Respondents to the latest half yearly Business Conditions Survey carried out by the British Plastics Federation are signalling an increase in business confidence in the plastics sector. Some two-thirds of the companies (on a total of 96) are expecting sales turnover to increase in the next twelve months, up from 55% in January with exports expected to stabilise, and 41% are anticipating increased profitability, up from 36%.
In explaining their optimism companies cited lower raw material costs, tighter cost control, more efficiency and less waste during production processes. Many companies are also reporting significant productivity gains in the period 2007-2013. Machinery and ancillary equipment manufacturers are amongst the most confident.
Some 56% of those responding said that their productivity (units per hours worked) has increased by over 5% since 2007. Polymer distributors and recyclers were particularly noticeable for large gains. Regarding the work force, 28% of respondents were expecting to increase staff by the end of the year, while 51% expected no change in their staffing levels.
The survey also touched on issues of a more general nature but having an impact on the British plastics market, although indirectly. Looking ahead to the potential economic effects of possible alternative political structures, only 2% of respondents said they wanted to see an independent Scotland and 54% said that Scotland should remain in the United Kingdom. 61% of respondents believed that the UK should remain in the EU with 11% wanting to see an exit, but 74% strongly rejected the euro replacing the pound sterling.