Plastics Processing Continues to Contract

The Gardner Business Index (GBI): Plastics Processing closed September at 46.7, down from 48.2 in August. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.

Three components contracted at fairly steep rates in September. New orders showed the most contraction, with production and backlogs close behind, landing at levels similar to September. It has been at least two years since all three of these three component indices were under 50.

FIG 1 Plastics processing activity contracted again in September for total plastics processing — and even more for custom processing.

Employment activity was essentially flat in September, meaning the proportion of processors hiring more than the previous month is about the same as the proportion hiring less. If the past several months’ trend continues, employment activity is likely to contract in October. Supplier deliveries continued to lengthen at a slower rate while exports contracted at about the same rate as in August.

FIG 2 Four major components of the index contracted again in September, all at faster rates than in August. (3-MMA = three-month moving average.)

Overall business activity for custom processing again contracted more than for total processing, closing the month at 43.9 compared with August’s 46.5.

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.