Amidst obstacles in the global and local economies, Europe’s plastics industry is largely weathering the storm. Around 42 per cent of the companies reported business performance as unchanged in H2 2019 compared to H1, while 31 per cent saw improvement. Even though plastic-related regulations and ‘plastic bashing’ are worrying most European players, a third of companies plan to invest more in 2020.
Plastics Information Europe
Europe’s plastics industry still facing concerns
These results are from the latest questionnaire on business performance conducted by Plastics Information Europe (PIE) in January.
In order to gain insight into the business conditions of Europe’s plastics industry, PIE has surveyed decision makers on business performance, outlook, investments and employment since 2019. The current results are based on data from 193 participating companies.
The regions with the largest share rating business as worse in the second half of 2019 were Italy and GAS. Across sectors, plastics converters fared well compared to many others, with around 39 per cent rating business as better than in the first half of 2019.
The top concern for business performance in 2019 across all respondents was sales volumes, followed by selling prices and material costs. An exception was the Benelux region, where staff recruitment was rated as the number one concern.
Plastics-related regulations are becoming a greater concern, especially in Benelux, France and Italy. Furthermore, the public backlash against plastics is worrying many companies about business performance in 2020. More than 56 per cent did not see an effect on business from the backlash in 2019, while one third witnessed a negative impact.
Plastics Information Europe
Europe’s plastics industry still facing concerns
Almost half of the companies foresee a negative effect on business in 2020 because of the backlash, helped by negative media coverage.
Looking ahead, 45 per cent of respondents expect business in the first half of 2020 to stay the same as in the second half of 2019, with 39 per cent predicting better business. Related to some optimism for upcoming business performance, 33 per cent said their company’s capital investment plans for tangible assets are increasing in the first six months of this year, while more than half said investment plans will stay the same.
