The plastics processing industry is suffering a decline in sales - the federal government needs to take action

The plastics processing industry is suffering a decline in sales - the federal government needs to take action

According to a report from www.plastverarbeiter.de, the first half of 2023 led to a significant decline in sales for the plastics processing industry. The General Association of the Plastics Processing Industry (GKV) is calling on the federal government to take measures to improve the situation. According to the Federal Statistical Office, sales in the plastics processing industry fell by 4.6% in the months January to June 2023 compared to the previous year. Employment figures remained stable, but companies are increasingly using short-time work as an instrument. The business climate for manufacturers of plastic goods remains negative.

The decline in sales affects various industrial sectors, in particular the manufacturers of semi-finished products (plastic sheets and films) with a decline of 10.8%. Manufacturers of plastic packaging materials also recorded a 6% decline in sales. This is due to weak sales in retail and in key customer industries such as the chemical industry. Manufacturers of plastic building supplies also recorded a significant decline in sales of approximately 8% due to increased interest rates and lower demand in the construction industry. In contrast, manufacturers of other plastic products, particularly technical plastic products, recorded an increase in sales of 4.7%. The automotive industry recorded an upswing after a difficult previous year, but experts are skeptical as to whether this trend will continue in the second half of the year.

The President of the GKV, Dr. Helen Fürst, emphasizes that the federal government's measures, such as the announced Growth Opportunities Act, are not sufficient to give the industry momentum again. Among other things, it calls for internationally competitive electricity prices, a major corporate tax reform and comprehensive digitalization of the economy. She warns of a mass migration of production to other countries and a shortage of skilled workers in Germany.

Current developments in the plastics processing industry may have an impact on the market and the financial sector. A decline in sales can lead to a weakening of companies, which can affect stock prices and investments. The increased use of short-time work can lead to higher unemployment, which in turn affects the demand for various financial products. Experts will continue to closely monitor developments to analyze any possible impact on the market or the financial industry.

Source: According to a report from www.plastverarbeiter.de