Plastics Industry Increasingly Optimistic

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 companies 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%.

Supporting all aspects of UK manufacturing , the Federation's membership covers suppliers to the automotive, aerospace,construction, electrical, electronic and healthcare sectors as well as providing packaging for the retail and distribution industries.Ninety-six companies participated in the survey.

In explaining their optimism companies cited lower raw material costs; tighter cost control; more efficiency; less waste. Many companies are also reporting significant productivity gains in the period 2007-2013.

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 .Overwhelming market pressure since 2007 was cited as the main factor affecting productivity by 51% of respondents, followed by changes to product mix, and changes to a company’s manufacturing techniques. Bottom of the list was availability of skilled staff and the impact of regulations.

Perhaps consistent with this there was an increase in the number of companies expecting no change in their staffing  levels over the next twelve months. This stood at 51% up from 47% in the January 2013 survey, 28% of respondents were expecting to increase staff, down from 31% six months ago.

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. 72% believed that the UK should try to secure improved terms for its EU membership.

Peter Davis,the BPF's Director General said: "Broadly our members want to stay in the EU but they strongly rejected the Euro replacing the pound sterling with 74% saying 'no'."

See the full survey attached below.

ENDS

For all media enquiries, BPF logos and images, please contact Laura Hindley, Industrial Issues & Communications Executive on 0207 457 5043 or email [email protected]

Notes for editors:

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.