Companies in the plastics industry are having difficulties obtaining raw materials and additives and expect no change in profitability in the coming year, a survey by the British Plastics Federation (BPF) has found.
The BPF’s Business Conditions Survey for the UK Plastics Industry found that although 66% of the survey’s 100 respondents were predicting an increase in sales turnover of 2- 21%, 45% of respondents predicted no change in profitability in the coming year.
The survey also found that 12% of respondents expected a decrease in profitability, while 55% reported difficulties in securing supplies of plastics raw materials and additives, including PET, HDPE and acrylics.
The BPF council also held a meeting last week at the Bank of England to address these issues with bank officials in regards to the impact of rising production costs, public sector cuts and global economic stability.
BPF President Phillip Watkins said: “This was a tremendous opportunity for the industry to brief the Bank on the reality of industrial conditions. With the broad spectrum of business sectors supplied by the plastics industry, the fortunes of our members are an accurate barometer of the state of UK manufacturing as a whole.”