2016: a record year for German processors

Last year, turnover was up by 3.2% on the 2015 figure (which itself had represented a 1.3% increase on 2014), amounting to a value of 60.8 billion euros (compared with the 59.8 billion recorded in 2015). These figures were released at the general assembly of GKV, the German association of plastics processors, a sector that numbers 2,900 companies with a total workforce of 317,000 people.

Sales on the domestic market amounted to 38.3 billion (+2.8%), while exports were worth 22.5 billion euros (+3.6%), the majority - over 70% - being destined for EU member countries. Underpinning this increase in turnover was a high volume of production, which amounted to 14.1 tons (+3.6%), a total that can be broken down by application areas as follows: 5 million tons for the construction industry (for a turnover of over EUR 19 billion, up by 4.7%), followed, in this order, by packaging (4.3 million tons, worth EUR 14.2 billion, +4.4%), technical items (3.3 million tons, corresponding to a turnover of almost EUR 18 billion, +1.7%), and consumer goods (1.5 million tons, worth EUR 9.6 billion, +2%).

The business survey of member companies conducted by Dirk E. O. Westerheide showed that a good 61% of those interviewed claimed to have seen their business increasing. Instead, 20% reported that business had remained fairly stable, while the remaining 19% had reportedly suffered a dip. The outlook for 2017 - still in terms of turnover - remains basically positive: 57% of German processors seem set to record an improvement, 34% are expecting to record levels in line with those of 2016, and just 9% fear that business will decline.

Although the general picture appears encouraging, companies continue to be concerned about high energy costs and the scarcity of skilled labour. Given this sector’s high reliance on exports, there is also uncertainty linked to the prospect of Brexit and its possible impact on trade: the UK’s withdrawal from the European single market would be very damaging for 4% of the processors interviewed and a disadvantage for 52%, while no repercussions would be felt by the remaining 44%.