduce transport cost2. Reasonable Labor costs3. Market access to customers4. Electricity costs5. Abundance of technicians & engineers

R&DCompany has an R&D unit 75%R&D is critical to their future 50%; important (40%)Companies spend an average of 4% of revenues on R&D

• 55% would like the state to provide technical assistance to solve problems related tospecific customers or materials while 45% value contract research.

• A third would provide better trained engineers.• A third of companies are ISO 9000 certified.• Three fourths of companies have not worked with the Polymer Institute at USM.

Future Plans• 83 percent have plans to expand within the next 3 years• 53 percent are extremely likely or likely to expand in Mississippi• Only 13 percent are unlikely to expand in Mississippi• Expansions are driven by growing markets (50%) and by new product lines and new materials

(30%)


Tables


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Table A-3: Approved Secondary Courses

Mississippi Approved Secondary Vocational Coursesthat Support the Polymer Industry

Course Code Course Category Course Title

070390 Business Technology Computer Programming Technology I

070391 Business Technology Computer Programming Technology II

460302 Trade & Industrial Electrician I

460390 Trade & Industrial Electrician II

470199 Trade & Industrial Electronics I

470200 Trade & Industrial Electronics II

480790 Trade & Industrial Furniture Manufacturing & Upholstering I

480791 Trade & Industrial Furniture Manufacturing & Upholstering II

470390 Trade & Industrial Industrial Maintenance Trades I

470391 Trade & Industrial Industrial Maintenance Trades II

480503 Trade & Industrial Machine Tool Operation / Machine Shop I

480509 Trade & Industrial Machine Tool Operation II / Machine Shop II

480590 Trade & Industrial Metal Trades I

480592 Trade & Industrial Metal Trades II

460501 Trade & Industrial Plumber / Pipefitter I

460590 Trade & Industrial Plumber / Pipefitter II

480520 Trade & Industrial Polymer Plastics Technology I

480519 Trade & Industrial Polymer Plastics Technology II

480508 Trade & Industrial Welding I

480517 Trade & Industrial Welding II


Table A-4: Target Industries

Comparison of Target Industry Employment Needs to Current EducationalPrograms Supporting Those Needs

Target Industry Employment Needs Supporting Programs Offered Enrollment

Plastics Plumbing Plastics injection Plastics Technology – Jones 8Fixtures molding skills County Junior College

Custom Compounding Supply of Chemical Chemical Engineering – The 600of Plastic Resins Engineers University of Mississippi,

Mississippi State University;Polymer Science – The Universityof Southern Mississippi

Plastic Pipe Maintenance mechanics Industrial Maintenance programs – 58and skilled craft / various community colleges;extrusion workers Plastics Technology – Jones

County Junior College

Laminated Plastic Maintenance mechanics Industrial Maintenance programs – 58Plate, Sheet & Profile and skilled plastics / various community colleges;Shapes craft workers Plastics Technology – Jones

County Junior College

Rubber and Plastic Rubber and plastic Plastics Technology – Jones 36Hose and Belting processing skills County Junior College; Automated

Manufacturing Technology –various community colleges

Gaskets, Packaging, Rubber and plastic Plastics Technology – Jones 36and Sealing Devices processing skills County Junior College; Automated

Manufacturing Technology –various community colleges

Mechanical Rubber Rubber production and Automated Manufacturing 28Goods office technical skills Technology – various community

colleges

Coatings & Adhesives Coatings processing Tool & Die – various community 53skills colleges

Total: 877


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Educational Program Profiles


Community College Programs

Academic, Vocational, and Technical Programs Within the CommunityCollege System that Support the Polymer Industry

Although Jones County Junior College (JCJC) is the only community college within the state thatoffers a degree program that is specifically geared towards the polymer and plastics industry, there areother community colleges in Mississippi that offer academic, vocational, and technical degree programsthat help to support the state’s polymer industry by generating a more knowledgeable and skillfulworkforce.

Academic Programs:There are certain fundamental courses taught by the majority of community colleges within

Mississippi that provide students with a knowledge base that is potentially applicable to the polymerindustry. Chemistry and mathematics are two prime examples of fundamental courses of study prevalentwithin the state’s community college curricula that provide students with a foundation from which morespecific polymer and plastics-related concepts can be built.

Another academic area that, although broad in nature, is potentially relevant to the polymerindustry is engineering. Approximately half of the community colleges within the state offer some type ofengineering or pre-engineering academic degree program. These community colleges include, but are notlimited to: Copiah-Lincoln, East Central, East Mississippi, Hinds, Itawamba, Mississippi Gulf Coast,Northeast Mississippi, and Pearl River.

Vocational / Technical Programs:While academic programs are important in generating a knowledgeable workforce, vocational and

technical programs within the state’s community college system are of particular importance and rel-evance to this study because they help to develop a skill and trade-specific workforce. The state’s short-age of a skilled workforce that was noted in Task 1 as a disadvantage for Mississippi’s polymer industry,reinforces the concept that vocational and technical programs are critical to enhancing our state’s pool ofskilled workers. In addition, one of the primary concerns and workforce needs identified by the industryfocus group participants is the lack of technical skills within the state’s labor pool. Further, the industryfocus group participants identified the increased needs for 2-year degrees and technical aptitude asprimary workforce concerns for the future. Since the state’s community and junior colleges are theprincipal source of technical training opportunities for the workforce, it is important to focus on improv-ing the number, quality, and enrollment of polymer and polymer-related degree programs within the two-year college system.

With the help of Wayne Stonecypher, Associate Executive Director of the State Board for Com-munity & Junior Colleges, as well as Betty Wong and Lynn Mangrum at the Office of Vocational andTechnical Education, a profile of existing vocational and technical programs that correlate with the state’spolymer industry was constructed. Due to the nature and content of these programs, it can be assumedthat students exiting these programs with a skill set that is complementary and potentially applicable to thepolymer industry.


Profiles of Mississippi’s Polymer and Polymer-RelatedVocational-Technical Programs

Program CIP Location of Program Fall 2001 Number ofNumber Enrollment Program

Completersin 20001

Pulp, Paper and 03.0509 Co-Lin, Wesson 9 4ChemicalTechnology

Electrical / 15.0303 Northeast MS, Booneville 80 7Electronics:Applied IndustrialTechnology

