Despite the significant uncertainty brought about by the current tariff issues, the industry still hopes to see more merger and acquisition transactions in fields such as orthopedics and interventional cardiology; major merger targets are expected to gradually shift towards publicly listed companies. Recently, the ranking of the top 100 global medical device companies was released. Based on the 2024 annual revenue, Medtronic ranked first with a revenue of $33 billion; Johnson & Johnson ranked second with a revenue of $30.4 billion; Abbott and Danaher followed closely with revenues of $27.9 billion and $24 billion, respectively. Other medical device companies in the top ten include Stryker, Siemens Healthineers, BD Medical, GE Healthcare, and Philips, all with revenues around $20 billion. In recent years, mergers and acquisitions in the medical device sector have driven the trend of "the strong getting stronger" among giant companies, benefiting from the ample cash flow of large enterprises. By acquiring and integrating a significant number of innovative technologies, medical device giants have further solidified their positions in certain specific fields. In 2024, Johnson & Johnson announced two major acquisitions, purchasing cardiovascular medical device company Shockwave for $13.1 billion and atrial shunt manufacturer V-Wave for $1.7 billion. Medtronic acquired Fortimedix Surgical, an innovative medical device company in the endoscopy field. BD Medical acquired the entire line of critical care products from Edwards Lifesciences for $4.2 billion in cash. Since 2025, the enthusiasm for mergers and acquisitions among major medical device companies has not waned. In January of this year, orthopedic giant Stryker announced its acquisition of venous thromboembolism (VTE) medical device company Inari Medical for a total cash consideration of $4.9 billion; Siemens Healthineers completed the acquisition of industrial simulation and analytics software provider Altair for $10 billion; Medtronic acquired part of the intellectual property used for the development of the next-generation PEEK intervertebral fusion devices from Nanovis, a nano-surface technology supplier; Medtronic also increased its investment in Contego Medical, a provider of blood revascularization therapy solutions. Despite the current tariff issues bringing significant uncertainty to the industry, there is still anticipation for more mergers and acquisitions. As the U.S. IPO market warms up, the motivation for private companies to be acquired may decrease, and the share prices of listed companies are far from reaching their peak. It is expected that major M&A targets will gradually shift towards listed companies in the future. Regarding the popular acquisition targets in the medical device industry, analysts believe that as more large medical device companies bet on the peripheral vascular market, leading companies in this field are worth paying attention to; surgical robots remain a hot sector that requires significant investment in research and development, and private companies urgently need the resources of large companies to survive; in addition, fields such as orthopedics and interventional cardiology will continue to be "strategic tracks." Johnson & Johnson expects to continue expanding its interventional cardiology product portfolio. Tim Schmid, the global chairman of Johnson & Johnson MedTech, stated last year that the company would triple its market size through acquisitions. Johnson & Johnson CEO Joaquin Duato has invested over $30 billion in mergers and acquisitions for the company's medical technology business within less than two years of taking office. In addition to the acquisition of Shockwave, Johnson & Johnson has also acquired artificial heart manufacturer Abiomed and heart implant developer Laminar in the past two years. Du Anqing previously stated that the company will continue to maintain its momentum in mergers and acquisitions, including small acquisitions and large deals, in order to achieve long-term growth. This is related to Johnson & Johnson's strong cash flow and balance sheet. Although the company mentioned in its recent quarterly financial report that its medical technology business might face a profit loss of $400 million in the fiscal year 2026 due to tariffs, industry insiders believe that Johnson & Johnson still has considerable flexibility to consider various types of transactions. "A company's abundant cash flow is the foundation for carrying out M&A transactions," Shen Yi, Danaher's Global Vice President and Head of Strategic Investment and M&A for the Asia-Pacific region, told the First Financial Daily. He also mentioned that Danaher's cash flow has exceeded the company's profits almost every quarter over the past decade. "In over 400 M&A transactions in its past history, Danaher has made all acquisitions except for one mega deal valued at $200 billion in cash, with 85% of its cash being used for acquisitions," said Shen Yi. Medtronic CEO Geoff Martha has indicated that the company will adopt a "top-down" precision strategy, focusing on small-scale acquisitions. Martha did not disclose specific targets, but he emphasized the importance of small acquisitions and portfolio management. Boston Scientific Corporation has also been quite active in mergers and acquisitions over the past year, benefiting from its relatively strong profit margins in recent years. Analysts predict that the company's PFA pulsed field ablation product, Farapulse, will drive continued profit growth in 2025. In 2024, Farapulse's annual revenue exceeded $1 billion.

