2023 was a difficult year for German plastics processors, with industry association GKV (Berlin; www.gkv.de) reporting a 6% decline in turnover to EUR 72.5 bn. The volumes processed also shrank significantly, by 9% to just 12.7 mn t.

Based on data collected by Germany’s national statistics office Destatis, which does not differ significantly from the GKV figures, domestic industry association TecPart (Frankfurt; www.tecpart.de) has now also drawn a critical conclusion about the situation of its member companies in the past year. Michael Weigelt, managing director of TecPart, reported that, owing largely to the lower price levels in 2022, manufacturers of technical parts were able to close last year with a slight rise in turnover.

Members had to stomach declines in production, particularly because of weak demand from the electronics and machinery manufacturing sectors. Only the automotive industry contributed to growth with a significant increase in sales – TecPart quotes a figure of 18%, citing the German automotive association Verband der Automobilindustrie (VDA).

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In a survey of plastics processors conducted by TecPart among 127 companies, two out of five stated that they recorded decreasing profits in 2023. Weigelt said this was the highest figure in the past six years. Only just under a quarter of respondents posted a rise in profits – the lowest number in six years.

The association warned that this development jeopardises the future viability of some companies. It said the situation is due, among other things, to the uptrend in costs – mainly for materials, electricity, and labour – that could not be passed on to customers to the extent required. 

Felix Loose, TecPart chairman and managing partner of plastics processor Roga (Wesseling, Germany; www.roga.de), called for urgent improvements to the conditions in Germany as a business location: “The industry is facing a Herculean task. Time has run out!”

According to the TecPart survey, expectations for business development in the current year are beyond cautious: at 54%, more than half of those surveyed said they feared stagnation in their economic development, and 25% even believe their profits will continue to shrink.

While the TecPart MD noted that most companies still appear to be economically robust, the survey shows that short-time work is on the table for around a third of companies. Even more (35%) reported struggles with the current financing conditions and liquidity concerns. 

TecPart comprises 920 manufacturers of technical plastic parts, which employ a total of around 100,000 and generate a combined turnover of more than EUR 20 bn annually.