The majority of members of the UK plastics industry were confident of a growth in UK sales turnover over in 2011, the British Plastics Federation said Wednesday.
The BPF statement said that member companies signaled a buoyant start to 2010 in its latest Business Conditions Survey. The majority of the 80 respondents to the survey were confident of a growth in UK sales turnover during 2011. This was a lower proportion forecasting an increase than in the June survey -- 64% as against 73% -- but the proportion signaling increases in turnover of over 11% increased from 20% to 27%.
The statement said that this indicated the sector's recovery from its low point in 2008 but that gains were slowing and becoming increasingly focused in specific market sectors. Turnover growth to some extent masked the transfer of raw material price increases with the percentage increase in sales volume growth being one third less than that of turnover growth, the industry body said.
The survey also pointed up growing optimism among exporters, with 53% forecasting an increase in export sales turnover in 2011 as against 46% in June 2010. This could be accounted for by the continuing weakness of the pound against the euro and the dollar but also indicated the growing interest in global markets.
The survey also showed a continuing growth in capital investment with 64% planning new investments over 2011 up from 61% in June 2010.
Nearly half those respondents who were investing (49%) were focusing on energy efficient equipment at a time when ambitious Climate Change Agreement targets have to be met and as energy prices remain a major cost element.
