July 14-The British Plastics Federation's (BPF) Business Conditions Survey 2010 reveals growing industry confidence in a post-recession recovery, with 73% of all respondents forecasting an increase in UK sales turnover in the next 12 months.
Conducted annually by the BPF, the Business Conditions Survey is completed by the federation's member companies. The survey looks at turnover, staffing, finance, capital investment and industry regulation issues.
This year's findings show a positive outlook for the UK plastics industry with many companies expecting business profits to rise considerably in the next few months. Of the 73% of businesses expecting an increase in UK sales turnover, 24% are expecting a 2-5% increase, 29% a 6-10% increase and 20% an 11% or greater increase.
The move towards workforce expansion is further evidence of recession recovery, according to the BPF, with 46% of companies expecting to increase staff and only 5% stating that they would reduce staff in the next 12 months. This is a substantial change from the Business Conditions Survey June 2009 in which 59% of respondents planned to reduce staff.
Despite the positive outlook for most sectors, the construction and building products sector has been badly hit by the recession with most respondents working in this area predicting no increase in UK sales turnover.
"The survey clearly shows increasing confidence in the plastics industry that a recovery is taking place. But construction products are still rather depressed and there are concerns over raw material price increases and the effect of Government cut backs on private sector customers," said Peter Davis, director general of the BPF.
The survey results show a healthy level of planned capital investment with 61% of respondents planning it during the next 12 months. There is a particularly strong emphasis on this from moulders, recyclers, and additives and masterbatch suppliers. While 34% of respondents stated that an "upgrade" or "expansion" as the reasons for capital investment, 22% of respondents highlighted energy efficiency as a key driver.
"It's particularly encouraging that over 60% of companies are planning capital investments. This is essential to remain competitive and efficient," said Davis. "It's good to see that many of the investments are to secure greater energy efficiency. This is important in meeting the energy reduction targets in the BPF Climate Change Agreement."
According to respondents, a growing area of concern is the number of costly regulations. At the top of the list 57% of respondents cited Health and Safety regulations as time wasting and a senseless set of rules and policies .
Our companies have listed a litany of time wasting regulations. We shall forward this to the deregulation minister, Mark Prisk MP. The new government is keen to hear suggestions from business on what regulations to dump or simplify, added Davis.
Conducted annually by the BPF, the Business Conditions Survey is completed by the federation's member companies. The survey looks at turnover, staffing, finance, capital investment and industry regulation issues.
This year's findings show a positive outlook for the UK plastics industry with many companies expecting business profits to rise considerably in the next few months. Of the 73% of businesses expecting an increase in UK sales turnover, 24% are expecting a 2-5% increase, 29% a 6-10% increase and 20% an 11% or greater increase.
The move towards workforce expansion is further evidence of recession recovery, according to the BPF, with 46% of companies expecting to increase staff and only 5% stating that they would reduce staff in the next 12 months. This is a substantial change from the Business Conditions Survey June 2009 in which 59% of respondents planned to reduce staff.
Despite the positive outlook for most sectors, the construction and building products sector has been badly hit by the recession with most respondents working in this area predicting no increase in UK sales turnover.
"The survey clearly shows increasing confidence in the plastics industry that a recovery is taking place. But construction products are still rather depressed and there are concerns over raw material price increases and the effect of Government cut backs on private sector customers," said Peter Davis, director general of the BPF.
The survey results show a healthy level of planned capital investment with 61% of respondents planning it during the next 12 months. There is a particularly strong emphasis on this from moulders, recyclers, and additives and masterbatch suppliers. While 34% of respondents stated that an "upgrade" or "expansion" as the reasons for capital investment, 22% of respondents highlighted energy efficiency as a key driver.
"It's particularly encouraging that over 60% of companies are planning capital investments. This is essential to remain competitive and efficient," said Davis. "It's good to see that many of the investments are to secure greater energy efficiency. This is important in meeting the energy reduction targets in the BPF Climate Change Agreement."
According to respondents, a growing area of concern is the number of costly regulations. At the top of the list 57% of respondents cited Health and Safety regulations as time wasting and a senseless set of rules and policies .
Our companies have listed a litany of time wasting regulations. We shall forward this to the deregulation minister, Mark Prisk MP. The new government is keen to hear suggestions from business on what regulations to dump or simplify, added Davis.
