A Year of Ups and Downs for the Packaging Industry
2021 created upheaval within the entire packaging industry. The shortage of skilled labor in some regions, on top of unprecedented price rises in paper, board and flexible substrates, has created unexpected challenges and uncertainties for many.
The price increase of source materials was tremendous. For instance, raw material used for machine frames and components increased unexpectedly as did hot rolled steel plate, which increased by 119% since January 2020. Cold rolled steel plate increased by 126%1. Structural section and beams increased by 91%. Aluminum alloy by 75% and copper by 65%1. Raw material usage for mechanical components (LLDPE Resins, nickel, polyurethan, etc.) increased by more than 40% since September 2020 and materials used for commercial parts (belt, chains, lubricants, rolls, etc.) increased on average by 9%1. Freight also increased since August 2020 — sea by 216%, air by 200% and road by 5%1.