Plastics Processing Growth Slows Slightly

The Gardner Business Index (GBI) for plastics processing showed a slowing rate of expansion again in May, closing the month at 54.1, down from 56 in April. It has been about a year and a half since the index was last at that level, but prior to 2019 a range around 54 was not uncommon. The Index is determined based on responses to monthly surveys conducted of Plastics Technology subscribers. Readings above 50 indicate expansion; 50 signals no change; and values below 50 indicate contraction.

Four of six index components contributed to slowed expansion in May: production, new orders, backlog and supplier deliveries. We can hope that the latter reflects, at least in part, an easing of the supply-chain disruptions. Meanwhile, exports contracted, and employment expanded at a faster rate.

Overall business activity for custom processors slowed more than for processors overall, closing the month down at 50.8 from 55.5 in April.

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.