Challenges and Perspectives in the Plastics and Rubber Industry

The associations of the plastics and rubber machinery industry are facing significant challenges. Geopolitical changes, high energy costs, and declining order intakes require new strategies and bold decisions.

At the annual conference of the associations for plastics and rubber machinery, waste and recycling technology, EMINT, and the working group for hybrid lightweight technologies on June 5, 2024, Ulrich Ackermann, Head of VDMA Foreign Trade, discussed the impact of geopolitical changes: "The globalization of the world economy is increasingly under pressure. China is pursuing autonomy with corresponding consequences for European mechanical engineering, and in the USA, the Biden administration has continued the 'national approach' to trade policy of the Trump administration in recent years. As a result, the world is heading towards a new bipolar world order."

For European mechanical engineering, this means the necessity of establishing their own production facilities in major target markets and offering market-specific products. Many plastics and rubber machinery manufacturers have already adapted to these challenges.

Although order intakes dropped by 22% in 2023, the German plastics and rubber machinery industry managed to conclude the year with a price-adjusted revenue increase of 13%.

The industry is facing several factors:

• Economic Uncertainties: Global economic turbulence is affecting the business environment.
• Raw Material Shortages: Bottlenecks in essential raw materials are hampering production.
• Sustainability Requirements: Stricter environmental regulations demand new production processes.

On the revenue side, the current year remains challenging due to the lack of new orders. If market uncertainties gradually diminish by summer and interest rates stabilize, investments in new machinery could pick up again. Depending on how quickly new orders are received, revenue development this year could either remain flat or slightly decline.

Mechanical engineering is a cyclical business. The current economic downturn in the plastics and rubber machinery industry is more than just a cyclical dip. "We cannot and must not downplay the economic weakness resulting from the current situation. But what we can do is focus on our strengths, use our innovative power, and solve current market issues with new, precise solutions," Reifenhäuser is convinced.

European machinery manufacturers deliver the technologies and digital solutions necessary to tackle today's major challenges: more circular economy and recycling, climate protection through reduced CO2 emissions, and machines and systems tailored to the needs of customers worldwide. The VDMA fully supports the motto of K 2025 "The Power of Plastics! Green – Smart – Responsible" and its Hot Topics "Shaping the Circular Economy", "Embracing Digitalization" and "Caring about People".

At the general meeting, the new board of the Plastics and Rubber Machinery Association for 2024 to 2027 was elected. Ulrich Reifenhäuser remains the chairman of the committee.