13 Sep 2016 Corrugated Box Increase Coming!
It has been over three years since the corrugated industry has had an increase so it should not be a total surprise, and I don’t want to be guilty of sounding a false or premature alarm, but it presently looks like an increase is inevitable and imminent.
This is NOT a Formal Increase Announcement…Yet.
All domestic corrugated sheet manufacturers have been announcing increases of between 8 and 10% and it is beginning to trickle down to the companies that make corrugated boxes from that higher priced board. Some stock box suppliers have already announced a 10% increase but we are not there yet. It is our intention to resist and delay any increase as long as possible and not put through an increase that hopefully might be rescinded in part or in whole.
So we are all in a wait-and-see mode and keep in mind, I could be wrong. Please see the bottom related post below where in May 2013 I warned of an increase that was later rolled back. However, now I think an increase is really overdue and the mills are going to get something.
No one likes to see rising prices but I am equally concerned about what this can do to lead times as we head into the busiest time of the packaging year. Any increase, especially a large one can and will cause extended lead times.
Our Advice to All Friends and Customers
Not knowing exactly when an increase on boxes is going to be announced and enforced, my suggestion is to not wait to place any year end or holiday order you may be contemplating. If you wait until the increase becomes fact, it will probably already be too late and the normal lead time could jump quickly from a fairly predictable one to two weeks to as much as four weeks or even more. There will be a big buy-in to avoid any increase and that will make the production line a long one.
Please do not hesitate to contact us at Salazar Packaging or call us at 630-551-1700 if you have any questions. We may not have all the answers regarding this industry wide increase but I can assure you we will do everything possible to minimize the negative impact on you and your business.