SolidCAM Additive - Upgrade Your Manufacturing
Updated Published

Plastics Processing Activity Near Flat in February

The month proved to not be all dark, cold, and gloomy after all, at least when it comes to processing activity.  

Share

While contracting for the eighth month straight, the rate of contraction of plastics processing activity slowed in February, continuing a trend that began in January. The Gardner Business Index  for Plastics Processing closed February up four points, to 49.1, landing close to July’s index that launched the eight-month contractionary period. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.

Plastics Processing Business February 2022

FIG 1 Plastics processing activity contracted again in February for both custom processing and total processing, but the latter inched closer to flat.

The GBI sub-index for new orders appeared to be leading the way — still contracting, but at a slower rate in February. As expected, production activity and backlogs followed suit. February export and employment activity stayed about the same as last month, both still contracting, with employment inching ever-so-close to flat, where it has hovered for five months. There was no pressure on supplier deliveries in February, reinforcing that any uptick in plastics activity is not going to stress the system. In fact, supplier deliveries that have been lengthening at a slowed rate for months threatened to shorten in February.

Plastics Processing Business February 2023

FIG 2 Drivers of plastics processing activity contracted at slower rates in February.

If the past 12-month supplier deliveries trend continues into March, there will be a shortening of supplier delivery times for the first time in three years. The supplier deliveries trend also suggests supply-chain issues that artificially lengthened supplier deliveries for months have resolved or have otherwise lost their impact. The GBI Plastics Processing Index and component activity are encouraging, but far from “on fire,” so cautious optimism is recommended. Overall business activity for custom processing stayed about the same, contracting to a greater degree than total plastics processing in February. 

EDITOR’S NOTE: Finding reliable and relevant data to help guide your business is always important, but especially so during challenging economic times. For this reason, the GBI Plastics Processing Index serves as a great tool for making data-driven decisions. Thank you to everyone who has previously completed GBI surveys. Your participation helped increased response in 2021-2022, making the GBI better than ever because of your involvement. Thank you for your time and efforts and for trusting us to provide you with the latest industry and business insights both in the past and in the future.

If you are a North American plastics processor and would like to participate in this research, click here to begin the process by subscribing free to Plastics Technology magazine.

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.

SolidCAM Additive - Upgrade Your Manufacturing
World According To
Airtech
Acquire
Stop Wasting. Start Shredding
New CM-17d
Guill - World Leader in Extrusion Tooling
Gardner Business Media, Inc.

Related Content

economics

Plastics Processing Activity Contraction Continues in August

Four months of consecutive contraction overall.

Read More
economics

Processing Takes a Dip in June

Plastics activity took a relatively big downturn in June, ending at a low for the year and lower than the same month a year ago.  

Read More
economics

Plastics Processing Contraction Slows Slightly

While the market is still sluggish, future business outlook rose significantly from last month.

Read More
economics

Plastics 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 More

Read Next

Automation

People 4.0 – How to Get Buy-In from Your Staff for Industry 4.0 Systems

Implementing a production monitoring system as the foundation of a ‘smart factory’ is about integrating people with new technology as much as it is about integrating machines and computers. Here are tips from a company that has gone through the process.

Read More
NPE

See Recyclers Close the Loop on Trade Show Production Scrap at NPE2024

A collaboration between show organizer PLASTICS, recycler CPR and size reduction experts WEIMA and Conair recovered and recycled all production scrap at NPE2024.

Read More
NPE

Making the Circular Economy a Reality

Driven by brand owner demands and new worldwide legislation, the entire supply chain is working toward the shift to circularity, with some evidence the circular economy has already begun.

Read More
3D printing machine trainings