The industry is continuing to suffer further pressure from price increases in a week when PVC extruders are facing the prospect of a further 10%-plus hike in the cost of resin immediately after one forecast that many glass manufacturers could be shut down by fuel prices knocking out already slender margins.
News of at least one European resin producer threatening to add Eur110/tonne, not to mention sectors as diverse as silicone reporting serious increases, comes alongside the latest Plimsoll Analysis of the glass industry warning that some companies were days away from halting production altogether.
The new Plimsoll Analysis has vetted the financial health and outlook of the UK’s 256 leading glass companies. Based on the latest data, this interactive analysis of the UK market shows:
- 105 companies were rated as Danger or Caution – almost half of the market
- Profit margins are down to just 1.8% in the latest year from 5.4% the year before
- Sales per employee is down to just £92,000 – there is little room for wage growth
- Growth in the market is recovering from the pandemic but is still down 3.5%
- 88 companies have seen their debt position deteriorate in the latest year
The report concludes: “If costs outweigh revenue generated the UK’s glass-making companies are right to be drawing up plans to cease production. “The economic case for the production of glass in the UK is being sorely tested by a perfect storm of shortages and cost increases.”