How financially stable is your plastic injection moulder?

How financially stable is your plastic injection moulder?

Have you considered the potential impact if they were to go into administration or declare bankruptcy?


After years of disruption and financial crisis some UK moulders are at risk

The plastic injection moulding process has pretty much been the same for the past century. Molten plastic is forced under pressure to fill a mould cavity where it cools, hardens and is then released forming the plastic part. New machines have changed the costs base though, they are much more energy efficient, have faster cycle times and improved the quality through analytical software dashboards. As the pressures of the pandemic shutdowns and Brexit linger, the inflationary impact of increased wages and skyrocketing energy costs hit, margins are squeezed and financial pressures start to bite.


TEX Plastics has invested in being more cost effective and sustainable

A key factor in TEX Plastics ongoing success is a continual investment in being more efficient. Whether through energy efficient machines, continual improvement of manufacturing processes, added value services, or simply reducing waste and making every part more sustainable. This investment is possible because TEX Plastics is a TEX Group Company, which means it has a solid financial backing, enabling it to ride out economic downturns and invest to be more cost effective.


What’s your plan B if your current plastic moulding supplier fails?

  • When was the last time you checked the financial stability of your supply chain?
  • What would be the impact on your business if your plastic injection moulder failed?
  • How long would it take to get plastic parts made elsewhere?


Does your business contingency plan answer these questions?

If a business outsources its plastic parts production to a plastics injection moulder, and that moulder goes out of business, it can have several implications for the OEM. Here are some potential consequences:


Production Disruption

The most immediate and significant impact would likely be a disruption in production. If the plastics injection moulder was a critical part of the supply chain, the business may face delays in manufacturing their products.


Supply Chain Issues

The business may need to find an alternative plastics injection moulder to fulfil their orders. This process could take time, especially if the original moulder had unique capabilities or specialised equipment.


Cost Implications

Finding a new supplier may come with additional costs. It could be more expensive to produce the plastic parts, especially if the new supplier does not offer the same economies of scale or competitive pricing.


Quality Concerns

Switching suppliers abruptly may also raise concerns about the quality of the plastic parts. Different moulders may have variations in their processes, equipment, and quality control measures.


Intellectual Property Considerations

If the original plastics injection moulder was involved in the design or development of the plastic parts, there could be intellectual property considerations. The outsourcing company may need to negotiate the transfer of moulds, tooling or other proprietary information.


Legal and Contractual Issues

The outsourcing company may need to review contracts and legal agreements with the now-bankrupt moulder. This could involve negotiations, legal proceedings, or finding a resolution for any outstanding issues.


Reputation Impact

Delays in production, changes in suppliers, or any decline in product quality can impact the reputation of the outsourcing company. Customers and clients may be affected, and the business may need to communicate effectively to manage expectations.


Capacity Constraints

Depending on the demand for plastic parts and the availability of alternative moulders, the outsourcing company may face challenges in finding a new supplier with the capacity to meet their production needs.


The bankruptcy or closure of a plastics injection moulder used by a business can have cascading effects on various aspects of the supply chain. Businesses need to have contingency plans, strong supplier relationships, and risk mitigation strategies in place to navigate such disruptions effectively.


TEX Plastics are offering a free ‘Plan B’ option

Companies today are expected to have a Plan B for everything from data back-up to power supply. If your line feed needs plastic injection moulded components and is ‘just in time’ then you need to carefully consider the consequences. TEX Plastics are the first company to offer a free audit of your current tooling and moulding needs with a view to designing you a Plan B option – just in case your current moulder has difficulties.

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