BPF Survey Shows Plastics Industry Optimistic for 2017

The British Plastics Federation’s (BPF) latest Business Conditions Survey, which was conducted in January and February, shows the plastics industry to be optimistic about the next 12 months.

The survey, which is conducted twice per year, showed that a record number of respondents (78%) were predicting an increase in sales turnover over the next 12 months, with only 7% predicting a decrease. Similarly, in terms of export sales, 63% were predicting an increase — undeniably higher than just 28% 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% predicting an increase. The previous survey, carried out immediately after the EU referendum vote, showed just 20% of companies to be predicting an increase.

The plastics industry also displayed bullish predictions in terms of recruitment, with 44% looking to increase staffing levels over the course of 2017. However, a record 65% of companies stated they were having difficulties recruiting.

BPF Director General Philip Law comments:

"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% for the past four years. At 65%, this is the highest we have seen by quite some margin."

When asked about investment intentions, 31% stated that 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% claim they will ‘invest a little’.

Philip Law continues:

"The previous survey was carried out immediately following the EU referendum vote and the picture it painted was rather pessimistic. It could be argued that it showed a knee-jerk reaction as people reeled from the uncertain ramifications of Brexit. What is certain though, is that our latest survey highlights a far more optimistic outlook, despite the industry being little wiser regarding the impact leaving the EU will have. This optimism is to be welcomed, as we must all remain positive as we enter this new era, full of fresh challenges and opportunities."

The BPF’s latest Business Conditions Survey was conducted in January and February 2017 and was completed by 102 member firms.