Weathering Resin Price Swings: How Partnerships Keep Manufacturers Moving

Understanding Resin Price Volatility

Resin price volatility is driven by a combination of supply chain disruptions, global energy costs, and shifts in demand. When oil or natural gas prices rise, resin costs tend to follow. Severe weather events, plant outages, transportation bottlenecks, or geopolitical conflicts can further tighten supply. Adding to the uncertainty, strong demand in packaging, construction, or automotive markets can quickly push prices even higher.

Because commodity resins like polyethylene, polypropylene, and ABS are traded globally, manufacturers can experience sharp cost swings in a matter of weeks. During times of scarcity, resin producers may even allocate materials, making it difficult for manufacturers to secure enough supply to meet production goals.

Why Volatility Puts Manufacturers Under Pressure

When resin prices fluctuate, manufacturers face a complex set of challenges. Higher material costs can erode profit margins, particularly when customer contracts lock in pricing for finished goods. Forecasting and budgeting become difficult, and operations teams constantly have to adjust schedules and inventory levels to avoid the polar extremes of stockouts or excess inventory that could later lose value.

Volatility also disrupts planning and customer confidence. A sudden shortage or shipment delay can ripple through the supply chain, potentially delaying product launches or forcing production slowdowns. For manufacturers striving to deliver high-quality components on time, resin price instability adds risk at nearly every level of the business.

Adding to these pressures, global supply restrictions—such as China’s recent export ban on antimony oxide, a key flame-retardant additive—can further complicate resin supply. Limited access to critical additives can drive up costs, delay production, or require reformulating resins, making it even more challenging for manufacturers to maintain consistent output and quality.

Partnerships Are Key to Reducing Risk

When commodity resin price volatility becomes the norm, strong partnerships can make all the difference. Rather than taking a purely transactional approach to sourcing, manufacturers that collaborate closely with trusted suppliers are better equipped to anticipate, adapt, and absorb market shocks.

Strategic manufacturing partners can help mitigate risk in several ways: 

• Better communication and forecasting: Early insight into potential price changes or material shortages allows for proactive planning.
• Access to alternative materials: When one resin becomes scarce, an experienced partner can suggest equivalent or better-performing options.
• Leverage in supplier relationships: Established partnerships often provide more flexibility and stability during allocation periods.

In essence, the strength of a manufacturer’s supply network can determine how well they navigate unpredictable market conditions. And with true collaborative partnerships, suppliers see the big picture and can anticipate future challenges. This allows them to offer solutions and guidance before production is affected.

How New Berlin Plastics Helps Customers Stay Resilient

At New Berlin Plastics, we understand that resin supply doesn’t just affect the bottom line—it can disrupt your entire production strategy. That’s why we’ve built our business around resilient systems, reliable relationships, and proactive communication.

Our team maintains long-term partnerships with a diverse network of resin suppliers, giving us insight into market trends and helping us secure materials even during periods of tight supply. These relationships allow us to communicate early and honestly with customers, helping them plan and make informed decisions.

In addition to supplier strength, we use data-driven procurement and inventory management systems to track usage patterns and forecast demand. This ensures we can act quickly if the market shifts, whether that means adjusting production schedules, exploring material alternatives, or leveraging existing inventory to prevent delays.

Our broad press range and engineering expertise also give us flexibility. If a specific resin becomes constrained, we can often identify comparable materials or make design adjustments that maintain performance and quality. This adaptability keeps projects moving forward without costly interruptions.

A True Manufacturing Partner, Not Just a Supplier

New Berlin Plastics takes a long-term view on customer partnerships. Our goal isn’t just to mold parts. It’s to help you grow and thrive, even in unpredictable markets. By aligning with your business goals and understanding your production requirements, we act as a stabilizing force when external conditions fluctuate.

When volatility strikes, you shouldn’t have to worry about whether your injection molder can deliver. You should know they’re already planning for it.

Turn Volatility Into Opportunity

While no one can control resin markets, manufacturers can control how they respond. Partnering with a proactive, well-connected injection molder helps transform uncertainty into opportunity. With the right systems, communication, and supply chain strength, you can continue to scale production, protect profitability, and meet customer expectations even when the market is shaky.

At New Berlin Plastics, we’re committed to helping OEMs navigate material volatility with confidence. Our combination of supplier partnerships, advanced planning systems, and production flexibility ensures that our customers can keep moving forward—no matter what the market does next.

If you’re looking for a manufacturing partner that can help your business stay resilient amid swings in resin prices, connect with New Berlin Plastics today.