Plastics converters in Europe are fighting a tide of competition, and innovation and efficiency have been identified as the factors that will ensure success.

Competitiion
The European Plastic Converters Association (EuPC) claims many European companies are under pressure from the up and coming Asian and Turkish markets, while fresh competition from North Africa and the Middle East is adding more players to the game.
Moreover, some converters have cited red tape within the EU as an obstacle for their business, particularly mid-sized companies in Germany, France and Benelux, while a labour shortage is dragging down productivity.
EuPC brought these sentiments to light as a result of its Competitiveness of the European Plastics Converting Industry study, conducted by Dr Wieselhuber & Partner (W&P) in collaboration with the EuPC. The results of the study provide concrete suggestions for companies striving to improve competitiveness and securing their future.
More than 300 companies in the plastics converting industry in 19 European countries participated in the survey that was conducted for the study. The survey helped to analyse issues such as competitive environment, legislative conditions, the supply situation and relevant sales markets.
The results demonstrate that domestic laws and EU guidelines such as REACH or Food Contact Materials has led to bureaucratic overheads and increased costs for European converters, presenting a barrier for business. These impediments place European companies at a distinct disadvantage compared to the global competition.
"Small and mid-sized companies have pretty much maxed out improving efficiency as a way to compensate for these massive cost increases," explained Dr Stephan Hundertmark, author of the study and industry expert at W&P. "This makes it more difficult for them to invest in innovative and customer specific product solutions - once a pillar of competitive advantage."
At this time the European plastics converting industry is still benefiting from close networking with polymer manufacturers regarding innovative materials as well as from partnerships with suppliers in machine and process technology. In this context, European plastics converters continue to be a key driver of innovation in customer industries.
Despite future challenges, European plastics converters are convinced they will continue to maintain an edge in the international market – provided they address customer needs with innovative solutions and maintain efficient processes.
Based on the outcome of the survey as well as complementary interviews with experts, industry specialists at W&P have identified the strategic levers that in the long run will ensure competitiveness in Europe’s plastics converting industry: Asset investments with a focus on replacement, efficiency and capacity expansion; Constant striving for efficiency; Focus on innovation and quality; Customer proximity as a competitive advantage; Growth through business expansion within the EU; and Review of the corporate strategy if business evolution cannot cope with market revolution.