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Careful optimism and increasing raw material prices

Careful optimism and increasing raw material prices
The IK’s Economic Trend for the first quarter of 2012 shows that companies within the plastic packaging industry have more positive expectations than was the case in the last quarter of 2011. Almost all companies judge the current economic situation to be good, or at least satisfactory.

The turnover prognosis regarding their own companies, however, is rather more cautious. While 66 percent of people asked expect a continuous turnover development in the first quarter of 2012, around 20 percent assume that turnovers will decrease. In the field of exports, a third of IK members expect further downturns. In this respect, companies rely on a solid domestic economic activity.

According to IK managing director Ulf Kelterborn, the survey results from the IK’s Economic Trend demonstrate that the cost spiral will continue to increase also in 2012. Nearly 40 percent of IK members expect higher raw material prices in 2012. Therefore, reduced profit margins have to be expected in the field of plastic packaging processing. Consequently, the market should react to this situation as quickly as possible.

Read more: Market 457