Global trade issues a worry for Europe’s plastics industry

Most European regions and sectors in the plastics industry have a cautious outlook towards the future, with a majority of companies concerned about the impacts from global trade conflicts on their business, according to a new survey by Plastics Information Europe.

PIE surveyed more than 200 participants from the plastics industry on business performance, outlooks, and concerns.

Almost 30 per cent of those surveyed expect company performance to worsen in the second half of 2019, while 22 per cent rated business performance as worst in the first half compared to the second half.

By location, companies in the Nordic region fared better, with more than 50 per cent reporting better in H1 2019 compared to H2 2018.

The regions with the largest share rating business as worse in a half-year comparison were Spain, with 35 per cent, and German-speaking Europe, with 32 per cent.

Across sector, plastics processors performed the best, with almost half rating business as better.

Looking ahead, 29 per cent expect business in H2 2019 to be worse than in H1, with 44 per cent foreseeing it as staying the same.

Businesses in the UK, with 43 per cent, and France, with 37 per cent, make up the highest shares having an optimistic outlook in H2 2019.

The effect of global trade conflicts on business were a significant concern for the majority of those surveyed, with 71 per cent viewed trade conflicts as negatively impacting business performance.

Those in distribution and compounding had the largest share seeing negative impacts from trade conflicts, with 89 per cent, followed by brand owners with 83 per cent.

Around 70 per cent of plastics processors were seeing negative impacts on business performance.

This year’s crisis within the automotive industry also negatively impacted businesses, whether directly or indirectly, for 52 per cent of those surveyed.

Around 40 per cent saw no impact business performance, while the remainder saw positive effects.

In specific regions, German-speaking Europe saw the biggest impact, with around 90 per cent saying business was negatively affected.

Only 22 per cent in the Nordic region witnessed a negative impact from the automotive sector’s downturn, and 16 per cent saw good effects on business.

For 43 per cent of respondents, EU regulations were not expected to negatively impact business.

The remainder had concerns about the ban of single-use plastics (26 per cent), REACH regulations (19 per cent), food-contact legislation (15 per cent), and microplastics regulation (12 per cent).