Plastics Technology - Dedicated to improving Plastics Processing.
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With a reading of 52, the Gardner Plastics Business Index grew for the fourth month in a row, although the rate of growth decelerated to its slowest rate in 2017. (Index values above 50 indicate growth; values below 50 indicate contraction.) The start of 2017 was still the best period of perfor- mance for the industry since October 2014 to January 2015. The index for custom processors, in particular, grew for the fourth straight month. New orders and production both grew for the fourth month in a row. However, new order growth deceler- ated for the second month, while production decelerated for the third straight month. The backlog index contracted for the second time in three months. However, the index still was signifi- cantly above its level in 2015 and 2016. Therefore, the trend in the backlog index indicated that capacity utilization should increase in 2017. Employment increased for the fourth straight month. Exports have contracted at an accelerating rate since October 2016. Supplier deliveries lengthened at their fastest rate since February 2012. Material prices continued to increase, but the rate of increase decelerated slightly from last month. However, the index still was at its third-highest level since the survey began in December 2011. Prices received increased for the seventh time in eight months. The index has steadily improved since June 2015. Future business expecta- tions remained strong, as the index improved somewhat from last month Petrochemical processors (compounders and materials manufac- turers) represented the fastest-growing industry, showing strong growth for the fourth straight month. Electronics, computers, and telecommunications have grown in seven of the last eight months. Medical grew for the fourth straight month. Plastic/rubber products manufacturers contracted for the Custom processors and medical market grow for fourth straight month. Steve Kline Jr. Dir. Market Intelligence ABOUT THE AUTHOR: Steven Kline Jr. is part of the fourth-generation ownership team of Cincinnati-based Gardner Business Media, which is the publisher of Plastics Technology. He is currently the company's director of market intelligence. Contact: (513) 527-8800; email: skline2@gardnerweb.com blog: gardnerweb.com/economics/blog April's Index: 52 Plastics Industry Business Index first time since November 2016. And automotive contracted for the first time since September 2016. The North Central-East region grew at the fastest rate in April. The region grew for the fifth month in a row and the last four months had very strong growth. It was followed closely by the South Central region. The North Central-West, Southeast, and Northeast had more moderate growth. The West had rapidly accel- erating contraction in the last two months. Its index in April was the lowest since the survey began in December 2011. Plants with more than 250 employees contracted for the first time in 2017. Facilities with 100-249 employees have grown every month but two since March 2016. Companies with 50-99 employees grew for the fourth month in a row. Processors with 20-49 employees grew for the seventh time in eight months. Processors with fewer than 20 employees expanded for the fourth time in five months, although the rate of growth has been minimal. 70 60 50 40 30 JAN 12 JUL 12 JAN 13 JUL 13 JAN 14 JUL 14 JAN 15 JUL 15 JAN 16 JUL 16 JAN 17 April 2017 Index 52 Values below 50 indicate contraction Values above 50 indicate growth 73 JUNE 2017 Plastics Technology PTonline.com YO U R B U S I N E S S G A RDNER BUSINE S S INDE X : PL A S T IC S