Plastics Processing Contracts Again
October’s reading marks four straight months of contraction.
The Gardner Business Index (GBI) for Plastics Processing closed October at 45.9, down from 46.7 in September. 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 October — slightly for overall plastics processing, which includes captive operations, and even more so for custom processors.
All but one component contracted in October, including employment (just barely). The last time employment contracted was August 2020. New orders and backlogs contracted at faster rates, while exports and production contracted at about the same rates as September.
Fig 2 – Four components contracting in September grew to five in October — most strongly in new orders and backlogs (3-MMA= three-month moving average).
Supplier deliveries continued to lengthen at a slower rate, landing in more typical pre-pandemic territory, suggesting supply-chain pains may be easing.
Overall business activity for custom processing again contracted more than total processing, closing October down almost three points at 41.
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 Index serves 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 2021-2022, 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.
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