Electrical 15.0303 Southwest MS, Summit 29 3Technology

Electronics 15.0303 Northwest MS, Senatobia 20 9

Electronics Tech 15.0303 Holmes, Grenada 15 12

Electronics 15.0303 East MS, Golden Triangle 28 9

Electronics 15.0303 East Central, Decatur 44 29

Electronics 15.0303 MS Gulf Coast, Jefferson 35 7Davis Campus

Electronics 15.0303 MS Delta, Moorhead 26 5

Electronics 15.0303 MS Gulf Coast, Jackson 44 8County – Gautier

Electronics 15.0303 Co-Lin, Wesson 29 13

Electronics 15.0303 Pearl River, Poplarville 60 15

Electronics 15.0303 Hinds, Utica Campus 17 2

Electronics 15.0303 Hinds, Raymond Campus 58 12

Electronics 15.0303 Jones County 101 11



Completersin 20001

Electronics 15.0303 Itawamba, Tupelo Campus 82 14

Electronics 15.0303 Hinds, Rankin Branch 25 4EngineeringTechnology

Electronics 15.0303 Meridian 20 7

Electronics 15.0303 Pearl River, Forrest County 37 10Technology

Electronics/ 15.0404 Co-Lin, Natchez 13 10InstrumentationTechnology

Instrumentation 15.0404 Pearl River, Poplarville 23 8Technology

Environmental 15.0507 MS Gulf Coast, Jackson 26 2Technology County - Gautier

Automated 15.0603 Northeast MS, Booneville 9 2ManufacturingTechnology

Automated 15.0603 Pearl River, Poplarville 7 7ManufacturingTechnology

Industrial 15.0603 Co-Lin, Wesson 12 5ManufacturingSystemsTechnology

Plastics 15.0607 Jones County 8 0Technology

Furniture 15.0690 Itawamba, Tupelo Campus 10 2Manufacturing



Completersin 20001

Construction 15.1001 Northeast MS, Booneville 14 1EngineeringTechnology

Engineering 15.9999 Holmes, Goodman Campus 71 6

Industrial 46.0302 MS Delta, Moorhead 40 31Electricity

Industrial 46.0302 MS Gulf Coast, West Harrison 19 10Electricity /Electronics

Industrial 46.0302 MS Gulf Coast, Jefferson 11 8Electricity Davis Campus

Industrial 46.0302 East MS, Golden Triangle 57 10Electricity

Industrial 46.0302 MS Gulf Coast, Jackson 41 21Electricity County – Gautier

Plumbing / 46.0501 MS Gulf Coast, Jackson 15 9Pipefitting County – Gautier

Plumbing 46.0501 Hinds, Rankin Branch 15

Industrial 47.0390 Coahoma, Clarksdale 18 1Maintenance

Industrial 47.0390 MS Gulf Coast, Jefferson 13 2Maintenance Davis Campus

Industrial 47.0390 Meridian 15Maintenance

Industrial 47.0399 Jones County 4Maintenance

Electrical 46.0302 Pearl River, Poplarville 1 1Technology



Completersin 20001

Electrical 46.0302 Hinds, Vicksburg 66 22Technology

Electrical 46.0302 East Central, Decatur 39 6Technology

Electrician 46.0302 Northeast MS, Booneville 23 11

General 46.0302 Hinds, Raymond Campus 23 0Electricity& Wiring

Industrial 46.0302 Itawamba, Tupelo Campus 121 7Electricity

Precision 48.0501 East Central, Decatur 10 2MachineTechnology

Machine Tool Op. 48.0503 MS Gulf Coast, West Harrison 10 14/ Machine Shop

Machine Tool 48.0503 Holmes, Grenada 19 0Operations

Machine Shop 48.0503 Meridian 21 2

Machine Shop 48.0503 Hinds, Raymond Campus 32 8

Machine Shop 48.0503 Southwest MS, Summit 5 6Technology

Machine Shop 48.0503 East MS, Golden Triangle 25 6

Machine Shop 48.0503 Holmes, Ridgeland Campus 0 0Assistant

Machine Tool Op. 48.0503 Jones County 21 2/ Machine Shop

Machine Shop 48.0503 MS Delta, Moorhead 18 14



Completersin 20001

Machine Shop 48.0503 Pearl River, Poplarville 10 4

Machine Shop 48.0503 Co-Lin, Wesson 11 6Tech / MachineTool Operations

Machine Tool Op / 48.0503 Northeast MS, Booneville 16 7Machine Shop

Machine Shop 48.0503 MS Gulf Coast, Jackson 19 3County – Gautier

Metal Sheet 48.0506 MS Delta – Moorhead 21 5

Tool & Die 48.0507 Itawamba, Tupelo 17 4

Tool & Die 48.0507 Northeast MS, Booneville 12 1

Tool & Die 48.0507 Northwest, Senatobia 24 5

Totals: 1,764 452

Of the 16 CIP program categories that are identified in Table 1, only one category is poly-mer-specific – Plastics Technology (15.0607). As previously noted, Jones County Junior Col-lege is the only two-year college that currently offers this degree program that is specific to thepolymer industry. With only eight students enrolled in the Plastics Technology program in Fall2001 and an estimated 17,4802 total students enrolled within the state’s vocational and technicalprograms, less than one tenth of one percent of Vo-Tech students were being taught requisiteskills to prepare them for work in the polymer industry.

Industrial Maintenance and Tool & Die programs have a fairly strong correlation to thepolymer industry. There are only four program offerings in Industrial Maintenance offeredwithin the state and only three Tool & Die programs. In Fall 2001, these programs had studentenrollments of 15 and 53, respectively. Therefore, Industrial Maintenance and Tool & Dieprograms comprised less than one percent of the total estimated enrollment in the state’s voca-tional and technical programs.

The total number of students enrolled in all 64 of the vocational and technical programslisted above during Fall 2001 represents approximately 10 percent of the total estimatedheadcount for the state’s vocational and technical programs. Therefore, approximately 10percent of students are being taught polymer-specific or polymer-related skills through vo-tech


programs within the community college system.

From these comparisons, certain conclusions can be drawn. First, there is a deficiency in thenumber and enrollment of polymer-specific degree programs within the two-year college system.With only one out of every 2,185 students being taught polymer-specific curricula, there is adefinite training shortage.

Second, there is a deficiency in the number and enrollment of two-year degree programs (such asIndustrial Maintenance and Tool & Die) that have a strong correlation to the polymer industry.Only one in every 257 students is enrolled in a vocational or technical program that falls underthis category.

Third, the overall number of enrollees in polymer-specific and polymer-related vo-tech programsis distinctively higher than the previous percentages. Approximately one in ten students arebeing taught skill sets that are applicable to the polymer industry. However, enrollment figuresfor these programs are not high enough to supply the state’s growing polymer industry with askilled workforce.

(Footnotes)1 Certain program completer data was not available for 2000

2 This is a Fall 2000 preliminary figure for both full-time and part-time students. Therefore, it serves as only anestimated headcount of total vocational and technical program enrollees for Fall 2001.



Polymer Science

Both the baccalaureate and graduate polymer science degree programs at The University of SouthernMississippi are designed to educate students in the theory and practical applications of polymer science. Inaddition, students are taught how to approach and execute a research program to further understanding. Theprogram’s core concentrations are polymer chemistry, polymer physics, and engineering concepts. Studentsalso are taught material from related scientific disciplines, including chemistry, physics, mathematics,engineering, biochemistry, and biology. Each degree program prepares students for a career in academia,commerce, or industry.

The Baccalaureate Program:

The 130 credit hour undergraduate curriculum is designed as follows:

Freshman YearIntroduction to Polymers (PSC 191) 2 General Chemistry II (CHE 107) 3General Chemistry I (CHE 106) 3 General Chemistry II Lab (CHE 107L) 1General Chemistry I Lab (CHE 106L) 1 Calculus II (MAT 168) or 179 (5) 3Calculus I (MAT 167) or 178 (5) 3 Physics w/ Calculus I (PHY 201L) 4Writing I (ENG 101) 3 Physics w/ Calculus I Lab (PHY 201L) 1Western Civilization I (HIS 101) 3 Writing II (ENG 102) 3Food & Nutrition (NSF 167) 1 Western Civilization II (HIS 102) 3Physical Fitness (HPR 105) 1Total Credits 17 18

Sophomore YearOrganic Chemistry I (CHE 255) 3 Physical Aspects of Polymers(PSC 291) 2Organic Chemistry I Lab (CHE 255 L) 1 Organic Chemistry II (CHE 256) 3Calculus III (MAT 169) 4 Organic Chemistry II Lab (CHE 256L) 2Physics w/ Calculus II (PHY 202) 4 Problem Solving (PSC 285) 3Physics w/ Calculus II Lab (PHY 202L) 1 Programming (CSS 240 or 330) 3English Literature (ENG 203) 3 Humanities. & Fine Arts Elective 3Safety Principles (PSC 410) 1Total Credits 17 16

Junior YearOrganic Polymer Chemistry I (PSC 301) 3 Organic Polymer Chemistry II (PSC 302) 3Polymer Techniques (PSC 341L) 2 Polymer Techniques II (PSC 342L) 2Polymer Rheology (PSC 360) 3 Polymer Processing (PSC 361) 3Polymer Characterization (PSC 450) 3 Polymer Processing Lab (PSC 361L) 2Polymer Characterization Lab (PSC 450L) 1 Social & Behavioral Science Elective 3Social & Behavioral Science Elective 3 Engineering Economics (ENT 390) 3Total Credits 15 16

University Degree Programs


Senior YearPolymer Physical Chemistry I (PSC 401) 3 Polymer Physical Chemistry II (PSC 402) 3Surface Coatings (PSC 470) 4 Polymer Kinetics (PSC 480) 3Polymer Surface Coatings Lab (PSC 470L) 1 Polymer Research II (PSC 491) 1Polymer Research (PSC 490) 1 Polymer Research II Lab (PSC 491L) 3Polymer Research Lab (PSC 490L) 3 *Technical Elective 3*Technical Elective 3 Speech Communications Elective 3Total Credits 15 16

TOTAL HOURS: 130

Graduate Programs:

Admission Requirements

Admission to one of USM’s graduate polymer programs is based on an evaluation of astudent’s academic achievement, previous participation in research, and evidence of an aptitude forpolymer science. Academic achievement is determined from academic transcripts, letters ofrecommendation, and scores on the advanced and general Graduate Record Examination (GRE).

