Processing Index Ends Year Near Where It Started

The Gardner Business Index (GBI): Plastics Processing closed 2021 with a December reading of 58.1, just over three points above its year-ago reading. Plastics processors surveyed during 2021 reported a host of disparate changes in business conditions. The greatest contributors to the rise in the Index were slower supplier deliveries and increased backlogs, both of which yield higher Index readings for those components.

Recall that rising supplier delivery readings result from declining supply-chain performance; had supply chains been better able to serve the industry, it is likely that backlogs would have been restrained thanks to greater production—both of which would have contributed to lower overall Index readings. Meanwhile, new orders, production, and export activity, all of which moved in a sawtooth pattern throughout the year, ended 2021 very near where they started.

Custom processors fared similarly, with supplier delivery and backlog readings keeping 2021 total year-end results comparable to 2020’s. However, this group’s other business components generally fared worse by the end of 2021, with both exports and employment readings registering contracting activity in December. Further, new orders activity, which serves as a bellwether for several other components of the overall index, ended the year four points below its year-ago reading.

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.