| BPF: Continuing optimism in UK plastics |
By: Rebecca Hubbard
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Posted: Wednesday, February 15, 2012 4:37 pm
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The results of the British Plastic Federation’s January Business Conditions Survey have been published, with 90 member companies participating drawn from all parts of the UK plastics industry.
Peter Davis, Director-General of the BPF said of the survey: “The plastics industry is optimistic about 2012, but confidence is a little reduced compared to previous surveys. This is hardly surprising given the continuing Eurozone turmoil and poor consumer demand.”
According to the survey, 56 per cent of respondents are forecasting an increase in UK sales turnover compared to 66 per cent in the June 2011 survey. This, says the BPF, mirrors the uncertain outlook for consumer spending, retail sales and jobs as well as continuing sluggishness in construction markets.
Of those predicting an increase, 12 per cent expect a turnover increase of two to five per cent, 22 per cent forecast an increase of six to 10 per cent, 13 per cent are anticipating rises of between 11 and 20 per cent and 9 per cent expect rises of over 21 per cent.
Meanwhile, 31 per cent expect no growth and 5.5 per cent anticipate a decrease. The most positive sectors in the survey were found to be moulders, polymer distributors and compounders and recyclers.
52 per cent of respondents expect export sales to remain the same in 2012 compared to 39 per cent in the same survey a year ago, whilst 38 per cent expect export sales to increase and 7 per cent predict a decrease.
Also, 39 per cent of respondents expect an increase in 2012 profitability, which is up on 29 per cent on the June survey. According to the BPF, companies spoke of increased volume and efficiencies, a restoration of profit margins, improved cost management and increased productivity.
The BPF found when carrying out the survey that level of investment was a key question. 56 per cent of the respondents had capital investment plans for this year, down on the survey a year ago when 64 per cent did. The most positive companies planning investments are moulders and pipe manufacturers as well as packaging, composites and recycling companies.
44 per cent were not planning any 2012 capital investments. |
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