Plastics Processing Business Index Contracts Further
All components dip as index hits low point of 2023.
The Gardner Business Index (GBI): Plastics Processing closed July at 44.3, the lowest in 2023. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
All six components contracted in July, marking the first time that’s happened since February 2020. Backlog, new orders and production contracted in tightly parallel form, which is not surprising given the inherent relationships between those metrics.
FIG 1 GBI: Plastics Processing activity contracted in July for both total plastics processing and custom processing in particular.
Exports added another month of “same,” remaining the only component contracting for months without falling victim to accelerating rates (or enjoying slowed rates).
GBI’s “future business” metric is a sentiment question that solicits a 12-month business outlook. It is not part of the GBI calculation. In July, it showed an uptick, suggesting more processors have “better” than “worse” business expectations for the next 12 months.
Overall business activity for custom plastics processing contracted faster again in July, dropping just over 2 points.
FIG 2 Backlogs, new orders, and production contracted in tightly parallel form in July.
ABOUT THE AUTHOR: Jan Schafer is director of market research for Gardner Business Media, parent company of both Plastics Technology magazine and Gardner Intelligence. She has led research and analysis in several industries for over 30 years. She has a BA in psychology from Purdue University and MBA from Indiana University. She credits Procter & Gamble for 15 years of the best business education. Contact: (513) 527-8952; jschafer@gardnerweb.com.
Related Content
Processing Activity Contracts More Slowly in January
Despite contracting again in January, plastics processing activity rebounded a bit from a rather significant drop in December.
Read MorePlastics Processing’s Ups and Downs
Overall index dips, but custom processors hold steady. Employment up, backlogs down.
Read MorePlastics Processing Continued Contraction in April
Despite some index components accelerating and others leveling off, April spelled contraction for overall plastics processing activity.
Read MorePlastics Processing Activity Drops in November
The drop in plastics activity appears to be driven by a return to accelerated contraction for three closely connected components — new orders, production and backlog.
Read MoreRead Next
For PLASTICS' CEO Seaholm, NPE to Shine Light on Sustainability Successes
With advocacy, communication and sustainability as three main pillars, Seaholm leads a trade association to NPE that ‘is more active today than we have ever been.’
Read MoreBeyond Prototypes: 8 Ways the Plastics Industry Is Using 3D Printing
Plastics processors are finding applications for 3D printing around the plant and across the supply chain. Here are 8 examples to look for at NPE2024.
Read More