Plastic resin production declined in March even as overall US chemical output edged upward, according to the American Chemistry Council’s (ACC) latest Weekly Chemistry and Economic Trends report. Tariffs also have had an impact on chemical output, according to the report. “Prior to the tariff announcements, there had been further progress on inflation,” the ACC said in its report. “Growth in consumer prices is now expected to accelerate in 2025 to a 3.1% pace before easing to a 2.7% pace in 2026.” Tariffs introduced in early April, combined with retaliatory moves from China and Canada, are casting a long shadow over the second quarter, according to the report. Although a recession isn’t currently forecasted, the risk has escalated significantly. ACC said it is "monitoring the tariffs situation and continuing to analyze it as the circumstances develop." The ACC report, released April 18, indicated that oil prices moved higher compared to the previous week as new sanctions were put in place targeting Chinese imports of Iranian oil, while Iraq agreed to cut its oil imports. The ACC’s latest Survey of Economic Forecasters shows that nearly all economic indicators have weakened since March. Industrial production, which fell 0.3% in 2024, is projected to grow by just 0.9% in 2025 and 1.0% in 2026 — sobering figures for plastics producers tied closely to US manufacturing output. Housing starts fall The ACC reported broader economic unrest that includes a sharp drop in housing starts, weakening manufacturing sentiment, and growing uncertainty that is tied to newly imposed tariffs on US imports. Industrial production in the US slipped 0.3% in March after three consecutive monthly gains, with the decline largely driven by a sharp drop in utility output amid unseasonably warm weather. While the broader industrial sector faltered, manufacturing and mining managed modest gains ahead of the widely anticipated tariff announcements on April 2. Overall for plastics processors and chemical manufacturers, the picture was mixed. Within manufacturing, aerospace, motor vehicles, electronics, and apparel posted strong output increases. However, these were undercut by notable declines in wood products, petroleum refining, and textiles. Industrial production trends On a year-over-year basis, overall industrial production rose 1.3%, though capacity utilization edged down 0.4 points to 77.8% — exactly where it stood one year ago. Total industrial capacity has grown by 1.3% over that same period. Chemical output continued to climb, with the Federal Reserve’s index for the sector rising 0.2% in March to reach its highest level since July 2018. Gains in agricultural chemicals, coatings, synthetic rubber, manufactured fibers, and other specialties outweighed declines in plastic resins, inorganic chemicals, and consumer products. Organic chemicals held steady. Year-over-year, chemical production was up 5.8%, and capacity utilization for the sector rose to 83.1%. However, it's important to note that capacity figures now reflect revised methodology from the Fed, making comparisons with earlier data inconsistent. Despite the sector's resilience, regional indicators point to softening ahead. Manufacturing conditions in New York and Philadelphia contracted further in April, with the Empire State’s headline index remaining in negative territory and the Philadelphia Fed’s measure plunging to a two-year low of -26.4. Both regions reported falling new orders and growing concern about future conditions. Housing data spark worry Housing data also added to concerns. March housing starts dropped 11.4%, driven by a 14.2% decline in single-family construction — a