A strange phenomenon emerges from the pages of this issue of PRW. An outbreak of good news has affected a wide range of companies:* Closed Loop Recycling starts £12m project,
* BPI invests in second ten-colour printing press,
* Sharp Interpack spends £3m on new line,
* Bourne Technical Mouldings enters medical arena.
All these companies have decided to invest at a time when the economic downturn has cast gloom over most sectors. Are they foolhardy, or brave?
Maybe we should not be so surprised by their actions, though. Each has valid business reasons for the investments, which target markets with above average growth prospects over the longer term: recycling, consumer packaging and medical products.
Indicative of this strategy is BPI, which said it is focusing on the consumer goods and agricultural sectors at a time of depression in another traditional market, construction.
Other companies point to new contracts providing them with confidence to drive ahead: toolmaker Amtek Precision Engineers in the medical sector; moulder Thumbs Up in the household box market; and Icon Polymer supplying more vacuum cleaner belts.
There is a case for investment during a downturn, based on a strategy of tighter business focus. It is not a course suited for every company, given the prevailing economic headwinds. But for those with a strong vision of where they want their company to be, and the drive to succeed, this could be the right moment to invest in the future.
PRW.com (Plastics & Rubber Weekly), March 2009.