The global economic recovery is likely to drive industrial production in 2022. “Dissecting this further, plastics production will be buoyed by a rebound in household consumption. The demand for greater convenience, which was highlighted by the pandemic and lockdown economies across the world, will also highlight the requirements for plastics production,” according to Joey Roi Bondoc, Associate Director, Philippines Research at Colliers International. He added that the recovery of manufacturing activities and further expansion of e-commerce and online shopping should also support the expansion of plastics production globally.
Mr. Joey Roi Bondoc, Associate Director, Philippines Research
While supply chain disruptions caused by the pandemic have somewhat impacted the various industries, Mr. Bondoc expects brighter prospects for 2022. “We are seeing a gradual recovery in global supply chain processes in 2022. In our view, manufacturers from various industries are scouting for alternative sites to ensure less disruption with their operations beyond 2021,” Mr. Bondoc stressed.
Beyond 2022, Mr. Bondoc is optimistic that supply chain processes will gradually revert to pre-pandemic levels of efficiency and support faster growth of the global economy. This will ensure that vital production inputs and technologies will be made available for the needs of the industrial sector.
Mr. Bondoc also expects investments into corporate plans or production facilities to see an upsurge for Asia and other major regions: “We are seeing a rebound in these investments partly fuelled by the reopening of major economies such as the United States. Also, the cost of operations will also be determining factor but rates, such as those for utilities, are likely to improve especially with the resumption of manufacturing activities and as global chain operations gradually return to pre-pandemic level.” But labour and raw material costs will tend to be higher, especially labour, given the shift to higher-value manufacturing operations.
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- This article is part of the Outlook 2022 Special Report published in the International Plastics News for Asia December issue. Click here to read the full report.
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