Two recent surveys of the UK plastics industry give slightly differing views on the health of business there. The 1996 edition of The British Plastics Federation's (6 Bath Place, Rivington Street, GB-London EC2A 3JE) Business Trends Survey, reports that 60% of plastics processors covered by the survey, reported an increase in sales last year, with 43% improving sales by more than 10% on the previous year. This is the first time such a large proportion of processors have achieved this kind of increase since 1988. The strongest performing companies were those supplying the automotive sector, where 69% of companies achieved 10% or more growth in sales. Processors remain optimistic about the future as well with 87% of companies surveyed expecting sales to further improve in 1996 and only 2% predicting a fall. The strength of automotive component suppliers was also reflected in the results on profitability, where 77% of companies showed an increase in profits. This is quite an achievement given the increase in raw material prices that occurred last year, and the pressure by OEMs to cut their costs. In contrast over half of companies involved in building and construction had lower profits last year. Most companies remain cautious about the future profit levels, predicting that for 1996 they will be largely unchanged. This reflects the pressure margins are under in many processing sectors.

The BPF survey also reports that the number of companies reducing their workforce has dropped to one quarter compared with 42% two years ago, when the survey was last carried out. Many companies were happy to remain static, but 37% had taken on new staff in the past twelve months. However, another survey produced by the British Polymer Training Association (Coppice House, Halesfield 7, GB-Telford TF7 4NA) shows that the total number of employees in the industry declined by 11,000 in the year to August 1995 to 232,000. This despite the fact that the BPTA report estimates that the number of companies involved in polymer and rubber processing has increased by 10% over the past two years. Given that the number of plant operatives has declined, whilst managerial and administrative staff have increased in number, then one possible explanation is that the decline in staff is technology driven as companies invest in more automated plants, rather than any underlying weakness in the industry.