With more than 300 members, the German IK Association of Plastic Packaging, IK Industrievereinigung Kunststoffverpackungen e.V., is the largest trade association within the plastics packaging industry in Europe. IK represents the lion’s share of the German plastics packaging market, accounting for more than 4 million tons of plastic packaging and films.
Jan 9 2015
Cautious confidence for 2015
In light of last year’s economic development, which was characterised by many periods of weakness, the IK’s forecast for the economic development for the first quarter of 2015 is more restrained than the one in early 2014. However, current results also show that companies assume that the economy will revive now as compared to the 4th quarter 2014.
31 percent of the companies assume turnover increases compared to only 7 percent in the last quarter of 2014. In this respect, a positive expectation for 2015 prevails in the German plastic packaging industry, even though in many European countries the economic crisis is far from over.
In this context, a continued low oil price may become an additional driver for economic development for the plastic packing industry as well. At the same time, however, it can be found that the strong oil price reduction in the last half year did not have any substantial effects on the price situation in plastics for packaging. The markets show clearly that oil and plastic prices do not
develop in parallel. This is expected to continue in 2015.
The association is concerned about the continued great reservation of the industry where investments are concerned. They are the basis for further economic growth and decisive for maintaining competiveness of the German
The investment rate in Germany is now one of the lowest of all industrial countries. This may turn into a considerable locational disadvantage more quickly than expected. The IK Industrievereinigung Kunststoffverpackungen e.V. believes that the current economic policy conditions in Germany, which caused insecurity among the companies, are one essential reason for the bad
investment climate, in the plastic packaging industry as well.
Wrong priorities regarding energy policy with high energy prices, a doubtful manipulation of the labour market and early retirement in light of a dramatic demographic development are some essential examples in this context.
The German Federal government therefore needs to make its policy more investment-friendly and possibly modify some decisions already made.
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