The liquidity situation in the plastics processing industry remains tense: Over the past twelve months, 75 percent of companies have struggled with financial bottlenecks. Of these, 58.5 percent rated the situation as somewhat critical, and 17.5 percent even as very critical.
This is shown by a survey conducted by Close Brothers Factoring GmbH of Mainz among 200 companies in the industry. The outlook is even more pessimistic: For the coming twelve months, 81.5 percent of companies expect a critical liquidity situation. Of these, 61.5 percent anticipate a somewhat strained situation and 20 percent a very difficult one.
The companies cited declining sales due to falling demand (25 percent) as the primary reason for the bottlenecks experienced so far. Delayed incoming payments also played a significant role (22.5 percent). High energy costs, which could only be passed on partially or with a delay, followed at 20.5 percent. In addition, 17.5 percent of respondents reported significant strain due to payment defaults.
Non-payment is widespread
A significant problem is also evident in accounts receivable management: 199 out of 200 companies reported difficulties in collecting outstanding invoices. While 10.5 percent faced both delays and non-payments, 30.5 percent reported only late payments and 58.5 percent reported only bad debts. Overall, 41 percent were affected by payment delays, while 69 percent had to cope with non-payments.
To secure their liquidity, 82 percent of companies resorted to additional financing measures last year. Bank loans were the most common option (42 percent). Thirty-five percent each relied on factoring or the sale of fixed assets. In addition, 28 percent hired lawyers or debt collection services. Another 25.5 percent utilized sale-and-lease-back models.
Continued pressure expected
Companies continue to anticipate significant financial challenges over the next twelve months. A total of 81.5 percent expect high liquidity pressure, while 18 percent anticipate a relatively stable situation. Only 0.5 percent see no risks to their solvency.
The biggest future burdens are delayed incoming payments (29.5 percent). This is followed by declining sales (28.5 percent), rising transportation costs (27 percent), and expected payment defaults (24 percent).
