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Hexpol Compounding Americas expects 'mixed outlook' for 2023 demand
BURTON, Ohio—Hexpol Compounding Americas, a division of Malmo, Sweden-based Hexpol A.B., is seeing a mixed trend in demand in the region, with the automotive industry in recovery mode, particularly in Mexico.
In its capital markets day March 20, the Swedish group said it expects the automotive industry to grow 5.2 percent year-on-year in the Americas, while industrial production will see a marginal decline of 0.4 percent.
Furthermore, energy markets reflect increasing U.S. rig counts of 35 percent year-on-year, while supply to the overall infrastructure industry is set to grow, said Gary Moore, president of Hexpol Compounding Americas.
Meanwhile, labor challenges are likely to continue with part makers potentially prioritizing fabrication.
In Mexico, Moore said, growth continues as Asian and European parts makers move toward bringing fabrication capacity to the country.
The shift will reduce length of supply chain while mitigating future issues related to freight and global events.
In its capital markets day March 20, the Swedish group said it expects the automotive industry to grow 5.2 percent year-on-year in the Americas, while industrial production will see a marginal decline of 0.4 percent.
Furthermore, energy markets reflect increasing U.S. rig counts of 35 percent year-on-year, while supply to the overall infrastructure industry is set to grow, said Gary Moore, president of Hexpol Compounding Americas.
Meanwhile, labor challenges are likely to continue with part makers potentially prioritizing fabrication.
In Mexico, Moore said, growth continues as Asian and European parts makers move toward bringing fabrication capacity to the country.
The shift will reduce length of supply chain while mitigating future issues related to freight and global events.
This project has been co-funded with the support of the LIFE financial instrument of the European Union [LIFE17 ENV/ES/000438] Life programme
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