Synthetic resins and their raw materials / A survey of the types and uses of synthetic resins, the organization of the industry, and the trade in resins and raw materials, with particular references to factors essential to tariff consideration. Under the general provisions of section 332, title III, part II, Tariff act of 1930.

by United States Tariff Commission

12. ORGANIZATION OF THE SYNTHETIC RESIN INDUSTRY

The discussion of the various synthetic resins on pages [11 to 52] carries in each case, under the heading of production, a notation of the number of companies producing that particular resin; and the discussion on pages [86 to 141] of important raw materials for these resins describes briefly the conditions under which these materials are produced. We shall now consider the interrelationships between industries producing the several resins, and the relation of the resin industries to their raw materials and to some of the important resin-consuming industries.

No description of the organization of a rapidly expanding industry can be expected to remain accurate for long. But regardless of future changes that may be expected, the general pattern seems definite enough to make possible a few broad generalizations. At present the producers of synthetic resins may be classified in two groups: those making alkyd and tar-acid resins, and those making all other synthetic resins.

The alkyd resins and the tar-acid resins are produced in large volume, and for these resins the patent situation is such that there is nothing to exclude new producers. The result has been that new firms have entered the field and there has been a marked tendency for concerns using these resins on a large scale to produce them. This general situation may be expected to continue as long as the volume of consumption of these resins is rising. But when consumption levels off, it would not be surprising if increased competition for new business resulted in consolidations of some of the producing units.

Each of the other synthetic resins is produced by a small number of firms and this may be expected to continue as long as the production of a particular resin is small, or basic patents dominate the situation. When and if the situation in these respects changes for some of the other resins, they will probably develop the same tendencies as now exist in the production of the tar-acid and alkyd resins.