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Article: European compounders facing more competition, lower profits. (Analysis).
- Article from:
- High Performance Plastics
- Article date:
- February 1, 2003
CopyrightCOPYRIGHT 2003 International Newsletters. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Once regarded as one of the most dynamic sectors within the European plastics industry, thermoplastic com pounding is now facing a number of factors that are having a negative impact on the sector. Principal among these is competition from thermoplastics manufacturers who are offering increasingly specialized grades. Other factors include:
* the introduction of e-commerce and more one-stop sourcing;
* reducing profit margins;
* the globalization of the industry's end users;
* structural changes in the supply chain;
* changes in the location of consumption;
* industry maturity and increasing specialization.