CORRUGATED IS IN VERY HIGH DEMAND

blog offset rising corrugated price increases shorr packaging

Solutions to Work Around the Rising Cost

HOW IT STARTED:
Corrugated industry typically plans for approximately 2% growth during peak times. By March 2020 actual shipments were already up by 3.4%

HOW IT’S GOING:
By December 2020 actual shipments leapt to a historical high of 11.4%. That is approximately 400% higher than anyone anticipated.

THE USUAL MARKETING DRIVERS:
Seasonality: Box demand peaks in September as holiday merchandise lands in stores**

Price/Sustainability: Consumers/manufacturers/ government have continual desire for cost-effective, environmentally friendly packaging solutions***

MARKETING DRIVERS NOW:
E-commerce Expansion: As a result of COVID-19:

  • Consumers turned to e-commerce — activating two years’ worth of growth in a short time
  • Box demand prematurely hit above peak levels by March of 2020 and continued climbing
  • Box industry is in overdrive:

                   – Paper mills running at full speed
                   – Producers capping orders
                   – E-retailers and brick-and-mortar stores adapting to delivery****

We’re Tracking The Marketing Changes
Between June & October, box shipments met 34 billion square feet — an industry record each month **

  • The containerboard industry hiked prices by $50 per ton on the shipments in November**
  • An even higher price hike in the first half of 2021 is expected — anticipated even more e-commerce demand**

Shorr Has The Solutions To Mitigate Rising Costs
Automation — achieve growth and savings through customized automation solutions that will ramp up the volume to increase your output and decrease costs per order without adding labor.

STAMP Analysis — a step-by-step procedure that identifies “gaps” between your current packaging operations and your goals. We examine all areas of your packaging process to identify prime areas for packaging optimization.

Carton Right-Sizing — a precise and robust approach to uncover opportunities for improvements and noticeable cost savings.

  • Freight Savings
  • DIM Weight
  • SKU Count
  • Void Fill Reduction

WE HELP UNCOVER SAVINGS WHERE IT MAKES SENSE FOR YOU

  • Inventory Management + Just-In-Time Programs
  • Contract Packaging + Kitting
  • Packaging + Material Redesign
  • SKU Justification + Rationalization

If we could do any of this for your organization, wouldn’t that be worth a call? 888-885-0055

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