What do gasoline and packaging have in common? You guessed it – high prices. Unfortunately, the cost of many everyday purchases appears to rise significantly, and packaging prices are not immune to this. The domino effect of inflation can be seen with nearly every step of the packaging process, leaving many people wondering what exactly is happening and how long will the price spike last.
We understand the stress and challenge rising prices poses to budgeting and executing your end goal. Unfortunately, our world is still recovering from the traumatic impact of pandemic shutdowns and the many different regulation changes affecting the normal flow of pre-pandemic life.
Here’s a peek at exactly what’s going on and how it is impacting the cost of packaging:
Global Supply Chain
Strict lockdowns across the globe, along with the trucking industry protesting, have majorly impacted the supply chain. Everyday consumers and businesses are getting hurt the most after the global pandemic hit and disrupted the supply chain.
As a predictable result, the prices of goods and services have soared, not only food and other products, but the packaging of these items. The only way to grapple with this reality is to continue to make necessary adjustments, and with time, prices are likely to recalibrate to an improved state.
Packaging Prices react to the rising cost of products; packaging costs have to keep up with the cost of the products they contain. The wildfire chain reaction of rising costs instantaneously impacts amounts charged for packaging. Unfortunately, every part of the packaging and shipping process must rise along with the other expenses; this is the only way businesses can have a chance at continuing to stay in business.
Sluggish Pandemic Recovery Time
Recovery times are slow due to the globally dependent supply chain. The bottom costs for consumers, whether online or in-person checkouts, rely on the broader issues causing this problem. We rely heavily on other countries, and the various levels of shutdowns and regulations have made it challenging to be on the same page as before with scheduling and anticipated costs.
Packaging Costs are an Unfortunate Reality
These packaging prices and supply issues are a part of living in an imperfect world. We go through times of low cost with easy management of packaging and shipping, and sometimes we don’t. Right now, everyone is feeling the hit of increasing prices everywhere; this happens for all the above reasons, as well as the Ukraine war.
It is hard to find a person on the planet who has not felt the effects of the 2020 pandemic. Unfortunately, it is a shared reality by everyone, and not only because of the pandemic but so many other worldwide political issues that have occurred since.
The PackFlow℠ Analysis – Optimize Operations and Reduce Cost
Pioneer Packaging can help you stay ahead of the ever-changing pricing supply chain issues. Our PackFlow Analysis engages in an extensive pre-and post- packaging analysis to evaluate the logistics, handling, assembly, and integration of your business. In short, we help you make cost-saving improvements in your business’s productivity.
Even minor tweaks in the packaging process can lead to saving money – potentially hundreds of thousands of dollars. Our Packflow℠ analysis delves into settings, materials, and processes used on our production lines, optimizing them to achieve the best results. It’s like a controlled experiment, in which we run a roll of packaging film that’s different than our current film. We then compare a series of benchmarks to determine the best ways to decrease packaging prices by improving efficiency and your bottom line.
Pioneer Packaging Keeps Your Brand On the Move
For over 35 years, Pioneer Packaging has been the go-to source for quality packaging solutions. Our creative designers work closely with you to ensure your brand is recognized for quality in packaging design and materials.
So whether you’re looking to highlight your sustainability or attract new consumers, we can create a design fit for you. In addition, we strive to keep costs down as much as possible to help our customers keep their brands moving along production lines. Contact Pioneer Packaging today and learn why we’re a leader in packaging innovation.