A bachelor’s or master’s degree in science, engineering, or mathematics is required. Financialaid is frequently available for both masters and doctoral students in the form of tuition waivers andstipends received from fellowships and graduate assistantships. For doctoral candidates, successfulcompletion of a qualifying examination also is required.

Graduation Requirements

Master’s: Candidates for a master’s degree in polymer science must complete 54 hoursof approved coursework, including 21 hours of polymer science core courses, with a grade pointaverage of 3.0 or better. Eighteen credit hours must be at the 600 level or higher. In addition,master’s candidates must have satisfactory development of an original research project and athesis. A satisfactory completion of a final comprehensive examination also is required forgraduation.

Required coursework for the Master of Science Program includes:

Organic Polymer Chemistry I (PSC 701) 3Organic Polymer Chemistry II (PSC 702) 3Polymer Physical Chemistry I (PSC 710) 3Polymer Physical Chemistry II (PSC 711) 3Polymer Techniques I (PSC 720) 2Polymer Techniques II (PSC 721) 2Polymer Rheology (PSC 730) 2Organic Polymer Chemistry III (PSC 703) 3, orPolymer Physical Chemistry III (PSC 712) 3Total 21 hours

Research in Polymer Science (PSC 691) 1-16Thesis (PSC 698) 1-6

10-45 hours

Polymer Science Seminar (PSC 789) 2-6 hours


Doctorate: Doctoral candidates must complete at least 78 semester hours ofcoursework, not including research tools and dissertation. Fifty-four credit hours are requiredbeyond a master’s degree in Polymer Science or a related area. Candidates must have aminimum grade point average of 3.0 (on a 4.0 scale) in order to graduate. They also must pass afinal comprehensive examination and complete a research dissertation. The written dissertationprospectus must be approved by the student’s committee within nine months of completing thewritten comprehensive examination. Within 18 months of completing the comprehensiveexamination, the student must submit an independently conceived and developed writtenproposal dealing with an original proposition unrelated to his or her dissertation research. Thisproposal is then presented orally and defended before the faculty. Oral evaluation of thestudent’s general knowledge of polymer science is carried out simultaneously with his or herdefense of the proposal.

Doctoral students must take all core courses as well as two 800-level courses that areoffered. They also must register for one hour of polymer science seminar each semester that theyare in residence.

Facilities:

The School of Polymers and High Performance Materials is located in the three-story ShelbyF. Thames Polymer Science Research Center, a modern 85,000 square-foot teaching and researchcomplex located on The University of Southern Mississippi’s main Hattiesburg campus. The $19.7million center was completed in 1991 and was equipped with funds appropriated by Congressthrough the U.S. Department of Agriculture. The Research Center is equipped with state-of-the-artinstrumentation and the latest computer technology software.

Types of state-of-the-art instrumentation include:

• Fourier Transform Infra Red Spectrometers• Nuclear Magnetic Resonance• Microscopes• Thermal and Mechanical Analysis• Laser Spectroscopy• Laser / UV photocure• Light Scattering• Size Exclusion Chromatography• Extruders• X ray Diffraction• Coating Equipment• Fabrication shop• Electronics shop

Faculty:

There are approximately 13 full-time faculty members within the School of Polymers andHigh Performance Materials at The University of Southern Mississippi. The faculty is drawn froma variety of academic disciplines including chemistry, physics, and chemical engineering. All ofthe faculty members have earned the highest degree in their respective field. In addition to educatingstudents, the faculty is actively involved in world-class industrial research. Faculty research has


been conducted in the areas of synthetic and biosynthetic polymer chemistry, physical polymerscience, computational modeling, flow and deformation studies, environmental stewardship, andapplications.

In 1993, an American Chemical Society (ACS) survey of federal funding for Research &Development reported in Chemical and Engineering News that USM’s polymer program is thefastest growing program in the nation. Due to this rapid growth, more than half of the PolymerDepartment’s current faculty members have joined within the last decade. The influx of new facultymembers has expanded the department’s overall expertise and has allowed for the emergence ofimportant research synergies. In particular, the areas of hydrophilic polymers, colloid and surfacescience, ion-containing polymers, composites, polymer compatibility, and photophysics are a fewof the recent research concentrations.

Members of the faculty utilize a variety of learning approaches to educate students aboutpolymer science, including formal courses, seminars, colloquia, independent reading, and dailyinteractions. Distinguished speakers from both academic and research institutions and from industryare presented during weekly symposiums. Both the Polymer Science Symposia and the weeklydepartmental seminars are mandatory for all polymer students. These events expose students toresearch developments and provide an excellent opportunity for networking.

Mississippi State University (MSU)

Chemical Engineering

The Dave S. Swalm School of Chemical Engineering at Mississippi State University offers bothundergraduate and graduate degree programs in chemical engineering. The School of Chemical Engineer-ing at MSU defines chemical engineering as “the application of the principles of the physical sciences,together with the principles of economics and human relations, to fields that pertain directly to processesand process equipment in which material is treated to effect a change in state, energy content, or composi-tion.” According to MSU, chemical engineering graduates typically enter industries manufacturingplastics, pharmaceuticals, chemicals, glass, petroleum products, metals, paper, foods, or fibers. Chemicalengineering graduates often enter the field as plant process or production engineers, or they specialize inthe use of computers to control the manufacturing processes.

The educational objectives of the Chemical Engineering programs, as outlined on the departmentwebsite, are as follows:

1. To provide a foundation leading to the students’ proficiency in fundamental math, basicscience, and engineering science.

2. Broaden the student’s perspective of the world around him/her by providing a broadeducation in the arts, humanities, and social/behavior sciences.

3. Provide a foundation in chemical engineering concepts and develop the student’s profi-ciency in analysis, simulation, modeling, and design.

4. Develop student’s proficiency in oral, written, and computer communications; entrepre-neurship; and teamwork.

5. Develop student’s ability to apply the engineering approach to the solution of problemstogether with a consideration of safety, loss prevention, environmental impact, andeconomics during process and plant design.

6. Promote engineering ethics and professionalism.


The Baccalaureate Program:

First Semester Second SemesterCH 1211 Inv. in Chemistry 1 CH 1221 Inv. in Chemistry 1CH 1213 Fund. of Chemistry 3 CH 1223 Fund. of Chemistry 3CHE 1011 CHE Freshman Seminar 1 CHE 1233 Design Concepts for CHE 3EN 1103 English Comp. I 3 EN 1113 English Comp. II 3MA 1713 Calculus I 3 MA 1723 Calculus II 3CO 1003 Fund. of Public Speaking 3 PH 2213 Physics I 3 Humanities Elective 3 Social Science Elective 3 Total Credit Hours 17 Total Credit Hours 19

First Semester Second SemesterMA 2733 Calculus III 3 MA 2743 Calculus IV 3PH 2223 Physics II 3 PH 2233 Physics III 3CHE 2114 Mass/Energy Balances 4 CHE 3113 CHE Thermo I 3CHE 3203 Fluid Flow Operations 3 CHE 3213 Heat Transfer Operations 3 Fine Arts Elective* 3 MA 2913 Differential Equations 3 Social Science Elective 3 Total Credit Hours 16 Total Credit Hours 18

First Semester Second SemesterCH 4511 Organic Chem. Lab I 1 CH 4521 Organic Chem. Lab II 1CH 4513 Organic Chemistry I 3 CH 4523 Organic Chemistry II 3CHE 3123 CHE Thermo II 3 CHE 3223 Mass Transfer Operations 3CHE 3823 Analysis and Simulation 3 CHE 4113 Chem. Reactor Design 3EM 2413 Engineering Mechanics I 3 CHE 3222 CHE Lab I 2GE 3513 Technical Writing 3 CHE 3413 Engineering Materials 3 Humanities Elective 3 HU/FA/SS Elective 3 Total Credit Hours 19 Total Credit Hours 18

First Semester Second SemesterCH 4413 Physical Chem. I 3 CHE 4234 Plant Design 4CH 4411 Physical Chem. Lab 1 CHE 4223 Process Instr. & Controls 3CHE 4133 Process Design 3 CHE xxxx CHE Elective 3CHE 3232 CHE Lab II 2 CH xxxx Chemistry Elective 3EE 3183 EE Systems 3 Technical Elective 3 Technical Elective 3 Total Credit Hours 15 Total Credit Hours 16

Graduate Programs:


Admission into the Dave C. Swalm School of Chemical Engineering’s Graduate Program is basedon the following minimum requirements: a GRE score of 1200; a GPA of 3.0 for the last 64 hours of B.S.degree; the equivalent computer experience required in the MSU undergraduate program; the equivalentundergraduate courses in chemistry, mathematics, physics, and chemical engineering required in MSU’sprogram; and a TOEFL score of at least 550 for International students.


