M
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GLOBAL PLASTICS LETTER
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E-mail: mettenson@globalplasticsletter.com
Website: www.globalplasticsletter.com
JANUARY 2001
Dear Colleague:
As the 21st century takes root…an uncertain year looms – one with increasing upward pricing pressure, driven by continuing oil
and natural gas escalation. Despite increasing gains in productivity and cost cutting driven by information available free on the
internet – the “r” word looms large in 1Q 2001 – the driver as always…material price inflation and increasing costs of services
attributable to increased energy costs.
Yet – positive trends are developing:
• freedom from geography – an ability to do most things, anywhere.
• coming of age of e-marketing – purchase points supplemented by delivery/service ones.
• Ubiquitous computers – as common and unremarkable as telephones and electricity are today.
Training will need to be CONSTANT – a mosaic of cultures and ages will pervade all businesses.
All told, we are forecasting a real (net of inflation-which could be 5%) revenue gain of 8% - and a commensurate profit pick-up,
2001 vs 2000. By 2005, positive trends will be in full bloom.
Just a note on our mission this year …you may feel you’re drowning in information these days.
Our aim is to help you cut through the clutter, focus on things you really must know…to run your organization smarter and more
profitably.
So we choose our topics carefully, and we write tight and lean – we spend a lot of OUR time to save YOURS…and that’s a
promise.
Back to the global economy – the euro is rising against the dollar signaling strength in most European industry – energy prices
seem to have peaked. With the U.S. Federal Reserve poised to reduce interest rates 1Q 2001, the inflationary concerns may
outweigh the recessionary ones. Remember when material price increases keep on coming (a new round due in Feb 2001), the
buyer (whether it be the manufacturers or distributors customer) starts shopping which ordinarily slows down the sales cycle –
however in 2001, the internet speeds t