Plastics Processing Expansion Continues

The Gardner Business Index (GBI) for plastics processing continued a fourth month of accelerating expansion, closing March at 60.5, driven by gains in new orders and production. The GBI is based on surveys conducted by Gardner Intelligence of Plastics Technology subscribers.

The 60.5 Index value reflects business activity among both captive and custom processors. For custom processors alone, overall business activity in March revealed a second straight month of ever-so-slightly accelerating expansion, landing at 56.1.

FIG 1 Overall plastics processing activity accelerated for the fourth straight month in March, driven by gains in new orders and production.

In March, overall business activity readings that held steady included supplier deliveries and backlogs, both of which are been challenges throughout the supply chain for all manufacturing for months.

Employment among all processing locations, meantime, accelerated a bit after a two-month dip that matched January of 2021.

FIG 2 Among all processors, a bump in production and new order activity has been welcomed, but there is still a lot of product in the pipeline. (3-MMA = three-month moving averages.)

March continued the contraction trend in export activity that began in January of this year.

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 and Custom Processing Indices serve 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, 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.