European Plastics Industry Sees Gradual Upturn
Business is looking up for the European plastics industry, says the trade association PlasticsEurope. In 2014, the association said plastics production continued to recover from the slump that dogged the sector from 2008 to 2012. Output rose 1.5% on the back of business improvements in customers industries such as automotive, electrical appliances and construction.
Parallel to production, plastic processing also continued upward in 2014, industry figures show.
The positive growth trend is expected to continue in 2015, although slightly less dynamically than a year earlier. The expected 1% rise in output will still be "far below pre-crisis levels," PlasticsEurope noted.
"Due to its knock-on effect on other key areas of the economy, the plastics industry is a key contributor to the reindustrialization of Europe," said PlasticsEurope executive director Karl- H. Foerster. "For every job created in the plastics sector, almost three additional jobs are created in the wider economy."
A query of the association's member base, looking at economic trends, showed a mixed picture of what the European plastic industry can expect in 2015. Asked about the outlook for the year, around 10% said they expected growth to exceed 5%, while about half predicted growth rates of up to 5%. Just under 40% expected no growth at all.Asked about the medium term, industry players' forecast showed a more diversified picture. The same number of companies thought growth would top 5%, while more than 60% said improvement would be up to 5%. A good 20% expected no growth and around 5% foresaw negative growth.
Also mid-term, about 40% of PlasticsEurope members said they planned manufacturing investments within Europe, and about 55% planned none. When questioned about investment outside Europe, about 65% said they would build new plants abroad, and 25% said they would not. Another 5% were not sure.
