Plastics Processing’s Ups and Downs
Overall index dips, but custom processors hold steady. Employment up, backlogs down.
The Gardner Business Index (GBI) for plastics processing showed a slower rate of expansion in April, closing the month at 56, down from March’s 60.5 reading. The drop in one month is reminiscent of October-November 2021. The upturn following that drop peaked in March 2022.
FIG 1 Expansion activity for plastics processors slowed a bit in March, though custom processors fared better than their captive brethren.
The index has had four peaks and valleys over the past 12 months (starting March 2021). Each peak has been lower than the previous, but the April reading is still among the highest for more typical times.
Backlog activity was down almost three points in April, which could be at least partly a function of employment activity going up to nearly the same degree. New orders and production activity slowed their expansion in April for the first time in 2022. Supplier deliveries slowed expansion in April too, which could represent a path to reduced supply-chain pain. April continued the contraction trend in exports that began in January of this year.
FIG 2 Faster employment expansion may have helped backlogs to dip in April. (3-MMA = three-month moving averages.)
Custom processors closed April at 55.5, down slightly from March’s 56.1 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.
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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