CPRJ Survey: Majority of respondents remain conservative on overseas expansion in 2024

Since the world’s economy gradually recovers after the pandemic, globalization remains the trend for manufacturing. Plastics and related industries, as well as downstream application industries, are seizing opportunities to expand their markets to overseas. However, the results of CPRJ industry survey show that a majority of respondents remain conservative.

Background of respondents

China Plastic & Rubber Journal (CPRJ) and Adsale Plastics Network (AdsaleCPRJ.com) conducted a survey with various industries on their intention to expand their business overseas. The respondents are from various industries, including automotive, chemical and raw materials, plastics processing machinery, medical, packaging, E&E and others.

A majority of respondents revealed that they do not have any export. For respondents who have overseas business, 22% of them owns export ratio with less than or equal to 10%, 11% of them have 11-30% export ratio, 7% have 31-50%, and the remaining 8% have more than 50% export ratio.

Respondents who have export business stated that China, India and South Korea are their main export countries, all with 15% respectively. Other common export countries include Russia (12%), Japan (12%), the US (10%), South Asia (10%), Europe (7%), Africa (5%), Middle East (3%) and Mexico (3%).

Plan on export remains conservative

On the plan to increase export scale in 2024, survey shows that a majority of 41% respondents express that they plan to decrease their export scale. 26% of respondents show that they plan to maintain their export scale.

For the respondents who plan to upscale their export, 14% plan to increase less than or equal to 10%, 14% plan to increase 11-30%, 5% plan to increase 31-50%, and only 1% plan to increase more than 50%.

Preference from industries

From the survey result, 50% of respondents prefer to purchase equipment and material from nearby suppliers, if their companies build a factory overseas. 28% hope that their original suppliers will build a supply facility nearby while 22% prefer to purchase from original suppliers.

The respondents also shared which overseas markets they are optimistic about in 2024 – 14% respondents chose China, 10% chose the US, 10% chose Indonesia and 9% chose Southeast Asia.

Other overseas markets which were chosen by the respondents include South Korea and Japan (7% respectively), India (6%), Russia (5%), Europe and South America (3%), and Mexico (1%).