BPF Survey shows continuing Plastics Industry optimism for 2013

The BPF Business Conditions Survey published today shows continuing optimism with 55% forecasting an increase in UK Sales turnover and 32% an increase in Export Sales in 2013.  But a minority of companies since the last survey are forecasting lower profitability and reductions in staff.

Peter Davis, BPF’s Director –General said “Our survey attracted a record response from 100 companies, drawn from all parts of the industry.  The Plastics Industry is confident about sales this year and most plan to make investments in plant and equipment”.

This year 55% of companies are forecasting an increase in UK Sales turnover.  This is less optimistic than our June 2012 survey (71%) but Peter Davis said “this may have been influenced by London Olympics optimism”.  20% expected an increase of 2 – 5%; 18% forecast + 6 – 10%; 14% forecast + 11 – 20%.

30% of respondents expected no change, 15% a decrease.

The most positive sectors are: Plastic Pipes, Masterbatch producers and Compounders, Additive Suppliers, Polymer Distributors and Recyclers.

32% of companies expected Export Sales to increase in 2013 whilst 34% expected no change. 6% predicted a decrease, the remainder did not export.

Most firms - 45% - were expecting no change to their Profitability in 2013.  36% were expecting their profitability to increase and mentioned manufacturing efficiencies, cost cutting and benefits from capital expenditure.

19% expected their profit margin to decrease. This is substantially up on our June 2012 survey where 7% expected a decrease.  These respondents mentioned: Euro/£ exchange rate; Asian competition; raw material and energy costs.

Peter Davis said “This shows the heavy external pressures on companies in a tough trading market”.

On Staffing plans for 2013, 47% were forecasting no change whereas 31% were planning to increase staff in 2013.  22% of respondents were planning to reduce staff in 2013.  This is a large increase on the June 2012 survey (12%) and that in January 2012 (12%).

37% of respondents will employ Apprentices in 2013.  In total they will employ 110 with Moulding firms taking 37 and Packaging firms 35.

23% of respondents are not giving their staff a pay increase in 2013.  37% are paying + 1 – 2%; 37% are paying 2 – 3%, the remainder more.

On Skills Needs 64% of companies were not having difficulties recruiting staff; 13% were not recruiting; but 23% were finding it hard to recruit staff.  Particularly hard to find were Technical Managers, followed by Apprentices and Supervisory staff.

Peter Davis said “With an ageing workforce our educational and training system needs to be galvanised to urgently meet these skills shortages”.

Most companies are not having difficulties securing Credit from Banks but 19% complained of high Bank charges.

Processor firms were asked if they process Recycled Polymer excluding sprues.  38% said ‘Yes’, 32% answered ‘No’.  Asked what the main reason was for not processing more recycled polymer the main reasons were: reliability of supply and client specification.

48% of respondents planned to invest a little in plant and equipment this year, whereas 31% will invest significantly.

Masterbatch producers and Compounders, Recyclers, Flexible Foam manufacturers and Moulders were the most positive on investment plans.  21% planned no investments.

ENDS
 
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Notes for editors:

Please find the Business Conditions Survey 2013 document below.

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.