sector with significant implications for demand in plastics-intensive applications like piping, insulation, and exterior cladding. Regional weakness was concentrated in the South and West, although the Northeast and Midwest posted gains. Building permits, a leading indicator of future construction activity, rose 1.6%, suggesting some forward momentum, but the gain was fueled by multifamily projects. Single-family permits continued to decline. Consumer activity provided a rare bright spot in March, with retail and food service sales jumping 1.4%, according to the report. Analysts attribute this surge to consumers pulling forward purchases in anticipation of higher prices due to tariffs. Auto dealers saw sales rise more than 5%, while restaurants, sporting goods stores, and home improvement retailers also posted solid gains. Compared to a year ago, the ACC noted that retail sales were up 4.6%, despite ongoing weakness in furniture and home furnishings. Business inventories remained on the rise, climbing 0.2% in February. Sales, however, rose even faster — up 1.2% — causing the inventories-to-sales ratio to dip slightly from 1.36 to 1.35. For plastics suppliers and converters managing raw material and finished goods inventories, this shift may offer some temporary breathing room. Trade pressures continued to evolve in March, with import prices slipping 0.1% ahead of the tariff hikes. Fuel prices led the decline, while nonfuel imports saw a slight uptick. Export prices remained flat for the month, but have gained 2.4% over the past year. In the chemical sector specifically, import prices have now fallen for three straight months, down 1.3% year-over-year, while export prices rose 3.0% in the same timeframe. Consumer spending to moderate Consumer spending is also expected to moderate, while business investment is likely to slow to 1.7% growth in both 2025 and 2026, according to the ACC. Housing starts, another plastics-relevant market, are forecast to remain flat through 2025 before inching up slightly in 2026. Vehicle sales — a major demand driver for plastics — are expected to slide to 15.5 million units in 2025 before edging up again the following year. Labor market dynamics are shifting as well. The unemployment rate is projected to rise to 4.3% in 2025 and 4.5% in 2026 as the economy softens and job growth slows, the report indicated. Inflation, which had shown signs of easing, is now expected to accelerate again due to cost pressures stemming from tariffs, with consumer prices forecast to rise 3.1% in 2025 before cooling to 2.7% in 2026. Commodities and energy markets continue to react to global developments. Oil prices increased on news of sanctions targeting Chinese imports of Iranian oil and Iraq’s pledge to cut exports. US natural gas prices, by contrast, declined due to warmer temperatures. The oil and gas rig count dropped by eight to 577. For the plastics and chemical sectors, volatility in energy prices — and feedstock costs — remains a key concern. Railcar data provided a modest silver lining: Chemical loadings rose 2.3% year-over-year on a 13-week moving average and have increased in eight of the last 13 weeks. This could indicate that, at least for now, demand for chemical intermediates and finished plastics continues to hold up. As the second quarter unfolds under the weight of trade uncertainty and shifting consumer dynamics, plastics producers and processors are navigating a market marked by resilience in some segments and emerging risk in others. Strategic planning, inventory management, and close tracking of regulatory developments will be critical in weathering what is shaping up to be a volatile year.

