A study conducted by the British Plastics Foundation has found that two thirds of plastics companies are worried about the prospect of a no-deal Brexit, believing it would negatively impact their business.
The survey found that 29 per cent of companies believed that the impact of no-deal would be ‘very’ negative.
It also showed that more plastics companies are making contingency plans for a no-deal Brexit, up to 62 per cent compared to 53 per cent in December 2018.
Investments have also been affected by Brexit fears, with 38 per cent of companies planning less investment as a result of the UK’s exit from the EU.
Despite industry-wide concerns over Brexit, the survey showed that 38 per cent of companies perceive today’s market conditions as favourable, with 82 per cent of companies reporting sales will remain constant or increase, and over half expecting their sales turnover to increase over the next 12 months.
Looking at export sales, 20 per cent of companies believe exports will go down for their business over the next year, whilst 41 per cent predict they will increase and 39 per cent believing they will stay the same.
A third of companies expect their profit margins to increase, with 378 per cent anticipating profits remaining constants, and 30 per cent expecting a decrease.
Philip Law, Director General of the BPF, said: “We are the third largest manufacturing sector by employment in the UK. We see no-deal Brexit as a dramatic act of self-sabotage that will have long term negative impacts on the plastics industry which otherwise has great potential for job creation and global business development.”
“The plastics industry supplies an extraordinary wide range of sectors. What is good or bad for the plastics industry acts as a barometer for what is good or bad for the UK economy as the whole.”
“The UK is a global leader in plastics innovations and a thought leader in major issues such as sustainability. It is senseless to place all this in jeopardy and hold the industry back from realising its full potential.”