Plastics Processors Start 2022 with Modest Boost

The Gardner Business Index (GBI) for Plastics Processing started 2022 up more than one point from December to close January at 58.9. The latest gains came thanks to accelerating expansion in new orders, production, and backlogs. A six-point increase in January’s supplier deliveries signaled that supply-chain performance remains weak, disrupting the improved readings from Q4 2021. Those business-activity readings that were lower than a month ago included employment and export orders. January’s export reading signaled contracting activity for the first time since September. Separately, the decline in employment activity indicated the slowest level of expansion since late 2020.

Among only custom processors, overall business activity revealed another month of slowing expansion. January’s Index reading of 55 was the lowest since October 2020 and extended the trend of slowing expansion in the custom sector that was first observed in May 2021. New orders activity showed no change from the prior month, while production, employment and export orders all registered contracting activity. January’s production and employment readings were the weakest since mid-2020; however, recent months of well-above-average backlogs suggest that the industry’s primary problem lies with production rather than demand.

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.

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ABOUT THE AUTHOR: Michael Guckes is chief economist and director of analytics for Gardner Intelligence, a division of Gardner Business Media, Cincinnati. He has performed economic analysis, modeling, and forecasting work for more than 20 years among a wide range of industries. He received his BA in political science and economics from Kenyon College and his MBA from Ohio State University. Contact: (513) 527-8800; mguckes@gardnerweb.com.