ThermoFab, a supplier of heavy gauge plastic enclosures and related single use components for the medtech and other regulated industries, reports that it has acquired key reaction injection molding (RIM) assets from Mearthane Products Corp. All RIM components will be manufactured in ThermoFab’s USMCA-compliant Mexicali facility, allowing for efficient delivery throughout North America with no tariffs. This strategic investment significantly enhances ThermoFab’s RIM molding capacity, improving production efficiency and flexibility in manufacturing complex, high-performance enclosures, the company said in the announcement. Mearthane Products Corp., based in Apex, NC, is specialized in the development and manufacture of advanced polyurethane products. Supporting production of intricate, lightweight molded parts The newly acquired assets include multiple custom-built hydraulic down-stroke molding presses that can accommodate component sizes from 36 x 48 to 60 x 78 inches, with pressures up to 8,000 PSI. The machines are equipped with programmable logic controllers (PLCs), precision mixing heads, and advanced hydraulic systems, enabling the production of impact-resistant large, intricate, and lightweight molded components. The acquisition also includes advanced RIM dispensing systems with dual pressurized tank assemblies, high-performance temperature controllers, and integrated mixing technologies. The systems enhance material consistency, reduce cycle times, and allow for the processing of a range of polyurethane formulations — including high-impact structural foams and elastomers — for medical, industrial, and defense applications, said ThermoFab. The benefits of ThermoFab’s expanded RIM capabilities include: Expanded press sizes that accommodate larger and more intricate designs, suitable for medical device enclosures and robotics components. Enhanced material versatility, as high-performance polyurethane formulations provide superior strength, lightweight properties, and impact resistance. Faster cycle times and optimized material flow, resulting in improved lead times and reduced production costs. Seamless integration of RIM, thermoforming, injection molding, and CNC machining under one roof. Tariff-free production in new Mexican facility The integration of these assets into its new 50,000-square-foot Mexicali facility enables cost-effective nearshore manufacturing with enhanced capabilities and faster turnaround times, the company said. All RIM components produced in Mexicali are fully USMCA-compliant and exempt from tariffs, offering a significant advantage for North American customers, added ThermoFab. Applications of the technology cited by the company include surgical robotics, organ transport devices, genetic sequencing devices, people scanning technologies, autonomous robots, and information systems. ThermoFab said that its capabilities encompass the entire production lifecycle, from design and initial prototyping to full-scale production and assembly. Shirley, MA–based ThermoFab is a subsidiary of the Producto Group, a portfolio company of Culper Capital Partners. A contract manufacturer and supplier of precision tooling and components for the life sciences, semiconductor, aerospace, and defense sectors, Producto acquired ThermoFab in 2022.

Amcor has completed construction of its advanced coating facility in Selangor, Malaysia, less than a year after it opened a new innovation center in Europe and announced a merger with Berry Global Group Inc. The advanced coating facility marks a significant milestone for the company and the region, as the company noted it is the first in Asia to feature state-of-the-art air knife coating technology dedicated to healthcare packaging. The facility is an expansion of Amcor’s existing healthcare packaging plant in Selangor, creating an integrated manufacturing campus. With the addition, Amcor said it becomes the first company in Asia capable of producing both top and bottom substrates for medical device packaging at a single site. Company officials say the development enhances supply chain resilience and shortens lead times for customers across the region, while also setting a new benchmark for production standards. Outfitted with advanced systems including water-based coating, online inspection, and the new air knife technology, the facility is designed for precision and efficiency. The air knife system uses high-speed air streams to apply coatings evenly, improving product consistency and reducing material waste. Commitment to customers Chris Kenneally, president of Amcor Flexibles Asia Pacific, said the company’s investment in this new facility reflects its unwavering commitment to support customers across the Asia Pacific region. “By introducing advanced coating technology and boosting local production capacity, we are better positioned to meet the growing regional demand for sterile, reliable packaging and to offer our customers greater flexibility and security,” he said. Virginie Maes, vice president of global healthcare for Amcor, pointed out that by producing its industry-leading global product platform locally, it brings the company closer to its customers, enhancing supply security and flexibility. “By investing in advanced coating technologies and expanding our regional capabilities, we are not only addressing the growing demand for high-performance healthcare packaging but also reinforcing our promise to deliver a consistent and innovative value proposition to our customers worldwide,” she said.  This new facility is part of Amcor's broader commitment to expanding its healthcare capabilities in the Asia Pacific region, according to the company, which noted recent initiatives include the acquisition of healthcare packaging company MDK in China, the establishment of a grid lacquer paper unit in India, and the construction of a co-extrusion blown film and printing plant in Singapore. European innovation center open Amcor in 2024 opened a new Amcor Innovation Center Europe in Ghent, Belgium, which joins existing centers in the US, South America, and Asia Pacific markets. The facility adds approximately 6,000 square meters to the Amcor Ghent campus to include meeting space, offices, an R&D laboratory/development area, and warehousing space. The facility includes a material science center, consumer engagement center, eCommerce lab, and packaging and recycling test center.  Amcor has pledged to develop all its packaging to be recyclable, compostable, or reusable by 2025 and to increase its use of recycled materials significantly. In line with that commitment, the new facility is designed and built according to BREEAM sustainability certification standards. The new facility represents a "significant investment toward more sustainable, circular, and innovative packaging," according to Michael Zacka, president of Amcor Flexibles Europe, Middle East, and Africa. It includes multiple technologies and equipment spanning R&D, film extrusion processes, and packaging/filling operations, and services that follow the company's collaborative approach, called Catalyst, encompassing broader market, consumer, and sustainability needs. Merger nears close Amcor continues to move forward with its merger with Berry Global.  Last month, the companies received US antitrust clearance for the combination. As a result, the $8.4 million deal remains on track to close in the middle of calendar year 2025. The all-stock acquisition of Berry by Amcor is expected to bring $650 million in annual cost benefits and other synergies in three years. The new business will leverage more than 400 production facilities to serve customers in more than 140 countries.