For students wishing to pursue a graduate degree in chemical engineering that have not attainedan undergraduate degree in the same field, additional course work in chemistry, mathematics, physics,thermodynamics/kinetics, and unit operations must be completed in addition to the required graduatecurriculum. Any graduate student that is required to take some or all of these additional courses mustmaintain at least a 3.0 GPA in all required undergraduate prerequisites.

The School currently has an enrollment of 33 undergraduate and 25 graduate students. Since itsestablishment in 1935, the School of Chemical Engineering at MSU has graduated over 1,500 students.


Master’s: Candidates for a master’s degree in chemical engineering must complete 24hours of course work in addition to 6 hours of thesis/research credits. Master’s students mayselect from an option of studying a traditional chemical engineering program, or concentrating inindustrial hazardous waste management. A thesis is required of all candidates, regardless of thechosen course of study.

Required coursework for the Master of Science in Chemical Engineering Programinclude:

Chemistry Courses (12 hours)Advanced Chemical Engineering Thermodynamics (CHE 8113)Chemical Kinetics and Dynamics (CHE 8123)Advanced Process Computations (CHE 8223)Advanced Transport Phenomena (CHE 8253)Mathematics / Statistics Courses (6 hours)Statistical Methods (ST 8114)Numerical Analysis I (MA 6313)Numerical Analysis II (MA 6323)Applied Math I (MA 8203)Technical Electives (6 hours)Graduate Seminar (1 hour)

Doctorate: Doctoral candidates in chemical engineering must complete the same require-ments as the M.S. students, plus an additional 24 hours of course work required beyond themaster’s degree. Therefore, a minimum of three academic years beyond the bachelor’s degree arenecessary to meet course requirements. A comprehensive examination must be passed for admis-sion to candidacy for the doctorate degree. A dissertation is required of all candidates for thedoctorate. The Graduate Committee assigned to the graduate student must approve the disserta-tion topic, the outline, and the final product. Once the Committee has approved these items, thecandidate must conduct a successful oral defense of his or her dissertation before a graduatefaculty committee.

Facilities:MSU houses one of only 26 National Science Foundation Engineering Research Centers

in the nation - the MSU/NSF Engineering Research Center (ERC) for Computational FieldSimulation. The ERC provides numerous opportunities for research in an interdisciplinary envi-ronment. Another major research unit at MSU is the Diagnostic and Instrumentation AnalysisLaboratory.


Each academic department with the School of Engineering at MSU has its own researchfacilities that allow students to get hands-on experience with modern-day engineering equipment.Some of these facilities include:

$ High Voltage Laboratory$ Industrial Assessment Center$ Microsystems Prototyping Laboratory$ Emerging Materials Research Laboratory$ Institute for Signal and Information Processing$ Water Resources Research Institute$ Center for Sustainable Design$ Environmental Technology Research and Applications Laboratory$ Transportation Research Center$ Ergonomics/Human Factors Laboratory$ Reliability and Quality Engineering Laboratory$ Simulation and Advanced Computation Laboratory$ Global Center for Desiccant Technology$ Center for Integrated Manufacturing

The Dave C. Swalm School of Chemical Engineering recently moved into a $18.6million, 95,000 square-foot building located on the historic Drill Field. This five-story, state-of-the-art facility houses classrooms, an auditorium, a student lounge, and chemical engineeringoffices. This facility also houses a number of highly specialized research laboratories and twowidely recognized programs in the environmental field—the Mississippi Technical AssistanceProgram and the Environmental Technology Research and Applications Laboratory.

Faculty:Through its activities, MSU has been able to achieve significant external research fund-

ing. This has allowed Mississippi State University Engineering to attract highly qualified andmotivated faculty. According to MSU, the Swalm School of Chemical Engineering has 11 full-time faculty who are highly qualified, with expertise in a number of areas in the chemical engi-neering field, including ozone kinetics, membrane separations, bioremediation and hazardouswaste treatment, pollution prevention, catalysis, surface analysis, natural gas hydration andstorage, and thermodynamics.

The University of MississippiChemical Engineering

Like MSU, the Department of Chemical Engineering at The University of Mississippi (Ole Miss)also offers both undergraduate (B.S.) and graduate degree programs (M.S., Ph.D.) in chemical engineer-ing. Since its inception in 1930, the Chemical Engineering program at Ole Miss has produced more than500 B.S. chemical engineers, as well as over 150 M.S. graduates and 14 Ph.D.s.

The Baccalaureate Program:According to the Department’s website, the objectives of the undergraduate Chemical Engineer-

ing degree program at Ole Miss ensure that graduates are:

1. Globally competitive in the professional world2. Prepared for success in their chosen career or in continued education3. Equipped with flexible problem solving skills to address complex issues in society


The Department of Chemical Engineering has also outlined its anticipated program outcomes.Graduates of the Chemical Engineering program will be able to:

1. apply basic principles of math, science and engineering, and particularly of advancedchemistry, to identify, analyze, formulate and solve a wide variety of engineering prob-lems;

2. apply the core chemical engineering content (material and energy balances, thermody-namics, transport phenomena, separations, and chemical reaction engineering) to analysis,problem solving, and design;

3. analyze and design safe and economic process systems using skills and tools appropriateat any phase, from synthesis through optimization and control to operability;

4. design and conduct experiments, and analyze and interpret technical data using modernexperimental and computational techniques and tools;

5. communicate technical information through effective presentations, memoranda andreports;

6. contribute to the success of multi-disciplinary teams characteristic of today’s workplace;7. understand the professional and ethical responsibility of the engineer, the safety and

environmental aspects of engineering decisions, and the impact of engineering solutionsin the context of societal needs and contemporary issues;

8. continue their education and pursue new concepts through self-directed study.

