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Time: 2017-02-17

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Take heart, for things will turn out well. ITR Economics President Alan Beaulieu made the prediction at the IAPD's annual conference and plastics exhibition in Chicago in November. In his keynote address, Beaulieu pointed out that despite the naysayers, the U.S. economy as a whole is doing well, with record industrial activity and strong GDP growth.

"" you may find that I am bullish on the United States, not because of patriotism, but because it is," "he added, humorously." "as the economy goes, so does the demand for plastics. The economy will go up. You will love life.

But seizing the opportunity to grow your business in the next few years is about getting ready now, he says. Over the past 20 years, the ITR has been more than 95% accurate in predicting the economy. Now, the company is forecasting a slight slowdown in U.S. growth and productivity growth next year, much stronger growth in 2016 and 2017, and another mini-recession in 2019.

Beaulieu expects limited growth in the first half of 2015, but as early as the third quarter, demand for plastics will rise, driven by the construction and automotive industries. But for the growth in 2016 and 2017, it will take some time for plastic business owners to get ready. He said growth would be 4.6 percent in 2016 and could double in 2017.

"You have a 2015 to make sure you're ready for 2016," Beaulieu said. "look at your business and where you can find demand. In 2016, you won't have time to think about it. Do these things well in 2015 and you will reap the rewards.

Preparing for growth doesn't necessarily mean plastics processors should embark on a hiring spree, warns Beaulieu. He suggests keeping a limited headcount in the face of impending inflation and using the money freed up to make sure your employees are well compensated.

"People's salaries have gone up, and people's expectations have gone up. It's harder to find labor. This will become more difficult in the future, he says, especially as the plastics industry has struggled to find skilled workers. Wages are rising for different reasons, such as healthcare costs, and are growing faster than inflation, making it an insufficient indicator of business performance.

"It is necessary to pay high salaries for talents, because they can promote the development of the company," he said. High wages and capable staff, coupled with what he predicted would be a lack of pricing, inventory problems and ample demand, "you should be able to turn a profit." Beaulieu said.

With a period of high growth on the horizon and Banks returning to normal, it is also time for companies to improve their capital. "The environment is one where Banks are willing to lend to businesses and businesses are willing to borrow from Banks." Banks are looking for opportunities to renegotiate with borrowers, so businesses can take advantage, he said.

"Investing in assets can make you more productive, or increase your business, and you'll find yourself profiting from it. Pay it back in cheaper dollars, interest rates will go up, and you'll be an economic player. He said.

But plastics companies need to watch out for 2019, when a "" very mild" "recession is expected - which is" "consumer-based and not catastrophic." "