According to the latest survey by the German Plastics Packaging Industry Association, nearly 90% of the respondents think that the current economic situation in the industry is good and they have positive expectations for sales in 2018. However, the German plastic packaging industry is still facing unfavorable factors such as the price hikes of raw materials and tax reform impact .
The German Plastics Packaging Industry Association (IK) conducted a simple survey of 100 industry professionals in December. According to the survey, 90% of enterprises think the current economic situation is good. The association said: "Compared with the beginning of 2017, the proportion of enterprises that have confidence in the economic situation of the industry increased significantly. At the beginning of the year, only 70% believed that the economy was in good condition."
Respondents conducted a more positive assessment of the sales forecast for the first quarter of 2018, but the export assessment was essentially flat with 2017. Nearly 60% of respondents said they expect raw material prices will rise, which may affect the price of plastic packaging. IK survey added: "The profitability is still tight."
According to IK's survey, over-average results over the past two years have caused the company's expectations to rise again. However, commenting on the survey's findings, IK's general manager Ulf Kelterborn warned that the "optimistic outlook" could not mask the fact that Germany's economy is facing a "growing threat."
He said: "In addition to the high cost of electricity, Germany now needs to be prepared for a stronger international tax competition." Kelterborn said the U.S. corporate tax cuts have triggered a corresponding tax reform in China and other industrialized countries . "An effective tax burden of more than 28% for German companies is already quite heavy and needs urgent correction."
The German Plastics Packaging Industry Association noted that other risk factors are "growing serious skills shortages" and space and digital infrastructure, and that these factors may worsen and hinder economic growth "faster than expected". The German Plastics Packaging Industry Association concluded: "The government needs to make forward-looking decisions in this area as soon as possible."