Packaging Market Pricing Impacted by Devastating Storms

This year’s severe hurricane season has affected many communities and industries – especially manufacturers throughout the Gulf Coast region. Due to production slowdowns/stoppages at impacted facilities, poly-based product manufacturers (bags, film, tape, etc.) are pushing for a 4-8% price increase, and several copy paper manufacturers (Domtar, Boise Paper, Navigator) have announced a 5% price increase.

At this point, some suppliers are estimating that it could take 30-60 days for production levels to normalize. However, this timeline is tentative as facilities could need more time for production to recover.

Clients who rely on suppliers that are impacted by this market condition (especially office supplies, packaging materials, and chemicals/petroleum) are advised to contact their supplier(s) and place orders as soon as possible to get ahead of the price increases. It is also worth noting that clients likely will have to place regular-sized orders, as many suppliers won’t allow a larger than typical order to lock in pricing ahead of the increase.

Once production levels begin to normalize, it is likely that supplier pricing will also even out and return closer to pre-slowdown pricing. You will want to monitor your pricing and contact suppliers to ensure your prices are fair and reasonable, both now and once production is back online. 

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