The President of the German Association of Plastics Converters (GKV) has called for a ‘growth agenda’ for Germany.
At the association’s press conference last week, Dr. Helen Fürst said a ‘future-oriented’ agenda is needed to make sure industry in German can ‘pick up pace again in two or three years’.
As other reports have indicated, the German plastics industry recorded shrinking sales in 2023. Sales in the processing industry fell by around 6% compared to 2022, to € 72.5 billion. The reasons why are not new: unfavourable global economic conditions, high energy prices, shortage of skilled labour, lack of competitiveness with imported material.
Data also revealed that 52% of the surveyed German plastic converters are planning to process more recyclates in 2024 than in the previous year. Of the remaining 48%, 37% are planning to process a similar amount and 11% do not have plans to process any recyclate.
The numbers are slightly better than the 2023 figures, when 48% of converters processed more recyclates than in 2022 and 50% reported converting a similar amount.
When asked what the most likely outcome would be if the economic situation in Germany does not improve in 2024, 58% of plastic processors said they would cut jobs, 42% would opt for hiring on a short-time basis, 35% would move production abroad, 26% would be forced to partially cut production, and 16% would need to fundamentally review their business operations.
Figures from the German Industrial Association for Plastics Packaging (IK) released last week indicate that the overall economic situation might have hit rock bottom in 2023, providing a ‘glimmer of hope’ for the year ahead.