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May-Jun Offers FINAL

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Plus Promise

11/4 Delivery Service Expanded!

Order items from our catalogue before 11am and receive your delivery before 4pm the same day.

Order items from our catalogue before 4pm and receive your delivery before 11am the next working day!

Applies to BB1, BB11, BB2, BB3, BB4, BB5, BB6, BB9, CH41-CH66, L,  M17, PR1, PR2, PR5 & WA  postcodes.

Roll out to continue throughout 2021.

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Packaging Industry Update

20.04.2021

Overview

Packaging is not the only industry to have its supply chain and cost prices drastically change over the last few months. There are factors that apply to all materials. There have been some very specific events that have directly applied to packaging material though.

This deliberately short report explains how Packaging has been affected – and what will likely happen over the next few months. We look at material costs, import prices and other key factors, providing links to the data.

Material Costs

Corrugated – Fred Economic Data

Affects corrugated such as cartons, layer pads and other paper-based products.

The Corrugated and Solid Fiber Box index has seen the sharpest increase of all, rising rapidly since Dec 2020 / Jan 2021. This is still set to rise further and whilst most companies have already increased prices late Jan / Feb as the impact set in, its likely that prices will go up again as the steady increase is absorbed.

Packaging Film – Fred Economic Data

Affects plastics such as film, strap, bags and covers.

Increases in packaging film are even more striking than those on corrugated. Many packaging prices will have gone up Jan / Feb as pricing has been going up since August 2020. It is inevitable that there will be further sharp increases as the effect of Feb / Mar pricing sets in and stock at old prices is used up. These are likely to set in Early May.

World Container Index  – Drewry WCI

Affects all imported products, mostly tape, strap, machine film and hand wrap but other items apply.

Increases in the cost of importing a container are on top of the material increases already covered in this report. As the World Container Index is set to come back down, Plus Packaging have applied a tariff that will rise or fall with the above index.

Other Factors

Covid

The main effect of the pandemic on packaging has been in consumer buying habits. A huge surge in buy on-line for a wider variety of products, this applying largely to Amazon has increased demand far beyond current supply chains could cope with. This led inevitably to material scarcity and the increase in costs that always follows.

Covid also slowed down raw material production. This happened along with the surge in demand for on-line items.

Brexit

Brexit has had a short-term effect in confidence, disruption at port with new legislation requirements and uncertainty in supply. There have been cases of over-compensating on prices for perceived disruption which contribute to costs going up.

Summary

Short Term

Many increases will have already been implemented and absorbed, not only on packaging but materials across the board. What we see in the indexes above is an inevitable further round of increases, likely to start Early May on-wards. Whilst the timing and exact percentage may differ across products the fact that the costs have gone up cannot be avoided.

Mid Term

By mid-year, the stock coming into Packaging companies will be at its peak of cost – all stock bought in at old rates will have gone. Price reviews in catalogues, on-line and with customer order books are likely as companies try to offer firm, reliable pricing for the rest of the year.

Long Term

Long term predictions in our current circumstances are at best hopeful! Even if the various spikes in material costs start to come down, the stock in the industries warehouses is likely to last until the end of the year. It is worth monitoring the indexes to see how that pans out.

Plus Promise

11/4 Delivery Service Expanded!

Order items from our catalogue before 11am and receive your delivery before 4pm the same day.

Order items from our catalogue before 4pm and receive your delivery before 11am the next working day!

Applies to L,  M17, WA & CH41-CH66 postcodes.

Roll out to continue throughout 2021.

Watch the below video with our Ops Director to find out more about our promise.

 

ORDER NOW

COVID-19 Clear Off – Two week SALE!

 

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Plus Promise

11/4 Delivery Service Launched!

Order items from our catalogue before 11am and receive your delivery before 4pm the same day.

Order items from our catalogue before 4pm and receive your delivery before 11am the next working day!

Applies to L, WA & CH41-CH66 postcodes.

Roll out to continue throughout 2021.

Watch the below video with our Ops Director to find out more about our promise.

 

ORDER NOW

Special Offers

Check out our latest Special Offers here!

      

Download PDF:

Mar-Apr Offers FINAL

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