Positive Brits

According to data published by the British Plastics Federation (the sector association that embraces the entire plastics pipeline, from raw materials to processing, recycling and machinery production), participants in its latest six-month survey appear to be very optimistic about the prospects for a growth of turnover in the next 12 months. Of those questioned, 71% confirm that prices and the market availability of raw materials remain stable, allowing a reduction in production costs, and believe that they should be looking at an increase in sales and also a better profit margin. These feelings are rather different from those recorded at the start of the year, when only 56% of respondents envisaged an increase in turnover.
Of those now expecting to see an increase in turnover, 23% think it will be between 2 and 5%, 21% think that it will be between 6 and 10%, 16% between 11 and 20%, while 9% feel that the increase could exceed 21%. Nearly a quarter (24%) expect the situation to remain stable, while only 5% fear that sales will drop in the next 12 months. Moulders, polymer producers and recyclers were found to be the most optimistic categories. As regards profit margins, 48% of the interviewees do not expect to see any change compared with recent months, while 45% expect their profit margins to increase by an average of 6 to 10%, and 7% expect to see a drop.
Also on the increase is the proportion of operators who do not expect to reduce their workforce, up to 53% from the 45% recorded in the last survey. Instead, 35% expect to increase their workforce. Exports are set to increase, according to 61% of respondents, who are trusting mainly in the emerging markets outside Europe. The market availability of raw materials is not perceived as a problem by most (84%) of those questioned. On the price front, 49% expect prices to remain stable, 26% expect them to increase, while 25% think they will fall.
Finally, 47% of the respondents are expecting to invest part of their income in the purchase of plants and equipment in the coming months, while 31% see hefty investments in plastic processing technologies as essential. Moulders and producers of film made from composite materials are the groups that emphasised these needs most strongly.