The Liberty Justice Center is suing the Trump administration’s authority to unilaterally issue across-the-board tariffs without congressional approval on behalf of five owner-operated businesses, including Genova Pipe, a Salt Lake City–based extruder of ABS pipe. The company uses imported resin from South Korea and Taiwan, and the tariffs have increased raw material costs at its Washington state factory, which primarily exports to Canada. Misuse of emergency act, plaintiffs claim Filed on April 14 in the US Court of International Trade, the lawsuit challenges the use of the International Emergency Economic Powers Act (IEEPA) to justify the “Liberation Day” tariffs announced by Trump on April 2, and then suddenly paused for 90 days a few days later, as well as tariffs on Mexico, Canada, and China. “Under that law, the president may invoke emergency economic powers only after declaring a national emergency in response to an ‘unusual and extraordinary threat’ to national security, foreign policy, or the US economy originating outside of the United States,” explains a press release on the Liberty Justice Center website. The lawsuit argues that the justification — a trade deficit in goods — is neither an emergency nor an unusual or extraordinary threat. “Trade deficits have existed for decades, and do not constitute a national emergency or threat to security. Moreover, the administration imposed tariffs even on countries with which the US does not have a trade deficit, further undermining the administration’s justification,” notes the release. The IEEPA does not authorize the president to impose across-the-board tariffs — it does not even authorize tariffs at all — and even if the IEEPA did extend such power to the president, that would be an unconstitutional delegation of Congress’s power to impose tariffs, according to the center. No domestic sourcing alternatives available to Genova Pipe The tariffs are devastating small businesses across the country, according to the Liberty Justice Center. Genova Pipe, which is a party to the lawsuit, operates seven manufacturing facilities across the United States. “With limited domestic sources, we rely on imports to meet our production needs,” said Andrew Reese, president of Genova Pipe, in a prepared statement. “The newly imposed tariffs are increasing our raw material costs and hindering our ability to compete in the export market.”  Genova Pipe cannot domestically source the raw materials, including plastic resins, and manufacturing equipment it needs to produce its American-made plastic pipe, conduits, and fittings, the company said in the filing. There are only two US producers of ABS resin suitable for the products that Genova makes, and one of them is shutting down and the other is unavailable to supply the company. “With over 75% of global ABS resin production concentrated in Northeast Asia, Genova Pipe is dependent on imports to continue its manufacturing operations,” said the filing. “The tariffs will directly increase the cost of raw materials, manufacturing equipment, and resale goods imported from abroad by Genova Pipe. And its Canadian customers may opt for local suppliers who are not subject to the tariffs, potentially resulting in a large loss of revenue. The other businesses taking part in the suit are VOS Selections, a New York–based importer and distributor of alcoholic beverages; FishUSA, an e-tailer specialized in fishing tackle and related gear; MicroKits, a maker of educational electronic kits and musical instruments in Charlottesville, VA; and Terry Precision Cycling, a Vermont-based brand of women’s cycling apparel.