UK plastics sector targets efficiency and skills, expects upturn

London – Most UK plastics manufacturers are expecting a significant improvement in business and market conditions this year and are targeting new efficiency and staff training in expectation of the upturn, according to the British Plastics Federation’s January Business Conditions’ Survey.

Among its key findings, 70% of survey respondents forecast higher turnover in 2010, mostly in the range 2-10%, compared to a decline of 15-40% last year. Some 44% expected export sales to increase in 2010, mostly in the 5-20% range, due to a more favourable exchange rate; some recovery in overseas markets and new business.

Meanwhile, top company priorities for 2010 the highest were: finding new business; efficiency; preparing for the upturn and staff training. Staffing levels will stay unchanged in 2010, expected 59% of respondents. Last year many had reduced staff levels and introduced short time working. 31% of respondents planned to increase their staff, most of them by 2-15%.

Interestingly most respondents said obtaining bank finance was not a problem, though over a third of companies complained of high charges and obtaining trade credit insurance continues to be a problem for 56% of respondents.

Alongside the survey, members of the BPF Council pointed out to Bank of England and Government officials how the German government’s support for flexible short time working had helped stabilise business there and keep skilled workers ready for a recovery. In the UK many workers have been made redundant.

“Although the loss of major firms overseas e.g. Dyson, Black & Decker is unlikely to be reversed, toolmaking is returning to the UK and there is in decision making on manufacturing location a greater awareness of: delivery time; supply chain and carbon footprint and the cost of capital on the high seas which could benefit the UK,” said the BPF.

The President of the British Plastics Federation Paul Jukes also commented: “Meeting at the Bank was an important opportunity for the BPF to tell the Bank and BIS officials the experiences of the plastic industry businesses, who are key suppliers into all sectors of the Economy. We are by no means out of the recession. It will be a slow and arduous climb to recovery”