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New study finds competitiveness of European plastics processors is under threat

European processors are feeling pressure from competitors abroad, especially from players in the Asian or Turkish markets, says a new study entitled “Competitiveness of the European Plastics Converting Industry”, conducted by Dr. Wieselhuber & Partner (W&P) in collaboration with the European Plastics Converters (EuPC) Association. Moreover, fresh competitors from North Africa and the Middle East are also heating up global competition, it reported. The study also found that legislative and tax related guidelines in EU countries and a lethargic implementation of EU regulations are significantly impeding business. Particularly mid-sized family owned companies in Germany, France and the Benelux are feeling squeezed:  these are the companies that are also being hit by the shortage of skilled labor, which is substantially hindering innovation.

More than 300 companies in the plastics converting industry in 19 European countries participated in the survey that was conducted for the study. The survey examined issues such as competitive environment, legislative conditions, the supply situation and relevant sales markets. The results show that domestic laws and EU guidelines, such as REACH or Food Contact Materials, have led to bureaucratic overhead and increased costs, placing European companies at a distinct disadvantage compared to the global competition.

 “Small and mid-sized companies have pretty much maxed out improving efficiency as a way to compensate for these massive cost increases,” explains Dr. Stephan Hundertmark, author of the study and industry expert at W&P.

“This makes it more difficult for them to invest in innovative and customer specific product solutions – once a pillar of competitive advantage.”

Despite future challenges, European plastics converters are convinced they will continue to maintain an edge in the international market – provided they address customer needs with innovative solutions and maintain efficient processes. Based on the outcome of the survey as well as complementary interviews with experts, W&P has identified the following strategic levers for maintaining competitiveness in Europe’s plastics converting industry:

  • Asset investments with a focus on replacement, efficiency and capacity expansion
  • Constant striving for efficiency
  • Focus on innovation and quality
  • Customer proximity as a competitive advantage
  • Growth through business expansion within the EU
  • Review of the corporate strategy if business evolution cannot cope with market revolution

EuPC is the EU-level Trade Association, based in Brussels, representing European Plastics Converters. EuPC now totals about 51 European Plastics Converting national and European industry associations, it represents close to 50,000 companies, producing over 45 millions tonnes of plastic products every year.

Source: www.plastictoday.com

 

Source: www.plasticstoday.com/
Source: www.plasticstoday.com/

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