The following typical 133-hour undergraduate curriculum is designed to help meets these objectives anddesired program outcomes:

Fall 1 Spring 1US 101 University Studies 1 ENGL 102 (ENGL 321) Composition 3ENGL 101 (ENGL 102) Composition 3 MATH 262 Calculus II 3MATH 261 Calculus I 3 CHEM 106/116 General Chemistry II 4CHEM 105/115 General Chemistry 4 CH E 104 Introduction To ChE II 1CH E 103 Introduction to ChE 1 SHFA Elective 3SHFA Elective 3 SHFA Elective 3Semester Credits 15 Semester Credits 17

Fall 2 Spring 2MATH 263 Calculus III 3 MATH 264 Calculus IV 3CHEM 221/225 Organic Chemistry 4 MATH 353 Differential Equations 3PHYS 211/221 Physics 4 CHEM 222 Organic Chemistry II 3CH E 307 Process Principles 2 PHYS 212/222 Physics II 4CSCI 251 Programming 3 CH E 308 Process Principles II 2 ENGR 321 Thermodynamics 3Semester Credits 16 Semester Credits 18

Fall 3 Spring 3CHEM 331/337 Physical Chemistry 4 CHEM 332 Physical Chemistry II 3ENGR 322 Transport Phenomena 3 CH E 317 Fluid Dynamics/Heat Transfer 4ENGR 310 Analysis 4 CH E 423 Reactor Design 3CH E 421 Multicomponent Thermo 3 CH E 245 Engineering Economics 2SHFA Elective 3 ENGR 360 Circuit Theory 4Semester Credits 17 Semester Credits 16


Fall 4 Spring 4CH E 417 Separation Processes 4 CH E 506 Lab II 2CH E 411 Seminar 1 CH E 510 Design II 3CH E 505 Lab 2 CH E 511 Process Control 3CH E 509 Design 3 ENGR 309 Mechanics 3ENGR 361 Circuits Lab 1 Chemistry Elective 3Engineering Science Elective 3 SHFA Elective 3SHFA Elective 3 Semester Credits 17 Semester Credits 17SHFA Electives = Social Studies, Humanities, Fine Arts ElectivesChemistry Electives include CH E 520, CH E 541/542, CHEM 301, CHEM 334, CHEM 471/473, BISC333, ENGR 313, PHYS 413

Graduate Programs:

The construction of both the Master of Science and Doctor of Philosophy degrees in EngineeringScience at Ole Miss allows for these graduate programs to be tailored to the student’s preferred course ofstudy. Currently, polymer materials is an area of opportunity for graduate research at Ole Miss, as well asother research areas such as surfactant science, combustion, environmental remediation, and transportphenomena.

Materials Science and Engineering Graduate Program Emphasis

Ole Miss offers a graduate program emphasis in materials science and engineering. This empha-sis area focuses on the fundamental structure and property relationships of materials. One of the mainindustries that material science engineers solve problems for is the polymer industry. Therefore, theMaterials Science and Engineering graduate program emphasis at Ole Miss is generating knowledgeableworkers that often take up professions in the polymer industry.


For students wishing to be admitting to a graduate program, they must possess a B average onundergraduate work, must achieve an acceptable score on the GRE, and must present at least one letter ofrecommendation.

Typically, students admitted for graduate study in chemical engineering already possess anundergraduate degree in the same field or a closely related discipline. For students that have deficienciesin certain areas of prerequisite study, they are typically required to complete undergraduate courses thatfill those gaps before being awarded full admission into a graduate program.


Master’s: The 30-hour M.S. degree in Chemical Engineering at Ole Miss requires 24 coursecredits and a minimum of 6 thesis credits. The course credits typically consist of 12 hours of corecoursework in advanced phenomena, thermodynamics, and reactor design, with an additional three creditsattained from seminars. The remaining courses are selected with the advisement of the student’s thesisadvisor to ensure an appropriate fit between course content and thesis work. M.S. students are required topresent an oral thesis defense when both course work and the written thesis are completed.

The Department of Chemical Engineering at Ole Miss states that its M.S. program graduates areexpected to:

• be able to analyze, plan, and execute a fairly complex project with a minimum amount ofsupervision


• be able to communicate effectively both orally and in writing• have a firm understanding of chemical engineering science.

Doctorate: Exact course requirements beyond the master’s degree are determined by thestudent’s advisory committee to best match the curriculum with the student’s thesis work and professionaldevelopment considerations. Students must pass a preliminary examination covering transport phenom-ena, thermodynamics, and reactor design to demonstrate mastery of the undergraduate chemical engineer-ing curriculum. There is also a final oral examination, mostly comprised of a dissertation defense.

The Department of Chemical Engineering at Ole Miss states that its Ph.D. graduates must:• have a firm understanding of the basics of chemical engineering science• be able to make a significant, new contribution to the field of chemical engineering• be able to apply independently the principles of chemical engineering to a new problem

and make reasonable progress towards its solution.

Facilities:

The Department of Chemical Engineering is housed in Anderson Hall, a 30,000 square footfacility containing classrooms, offices, and laboratory space. The laboratories have a wide variety ofinstructional and research equipment available for student use. Students also have access to the Chemistrycomputer lab which contain state-of-the-art computers. A variety of software is available, including wordprocessing, spread sheets, several mathematics packages, learning modules for several courses includingmaterial and energy balances and reactor design, and programs for simulating numerous unit operations.

Faculty:

All Chemical Engineering faculty members at Ole Miss hold Ph.D. degrees from well-known andrespected universities. The academic and industrial experiences of the faculty members are varied,allowing for a broad range of expertise and synergistic research opportunities. The student to faculty ratiois approximately 6:1. The faculty is responsible for teaching all lecture courses, as opposed to havingcourses taught by graduate assistants. By engaging in research opportunities, students within the Chemi-cal Engineering programs can develop one-on-one relationships with faculty members while developingtheir research skills.


Occupational Profiles


Job Title Job Median Typical JobDescription Earnings Educational Outlook

Requirements

Chemical Apply the principles $65,960 / Bachelor’s Degree in Chemical Employment is expected toEngineers of chemistry and year Engineering is the typical grow more slowly for

engineering to solve minimum requirement. chemical engineers due toproblems involving Master’s and Ph.D. degree are increased competition forthe production or use common among chemical jobs.of chemicals. engineers.

Chemist / Search for and use $50,080 / A bachelor’s degree in Employment is expected toMaterials new knowledge about year chemistry or a related discipline grow about as fast as theScientist chemicals. is usually the minimum average for all occupations.

educational requirement for (Some chemical industryentry-level jobs. Many research segments are expected toand development jobs require a have high growth and somePh.D. are expected to downsize.)

Chemical / Use the principles and $17.05 / 2 years of specialized training Employment is expected toScience theories of science and hour or an associate degree in increase as fast as the averageTechnicians mathematics to solve applied science or science- for all occupations because of

problems in research related technology is typically continued growth and& development and to required. Some require a industry demand.help invent and bachelor’s degree in chemistry,improve products and or have taken several scienceprocesses. and math courses at 4-year

colleges.

Industrial Maintain, adjust, $14.89 / A high school diploma and Despite slower-than-averageMachinery install and solve hour vocational training are desired. employment growth resultingInstallation, problems with Most learn their trade through a from technologicalRepair, and production machines. 4-year apprenticeship programs advancements in machinery,Maintenance combining classroom applicants with broad skills in

instruction with on-the-job machine repair should havetraining. favorable job prospects.

CNC Use computer $13.17 / Training in apprenticeship Job growth is expectedProgram- numerically controlled hour programs, informally on the because of the increasing usemers and machines to cut and job, and in secondary, of CNC machine tools.Operators shape precision vocational, or postsecondary However, increases in CNC

products. schools is desired. Due to a technology and software willshortage of qualified applicants, negatively impactmany employers teach employment.introductory courses.

Machinists Use machine tools to $14.78 / Training in apprenticeship Employment is expected toproduce precision hour programs, informally on the grow more slowly thanparts. job, and in high schools, average for all occupations

vocational schools, or because of rising productivitycommunity colleges is among machinists due to newcommon. technologies.

Tool & Produce tools, dies, $19.76 / Most train for 4 or 5 years in Skilled workers should haveDie Makers and special guiding hour apprenticeships or excellent opportunities;

and holding devices postsecondary programs. however little or no change isthat enable machine to projected becausemanufacture a variety advancements in automationof products. will limit employment.

Strategic Occupational Profiles for the Polymer Industry


Job Title Job Median Typical JobDescription Earnings Educational Outlook

Requirements

Machine Those who set up Varies A few weeks of on-the-job Trends such as the rate ofSetters, machines for from training is sufficient for most technologicalOperators, operation and those $10.40 / workers to learn basic machine implementation, the demandand who tend the machines hour to operations, but several years are for goods produced, effectsTenders during production. $16.07 / required to become a skilled of trade, and the

hour. operator. A high school reorganization of productioneducation and the ability to processes are expected toread, write, and speak English spur growth among multipleare typical minimum machine tool operators andrequirements. plastics-molding operators,

but will cause a decline inemployment for other relatedmachine occupations.

