Optimism grows in plastics industry, says BPF survey
The British Plastics Federation’s (BPF) latest Business Conditions Survey, conducted in January and February, shows the plastics industry to be optimistic about the remainder of 2017.
The survey, taken twice per year, showed that a record number of respondents (78 per cent) predicted an increase in sales turnover over the next 12 months, with only seven per cent predicting a decrease. Similarly, in terms of export sales, 63 per cent were predicting an increase —higher than just 28 per cent a year ago. In both cases the exchange rate was mentioned as a significant reason for this upswing.
Whilst the survey showed slightly more muted predictions on profitability, it still indicated significant confidence from the industry, with 34 per cent predicting an increase. The previous survey, carried out immediately after the EU referendum vote, showed just 20 per cent of companies to be predicting an increase.
The plastics industry also displayed bullish predictions in terms of recruitment, with 44 per cent looking to increase staffing levels over the course of 2017. However, a record 65 per cent of companies said they were having difficulties recruiting.
Philip Law, BPF Director General, said: “We have been asking companies if they have been experiencing difficulty recruiting since 2012. The number has always been worryingly high and has averaged around 40 per cent for the past four years. At 65 per cent, this is the highest we have seen by quite some margin.”
When asked about investment intentions, 31 per cent said they plan to invest significantly, which is up slightly from the previous survey. This shows that, despite uncertainty and the increased cost of investment caused by currency exchange rates, almost a third of the plastics industry is still looking to invest heavily in future endeavours, while a further 56 per cent claim they will ‘invest a little’.
The Business Conditions Survey was conducted in January and February 2017 and was completed by 102 member firms.