Trade Credit Insurance a Severe Problem for Plastics Industry Reveals BPF Survey

Obtaining Credit Insurance has been highlighted as a serious problem for the plastics industry by the recent British Plastics Federation (BPF) Business Conditions Survey. Furthermore, the situation appears to be worsening with a staggering 79% of respondents experiencing problems obtaining such insurance compared to 48% in January.

Peter Davis, Director-General, BPF says “the latest survey has really highlighted the severity of credit insurance problem facing the industry. This is not only affecting plastics companies now, but it also has the potential to seriously blunt the impact of the recovery”.

The survey also revealed that the industry appears to be bouncing along the bottom of a deep trough, with 44% of plastics companies expecting UK Sales Turnover to remain the same over the next 12 months and 35% expected a modest increase in the 5-10% range from a low base. Results showed that there may still be job cuts to come, with 37% of respondents revealing they expect to reduce staff over the next 12 months. Extrapolating the trend this could mean a further 6,800 job losses for the industry.

Davis says “the survey does indicate some increased confidence in UK and export sales, but certainly no “green shoots” and, like other manufacturing sectors, there are more job losses to come.

The companies surveyed were also fearful of increases in energy and raw material prices in the next 12 months which could potentially serve to stifle recovery.

Respondents were skeptical about Government recession initiatives and few had used or found them effective. Aside from the Car Scrappage Scheme and Enterprise Finance Guarantee Scheme awareness of the available initiatives was low.

The BPF will send the survey results to Business, Innovation and Skills Department Ministers and the Bank of England. 

ENDS

For further information on this press release, please contact Anthony Roberts, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5043, fax 020 7457 5045, email: [email protected]

Notes for editors:

1) 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.