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You are buyer for Polyurethane Foam (a kind of plastic material) and you want to analyse the current situation of the Supply Market

Sociology

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You are buyer for Polyurethane Foam (a kind of plastic material) and you want to analyse the current situation of the Supply Market.

There are 3 industries buying most of the production available. (Packaging, Households, Construction) and a small percentage of other industries.

 

The current situation regarding demand and supply is the following:

The demand growth over the next 3 years is expected to be about 15%.

You have also learned that the suppliers are currently using their factories at 87% of their production capacity.

Suppliers have invested to increase their production by 10% over the next 3 years.

 

Based on this information, describe how the difficulty of the market will change in the future, and how can you expect the prices to change (increase or decrease).