Plastics Processing Contraction Steadied in November
Though still contracting, November marks a break in what has been a steadily faster rate of contraction in plastics processing activity.
The Gardner Business Index (GBI): Plastics Processing closed November at 46.3, inching back a little closer to September’s index (46.7) before it dropped to 45.9 in October. The index is based on survey responses from subscribers to Plastics Technology. Indices above 50 signal growth; below 50, contraction.
FIG 1 Plastics Processing activity contracted again in November for total plastics processing and even more so for custom processing — but both contracted more slowly than in the previous month.
Two GBI components still contracting in November, but at levels consistent with October, are production and exports. In fact, exports have contracted at the same level since June. Employment has been essentially flat, not expanding or contracting, for three months now.
Meanwhile, backlogs and new orders contracted to similar degrees in November. Backlogs could afford to contract, considering the degree to which they had expanded, due at least in part to supply-chain issues. That new orders are not coming in to refill the pipeline, however, is not encouraging.
FIG 2 Backlogs and new orders both contracting make for a concerning combination in November. (3-MMA = 3-month moving average).
Supplier deliveries continued to lengthen but at a slower rate than in immediately previous months.
Overall business activity for custom processing contracted again in November—more strongly than processing overall—but at a slower rate, closing the month at 43.1 compared with October’s 41.
Related Content
Processing Megatrends Drive New Product Developments at NPE2024
It’s all about sustainability and the circular economy, and it will be on display in Orlando across all the major processes. But there will be plenty to see in automation, AI and machine learning as well.
Read MorePlastics Processing’s Ups and Downs
Overall index dips, but custom processors hold steady. Employment up, backlogs down.
Read MoreNPE2024 and the Economy: What PLASTICS' Pineda Has to Say
PLASTICS Chief Economist Perc Pineda shares his thoughts on the economic conditions that will shape the industry.
Read MorePlastics Processing Contracts Again
October’s reading marks four straight months of contraction.
Read MoreRead Next
For PLASTICS' CEO Seaholm, NPE to Shine Light on Sustainability Successes
With advocacy, communication and sustainability as three main pillars, Seaholm leads a trade association to NPE that ‘is more active today than we have ever been.’
Read MoreMaking the Circular Economy a Reality
Driven by brand owner demands and new worldwide legislation, the entire supply chain is working toward the shift to circularity, with some evidence the circular economy has already begun.
Read MoreLead the Conversation, Change the Conversation
Coverage of single-use plastics can be both misleading and demoralizing. Here are 10 tips for changing the perception of the plastics industry at your company and in your community.
Read More