BPF Survey - Continuing Optimism in UK Plastics Industry
Wednesday, 23 February 2011
Published: 23 February 2011
British Plastics Federation (BPF) member firms signalled a buoyant start to the New Year in the Federation's latest Business Conditions Survey published on the 23 February 2011. The majority of the 80 respondents to the Survey were confident of a growth in UK sales turnover over 2011. Whilst this was a lower proportion forecasting an increase than in the June Survey, 64% as against 73%, the proportion signalling increases in turnover of over 11% increased from 20% to 27%.This indicates that the sector’s recovery from its low point in 2008 is being maintained but that gains are slowing and are increasingly focussed in specific market sectors. Sales turnover growth also to some extent masks the transfer of raw material price increases with the percentage increase sales volume growth being one third less than that of sales turnover growth.
The Survey also pointed up a growing business for the exporters of the industry with 53% forecasting an increase in export sales turnover in 2011 as against 46% in June 2010. This could be accounted for by the continuing weakness of sterling against the Euro and the $ dollar but is also indicative of growing widespread interest in global markets.
Following the significant re-staffing which occurred in the sector in 2010 the Survey shows that this trend is set to continue with 34% of respondents indicating they will be recruiting new staff in 2011.Only 6% of firms plan to reduce staffing levels compared with a majority of respondents in the June 2009 Survey when 56% were planning staff cuts.
The Survey showed a continuing growth in capital investment with 64% planning new investments over 2011 up from 61% in June 2010. 65% of investments will be in genuine plant expansion. Encouragingly a quarter of investing respondents were attending to health and safety compliance at a time when the Federation is making a priority of safety through its participation in the Safety in Manufacturing Plastics Strategy (SIMPL).
Nearly half those respondents who were investing (49%) are focussing on energy efficient equipment at a time when ambitious Climate Change Agreement targets have to be met and as energy prices remain a major cost heading. Unsurprisingly 60% cited ‘Energy Supply and Cost’ a major retarding factor on their business and one which puts the UK plastics industry at a competitive disadvantage. 41% elaborated this further and cited ‘Environmental and Carbon Reduction taxes / regulation’ as damaging to their businesses.
ENDS
For further information contact:
Philip Law
Public & Industrial Affairs Director
The British Plastics Federation
6 Bath Place
Rivington Street
London
EC2A 3JE
Tel: 020 7457 5000
Fax: 020 7457 5045
E-Mail: [email protected]
Note to editor
The British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.
.png)