Inspectors Monitor or audit $12.22 / Vary based on the Employment is expected to& Testers quality standards for hour responsibilities of the inspector decline because of the

manufactured / tester. High School Diploma increased in automatedproducts. is typical minimum inspection and the

requirement. In-house training redistribution of quality-is common. control responsibilities from

inspectors to other productionworkers.

Industrial Drive and control $11.74 / Most jobs require little work Job openings should beTruck machinery to move hour experience or specific training. numerous because theOperators / materials, goods, or A high school diploma may be occupation is very large andMaterial equipment to different required. the economy is stable.Moving onsite locations.Occupations

Industrial Coordinate the $61,660 / A college degree is typically Slower-than-average growthProduction resources and year required. An increasing in employment is expectedManagers activities required in number of employers are due to increasing productivity

production. looking for candidates with that limits job growth.graduate degrees in industrialmanagement or businessadministration.

Painting Control machinery $11.37 / Most jobs do not require a Employment is expected toand that applies paints and hour specific degree. Training can grow about as fast as theCoating coatings to a wide last from a few days to several average for all occupations.Workers range of manufactured months. Additional training in Growth for high skilled

products. computer operations and minor painters is expected to beprogramming may be required slightly faster than for lesserfor operation of computer- skilled painting, coating, andcontrolled equipment. spraying machine operators.

Source: Bureau of Labor Statistics, Occupational Outlook Handbook - 2002-2003 Edition.Available at www.bls.gov/oco/home.htm.


Job Title Job Description Approximate Earnings

Typical Educational Requirements

Machine Operators

Operate and tend to machines that produce plastics.

$8-$11 / hour, or $16,000-$22,000 / year

Process Engineers

Help design plastic products and create innovative ways to use plastics.

$17-$21 / hour, or $35,000 - $43,000 / year

College degree

Material Handlers

Ensure the raw materials needed for daily production are in the appropriate locations and readily available for production. Also involved in preparatory processes such as mixing, blending, and coloring the raw materials.

$9-$10 / hour, or $19,000 - $21,000 / year

Quality Assurance Inspectors

Ensure finished products are defect-free.

$10 / hour, or $21,000 annually

Troubleshooters (also known as set-up technicians)

Forecast, identify, and adjust equipment problems to improve the efficiency of operations.

$11-$15 / hour, or $22,000 - $31,000 / year

Computer-Aided Design (CAD) Specialists

Develop designs for customers’ products using powerful computer hardware and software.

$15-$19 / hour, or $31,000 - $39,500 / year

Special training in CAD machines and fundamentals is required.

Moldmakers Use precise calculations and sophisticated computer systems to design and build custom molds used in plastic processing.

Depends on level of training – ranges from $9.50-$13.50 / hour ($20,000-$28,000 / yr.) to $15-$19 / hour ($31,000-$40,000 / yr.)

4 years in apprenticeship training.

Technical Job Opportunities Within Plastics Processing

Varies

Varies

Varies

Source: Society of the Plastics Industry, “Get a Career in Plastics!” Brochure

Varies


Workforce Development Role Profiles


ROLE PROFILES

A profile for each of the seven technical roles listed below begins on the following page whichincludes the role definition, outputs and quality requirements, competencies and required levels ofexpertise, ethical challenges as presented earlier in this report.


Outputs and QualityRequirements

1. Breakdown diagnosis• The structure and design of the equipment is understood• The breakdown is properly documented• The breakdown is brought to the attention of appropriate personnel• It minimizes downtime

2. Equipment repair• It is conducted in a safe manner• It is thorough• Equipment returns to production in a timely manner• It is given a test-run• It is effective• The details of the repair are properly recorded

3. Preventative Maintenance (PM)• They follow specified PM instructions• They lower equipment failure rates• It identifies potential problems• Maintenance data is properly recorded• They are accurate

4. Equipment rebuilding• The structure and design of the equipment is understood• It is conducted in a safe manner• It performs to desired specifications• It is cost effective to rebuild

5. Installation Support• It follows manufacturer’s suggested installation instructions• Startup occurs with minimal problems the equipment functions appropriately• It is conducted in safe manner• Equipment manuals are filed properly

6. Facility (non-process) maintenance• Process interruptions do not occur• Environmental systems operate efficiently• Lighting is adequate for production needs• Facility is clean• Materials and supplies are in appropriate locations

7. Equipment calibration• The structure and design of equipment is understood• Equipment capacities meet required performance standards• It meets process requirements• It meets manufacturer’s suggested specifications• Downtime is minimized

Maintenance The role of continuous, preventative, and predictive maintenance of equipment,machinery, tools, and other functional devices.


8. Evaluate and upgrade equipment• It improves process efficiency• It meets process expectations• It is conducted in a safe manner• It is cost effective

9. Documentation• It is up-to-date• It is complete• It is readily accessible• It is properly identified• It is legible• It is accurate

10. Maintenance planning• Process interruptions are minimal• Maintenance supplies are available when needed• It meets schedule compliance

11. Development of mechanical instructional procedures• They are easily understood by maintenance personnel• They reflect manufacturer’s recommendations• They are easily accessible• They are readily available• They are thorough• They emphasize safety


Competencies Role-Specific Competencies Level of Expertise Required

Business Understanding IntermediateChange Management Near ExpertCoaching IntermediateCommunication IntermediateCustomer Focus Near ExpertDecision-Making Ability Near ExpertDesign of Experiments IntermediateElectromechanical Technology Near ExpertEquipment-Based Computer Skills Near ExpertExtruding IntermediateFilm Formation IntermediateFinishing & Decorating IntermediateHydraulics and Pneumatics Near ExpertIndustry Understanding Near ExpertInnovativeness Near ExpertLeadership Near ExpertMolding Near ExpertOrganization Near ExpertPrint Reading Near ExpertProcess Management Near ExpertProcessing Near ExpertProject Management Near ExpertQuestioning Near ExpertRelationship Building Skills IntermediateResearch Skills IntermediateSelf-Knowledge / Self-Management IntermediateSystems Thinking Near ExpertTeamwork Near ExpertTechnical Communications Near ExpertTime Management Near ExpertTroubleshooting Near Expert

Ethical Challenges1. Protecting all intellectual property.2. Ensuring truth in claims, data, and recommendations.3. Recommending solutions appropriate for the customers’ or users’

needs.4. Pricing or costing products or services fairly.5. Be objective when examining and verifying the analysis of data.6. Put in a full day’s work for a full day’s pay.7. Sacrificing pollution control and environmental standards for high

productivity.8. Exchanging a safe work environment for organizational gain.


Materials Planning The role of preparing and organizing the acquisition, transportation, and/or sequential use of materials needed for business operations.


1. Attainment of departmental material requests• There is a specific submission process for departments to follow• Departments are kept informed of any pending deadlines• Departments are encouraged to conduct inventory and material checks• Last minute changes are minimal• The requests are processed in a timely manner• The requests are processed accurately

2. Communication of material deliveries• Information is conveyed to the appropriate personnel• Complaints are minimal• It is timely• It is accurate

3. Materials forecast• Material shortages do not occur• Material overages are minimized• Emergency orders are minimized• External factors are considered (ie: holiday delays in shipping, relocation of supplier

facilities, etc.)• Appropriate forecasting techniques are utilized

4. Supplier qualification• It designates suppliers as either qualified or unqualified based on

Specifications• Only qualified suppliers are utilized• Past performance and industry reputation are considered• Suppliers perform within organizational requirements• Long-term relationships are established• It is accurate

5. Negotiation of price quotations and contracts with suppliers• Cost considerations are favorable• The negotiation process is win-win• Material quality remains high and is not compromised• Terms are agreeable and do not jeopardize the stability of the organization• Terms are clear, articulate, and well-organized• Internal and external expertise is utilized during negotiation

6. Order materials necessary for business operations• Inventories are properly maintained• Purchase orders are processed in a timely manner• Purchase orders are accurate• Purchase orders are maintained and filed appropriately• Vendors are held accountable for materials ordered


7. Delivery scheduling• Materials arrive when needed• Method of delivery is cost effective• Method of delivery meets plant capability• Delivery invoices are approved by appropriate personnel• Receiving personnel are made aware of pending deliveries

8. Inventory control• Product turnover meets company standards• Inventory records are up-to-date• Inventory is properly packaged to meet company specifications• Inventory variance is within company standards• Spoilage is minimized• Shrinkage (ie: from misplacements or theft) is minimized• Items are properly located

Competencies Level of ExpertiseRole-Specific Competencies Required

Business Understanding IntermediateChange Management IntermediateCommunication Near ExpertCustomer Focus Near ExpertDecision-Making Ability Near ExpertDesign of Experiments IntermediateEquipment-Based Computer Skills IntermediateIndustry Understanding Near ExpertInnovativeness Near ExpertLeadership Near ExpertOrganization Near ExpertProcess Management Near ExpertProcessing IntermediateProject Management Near ExpertQuestioning IntermediateRelationship Building Skills IntermediateResearch Skills IntermediateSelf-Knowledge / Self-Management IntermediateSystems Thinking IntermediateTeamwork Near ExpertTroubleshooting Intermediate

Ethical Challenges

1. Maintaining appropriate confidentiality.2. Protecting all intellectual property.3. Ensuring truth in claims, data, and recommendations.4. Avoiding conflicts of interest.5. Managing personal biases.6. Recommending solutions appropriate for the customers’ or users’

needs.


