Plastics Technology

NOV 2018

Plastics Technology - Dedicated to improving Plastics Processing.

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1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 40 45 50 55 60 65 51. 2 56. 0 Plastics Processing Custom Processors Michael Guckes is the chief econo- mist for Gardner Intelligence, a division of Gardner Business Media, Cincinnati. He has performed economic analysis, modeling, and forecasting work for nearly 20 years among a wide range of industries. He received his BA in political science and economics from Kenyon College and his MBA from Ohio State University. Contact: (513) 527-8800; Learn more about the Plastics Processing Index at STAY AHEAD OF THE CURVE WITH GARDNER INTELLIGENCE Visit the blog at: or email The Gardner Business Index (GBI) for Plastics Processing reversed its direction from the last five months, rebounding to 56 for September (Index values above 50 indicate expansion; values below 50 indicate contraction; an index of 50 reveals no change). The latest reading returns the index to positive territory, gaining 5.5% over the same month a year ago. The index was driven higher by supplier deliveries, fol- lowed by new orders and production. New orders, employment, backlog and exports all pulled the average-based index lower. For a fifth month in a row, supplier deliveries expanded significantly more than all other compo- nents of the index. Gardner will be closely watching production figures in the coming months to determine if the above-average expansion of supplier deliveries unlocks additional manufacturing potential that may have been constrained by bottlenecks in the manufacturing supply chain. Interestingly, any production constraints from the supply chain over the last few months have not seemed to generate increased backlogs. Oscillating between expansion and contraction during the prior three months, backlogs expanded significantly in September, registering their fourth- highest reading since 2013. This increase came despite a simultaneous expansion in production. GBI is the market-research arm of Gardner Business Media, the publisher of Plastics Technology. GBI calculates its monthly index based on replies to surveys sent to subscribers of this magazine. September Index climbs 5.5% from prior month. Plastics Processing Bounces Back from Brief Lull Gardner Business Index: Plastics Processing Weakness in Exports Does Not Deter Expansion of New Orders The Plastics Processing Index rebounded from its sharp drop in August. All component readings improved for September. The most significant expansionary changes were in production, new orders and backlogs. Despite continued contraction in exports, new orders indicated surprising strength for September. Compared with the same month one-year ago, the new orders reading is up nearly 6%. This suggests that domestic demand is more than offsetting any weakness in foreign demand. FIG 1 FIG 2 By Michael Guckes Chief Economist 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 1/17 7/17 1/18 7/18 40 50 60 70 New Orders Exports @plastechmag 57 Plastics Technology 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 PRO CE S SING

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