7. Pricing or costing products or services fairly.8. Falsifying data.9. Assigning credit appropriately.10. Be objective when examining and verifying the analysis of data.11. Put in a full day’s work for a full day’s pay.


Production The role of operating and tending to equipment and processes that producea finished product.


1. Material collection• Correct materials are retrieved• Materials are closely examined• It is conducted safely• It is timely• Work meets company specifications

2. Equipment preparation• It follows a Standard Operating Procedure (SOP)• The equipment runs smoothly after start-up and changeovers• It is conducted safely• Downtime is minimized

3. Equipment operation• It meets production quantity goals• It meets quality specifications• It is efficient• It is conducted safely

4. Inventory replenishments• The finished product is placed in the appropriate inventory location• Inventory records are updated• The finished product is not damaged in the transporting process• It is conducted safely• It is timely

5. Utilization of SPC (Statistical Process Control) and other production data• Data is collected at proper intervals from correct sources• The data is properly recorded• The data is interpreted accurately• Appropriate courses of action are taken as a result of data findings

6. Identification of maintenance issues• A work order (or other form of written notification) is provided to maintenance

personnel• The issue is brought to the attention of appropriate personnel for a safety review• Other equipment handlers are made aware of the maintenance issue• It is timely• It is accurate

7. Production forecasting and planning• It meets production goals• Operator and/or production area is prepared for planned work• Proper manpower and equipment are available• It falls within resource constraints (ie: workers, time, budget)• Plans are reviewed and adjusted on a periodic basis



Business Understanding IntermediateChange Management IntermediateCoaching Near ExpertCommunication Near ExpertCompounding IntermediateCustomer Focus Near ExpertDecision-Making Ability Near ExpertEquipment-Based Computer Skills IntermediateGroup Process Understanding IntermediateIndustry Understanding IntermediateInnovativeness Near ExpertLeadership Near ExpertMolding IntermediateOrganization IntermediatePrint Reading IntermediateProcess Management IntermediateProcessing Near ExpertProject Management Near ExpertQuestioning IntermediateRelationship Building Skills Near ExpertResin and Additive Formulation IntermediateSelf-Knowledge / Self-Management IntermediateTeamwork Near ExpertTechnical Communications Near ExpertTime Management IntermediateTroubleshooting Near Expert

Ethical Challenges

1. Protecting all intellectual property.2. Ensuring truth in claims, data, and recommendations.3. Recommending solutions appropriate for the customers’ or users’

needs.4. Be objective when examining and verifying the analysis of data.5. Put in a full day’s work for a full day’s pay.6. Sacrificing pollution control and environmental standards for high

roductivity.7. Exchanging a safe work environment for organizational gain.


Quality Assurance The role of promoting business excellence through the continuous improvement,and integration of, the management systems of the organization to ensure that itsinputs, outputs, and processes meet or exceed the quality expectations of itscustomers.


1. Rectification of customer complaints• It is solved to the customer and company’s satisfaction• It builds better customer relations• It reduces complaints• It accurately identifies customer problems• It follows an appropriate course of action

2. Quality certification attainment• It is maintained• It reduced defects created through production errors• It increases quality levels• It improves the organization’s quality reputation• It meets customers’ quality requirements

3. Quality assurance training• It increases product quality• It reduces customer returns• It educates personnel on the importance of quality• It is aligned with the organization’s mission• Quality assurance techniques are understood by trainees

4. Statistical process control• SPC concepts are clearly understood• Data is recorded accurately• Data is interpreted correctly• It decreases defects• It recognizes defects• It decreases customer returns• It increases customer satisfaction• It prevents resource waste (ie: time, money)

5. Quality checks• They reduce customer returns• They increase customer satisfaction• They are conducted on a regular basis• They are thorough• They are accurate

6. Continuous improvement• It decreases scrap rates, thereby increasing production• It increases customer satisfaction• It increases quality


• It is cost effective• It is measured on a continuous basis• It is part of the organization’s mission

7. Test equipment calibration• The equipment performs appropriately• It meets company specifications• It is conducted safely• It is accurate


Business Understanding Near ExpertChange Management Near ExpertCoaching IntermediateCommunication Near ExpertCustomer Focus Near ExpertDecision-Making Ability Near ExpertDesign of Experiments IntermediateEquipment-Based Computer Skills Near ExpertIndustry Understanding IntermediateInnovativeness IntermediateLeadership Near ExpertOrganization Near ExpertProcess Management Near ExpertProcessing Near ExpertProject Management IntermediateQuestioning IntermediateRelationship Building Skills Near ExpertResearch Skills Near ExpertSelf-Knowledge / Self-Management IntermediateSystems Thinking Near ExpertTeamwork Near ExpertTechnical Communications IntermediateTime Management Near ExpertTroubleshooting Near Expert

Ethical Challenges 1. Maintaining appropriate confidentiality.2. Protecting all intellectual property.3. Ensuring truth in claims, data, and recommendations.4. Falsifying data.5. Be objective when examining and verifying the analysis of data.6. Put in a full day’s work for a full day’s pay.7. Exchanging a safe work environment for organizational gain.


Research & Development The role of performing studies, experiments, and/or research analyses togenerate new understandings and innovations.


1. New product development• It satisfies one or more of customers’ unmet needs• It falls within production constraints and capabilities• It is aligned with the organization’s vision and strategy• It is cost-effective to produce• It is innovative• It has a target market

2. New product specifications• Specifications are finalized once product samples have been produced• Product Manufacturing Instructions (PMIs) have correct specifications• Appropriate material safety data sheets are provided• They are clear• They are thorough

3. Technical support• The function and design of the product or equipment is understood• The problem is accurately diagnosed• The problem is resolved within technical specifications• The information provided is clear and relevant• It is timely

4. Development of new equipment• It provides for a stated need• It functions as designed• It meets economic/cost guidelines• It meets safety requirements• Breakdowns and malfunctions are minimal• It is efficient

5. Development or specification of new materials• It provides for a stated need• The new materials function as designed• The new materials are compatible with existing machinery• It is cost-effective to use the new materials• It improves productivity• Product quality is improved

6. Feasibility studies• They are supported by proper research• The information collected justifies new product development• They are cost-effective• They are comprehensive• They are accurate


7. Product manufacturing instructions (PMIs)• They are clear and understandable• They are in logical task orientation• They emphasize safety• They are thorough• They are accurate

8. Interaction with marketing in product innovation• It leads to a commercially viable innovation• It increases sales• It meets customer needs

9. Analytical and physical testing• Appropriate analytical methods are utilized• It meets desired specifications• It is thorough• It is timely• It is accurate

10. Redesign of existing equipment• It serves a stated purpose• It increases productivity• It improves product quality• The equipment functions appropriately• It is cost-effective• It enhances safety• Workers are able to operate the newly designed equipment

11. Development of new processes• It provides for a stated need• It functions as intended• It meets economic/cost guidelines• It does not surpass plant capabilities• Process malfunctions are minimal• It is efficient• It meets safety requirements• It is justified by returns on investment

12. Specifications and data sheets for new products• They fall within plant capabilities• They lead to successful product entry• Product data sheets reflect product specifications• They are thorough• They are accurate


Competencies Role-Specific Competencies Level of Expertise Required

Communication Near ExpertCustomer Focus Near ExpertDecision-Making Ability Near ExpertDesign of Experiments Near ExpertEquipment-Based Computer Skills Near ExpertInnovativeness IntermediateLeadership Near ExpertModel Building IntermediateOrganization Near ExpertPrint Reading IntermediateProcess Management Near ExpertProcessing IntermediateProject Management Near ExpertQuestioning Near ExpertRelationship Building Skills IntermediateResearch Skills Near ExpertResin and Additive Formulation Near ExpertSelf-Knowledge / Self-Management IntermediateSystems Thinking IntermediateTeamwork Near ExpertTechnical Communications Near ExpertTime Management Near ExpertTroubleshooting Near Expert

Ethical Challenges

1. Maintaining appropriate confidentiality.2. Protecting all intellectual property.3. Ensuring truth in claims, data, and recommendations.4. Recommending solutions appropriate for the customers’ or users’

needs.5. Making misleading claims regarding return-on-investment.6. Falsifying data.7. Assigning credit appropriately.8. Withholding information or establishing unrealistic expectations.9. Be objective when examining and verifying the analysis of data.10. Put in a full day’s work for a full day’s pay.11. Sacrificing pollution control and environmental standards for high



Risk Assessment The role of maintaining regulatory compliance to local, state, and federalagencies, and seeking continuous improvement in employee safety,environmental awareness, and product liability.


1. Development and implementation of a risk management plan• It considers all requirements for having a risk-free environment• It is communicated throughout all levels of the organization• It is legally sound• It is effective in reducing risk

2. Product liability reviews• They have verification and validation• They use internal and external expertise

3. Accident investigations• All involved personnel are interviewed• Root cause is established• They identify other potential causes or dangers• They initiate corrective action• They are properly documented

4. Accident prevention• Workplace safety training is conducted• Safety audits are conducted• The importance of safety is communicated throughout all levels

of the organization• Employees are acknowledged for demonstrated safe behavior• Demonstrations of unsafe behavior are immediately corrected• Workers feel free to voice safety concerns

5. Vendor risk assessment• It includes background checks• It includes credit checks• It includes an on-site survey

6. Vendor risk communication• Product information describes input and output specifications• Products meet the organization’s risk standards• Vendors have a shared sense of responsibility

7. Safety programs and training• They follow all local, state, and federal regulations• They properly communicate safety policies• They are frequently conducted for both new and existing employees



Business Understanding IntermediateChange Management IntermediateCoaching Near ExpertCommunication Near ExpertCustomer Focus IntermediateDecision-Making Ability Near ExpertExtruding IntermediateGroup Process Understanding IntermediateIndustry Understanding IntermediateInnovativeness IntermediateLeadership Near ExpertOrganization IntermediatePrint Reading IntermediateProcess Management IntermediateProcessing Near ExpertProject Management IntermediateRelationship Building Skills Near ExpertResearch Skills Near ExpertResin and Additive Formulation Near ExpertSelf-Knowledge / Self-Management Near ExpertSystems Thinking Near ExpertTeamwork IntermediateTechnical Communications Near ExpertTime Management Near ExpertTroubleshooting Near Expert

Ethical Challenges

1. Maintaining appropriate confidentiality.2. Protecting all intellectual property.3. Ensuring truth in claims, data, and recommendations.4. Avoiding conflicts of interest.5. Managing personal biases.6. Recommending solutions appropriate for the customers’ or users’

needs.7. Pricing or costing products or services fairly.8. Exercising power or authority judiciously.9. Making misleading claims regarding return-on-investment.10. Using client information for personal gain.11. Falsifying data.12. Assigning credit appropriately.13. Making false claims about another’s behaviors or accomplishments.14. Withholding information or establishing unrealistic expectations.15. Be objective when examining and verifying the analysis of data.16. Put in a full day’s work for a full day’s pay.17. Sacrificing pollution control and environmental standards for high



Technical Support The role of applying scientific and mathematical principles to find feasiblesolutions to problems and opportunities.


1. Process improvement• It increases productivity• It increases plant capacity• It increases profits• It decreases scrap levels and waste• It does not compromise quality• It is within workers’ capabilities• It is cost-effective

2. Relationship development• Strong relationships are built with both suppliers and customers• Suppliers understand needs• Technical problems are resolved• Customer and supplier loyalty is built• Communication is effective

3. Process optimization• It maximizes throughput• It increases plant capacity• It minimizes downtime• It increases profits• It does not compromise quality• It does not compromise safety considerations• It is within workers’ capabilities• It is cost-effective

4. Cycle time determination for new products• It analyzes data properly• It communicates properly with appropriate departments• It understands equipment capabilities• It understands material characteristics

5. Recycling• It determines the reason for material return• It meets company specifications• It is reintegrated into company processes properly• It is financially beneficial for the company• It does not compromise quality

6. New equipment installation• It meets specifications• It is installed properly• It involves appropriate personnel in the installation• It follow safety guidelines• It is timely



Business Understanding IntermediateChange Management IntermediateCoaching IntermediateCommunication Near ExpertCompounding IntermediateCustomer Focus Near ExpertDecision-Making Ability Near ExpertDesign of Experiments Near ExpertEquipment-Based Computer Skills IntermediateGroup Process Understanding Near ExpertInnovativeness Near ExpertLeadership Near ExpertModel Building IntermediateOrganization Near ExpertPrint Reading IntermediateProcess Management Near ExpertProcessing Near ExpertProject Management Near ExpertQuestioning Near ExpertResearch Skills Near ExpertResin and Additive Formulation Near ExpertRheology Near ExpertSelf-Knowledge / Self-Management Near ExpertSystems Thinking Near ExpertTeamwork Near ExpertTechnical Communications Near ExpertTime Management Near ExpertTroubleshooting Near Expert

Ethical Challenges

1. Ensuring truth in claims, data, and recommendations.2. Recommending solutions appropriate for the customers’ or users’

needs.3. Be objective when examining and verifying the analysis of data.4. Put in a full day’s work for a full day’s pay.5. Exchanging a safe work environment for organizational gain.


External Resources Used for the Construction of Preliminary Roles and Competencies

Industry publications:

Ohio Department of Development, Ohio Tech Prep Initiative, Polymer Processors Association(1996). Plastics technical competency profile. Columbus, OH: Center on Education andTraining for Employment, The Ohio State University.

The Southern Technology Council and the Southern Growth Policies Board (1997). Workforceresources for the plastics industry. Research Triangle Park, NC: Southern Growth PoliciesBoard.

Websites:

ALIS Occupational Profiles: www.alis.gov.ab.ca/occinfo/frameset.aspAmerican Chemical Society: www.acs.org/portal/Chemistry

Occupational Skill Standards Projects: www.nssb.org/projects.chemstd.htmlAmerican Institute of Chemical Engineers: www.aiche.orgBureau of Labor Statistics: www.bls.gov/home.htm

Occupational Outlook Handbook: www.bls.gov/oco/home.htmCareerPlanit: www.careerplanit.com/resource/profile.aspHDRC’s Occupational Profiles: www15.hrdc-drhc.gc.ca/english/default.aspMississippi Polymer Institute: www.psrc.usm.edu/MPI/frontpg.htmSociety of Plastics Engineers: www.4spe.org

Career and job opportunities listed on the following companies’ websites were reviewed to identify thetypes of workers, skill sets, and educational requirements that key polymer industry players are searchingfor:

Abbott LaboratoriesAdvanced Elastomer SystemsAkzo Nobel Polymer Chemicals LLCBASFDuPontGAS Technology InstituteGE PlasticsMaxdemMaxwell TechnologiesMillennium Chemicals, Inc.MS Polymer Technologies, Inc.Rohm & HaasShellThe Polymer Technology Group, Inc.

analysis of the micro economic environment and labor needs

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