Heard in the Channel: Paper and Packaging Prices on the Rise

Sept. 30, 2014
Buyers advised to shop around for the best price as prices for corrugated boxes, fiber packaging, and packaging services increase through 2017; plus, news from Avnet, SPI, Tooling U-SME, ISRI, element14, and Rutronik.

Paper and packaging prices are on the rise, affecting buyers in various markets, according to a new report from IBISWorld. From now through 2017, the global price of wood pulp is expected to rise at an annualized rate of 1%, and the price of paper is predicted to increase at an annualized rate of 2.1%, the group says, advising buyers to sharpen their focus on searching for the best price.

Markets affected by the price increases include corrugated boxes (estimated to rise at 3% annually until 2017), molded fiber packaging (rising annually at 4.2%), and packaging services (rising annually at 2.5%). IBISWorld points to changing consumer buying habits despite today’s shift from a pen and paper to an online world.

Consumer shopping trends are driving the demand for shipping materials and services, the report says, causing suppliers’ input costs to go up. What’s more, wood pulp prices will continue to rise along with increasing construction and industrial activity. Additionally, in the next three years, the per capita disposable income is expected to increase at an annualized 2.4%, increasing the demand for packing materials due to consumer buying trends.

Corrugated boxes are used for packaging for shipping and storing consumer goods and industrial tools and equipment. The rising price of paper will in turn force operators to increase box price in order to maintain profit margins. This poses a problem for buyers since substitutes for these boxes are limited. IBISWorld suggests taking advantage of low market specialization and low costs to change vendors—buyers can leverage the large amount of suppliers to encourage price competition.  

In other industry news:

  • Avnet has entered into a distribution agreement with EchoStreams Innovative Solutions, LLC—provider of server and storage solutions. Additionally, Avnet announced that its chief global logistics and operations officer, Mike Buseman, will present at the SCOPE Supply Chain Operators Fall conference—being held in Las Vegas, October 5-7. His session “Cultivating a Lean Supply Chain” will take place on Monday, October 6 at 9 a.m.
  • PlasticsU is a new online training site to address the manufacturing industry’s challenges and needs. The site was launched by SPI: The Plastics Industry Trade Association and Tooling U-SME. Additionally, SPI has partnered with Meadoworks to launch a new program to eliminate waste and bring new life to existing resources. The program is called Capital Asset Management Services.
  • The Institute of Scrap Recycling Industries (ISRI) is calling for entries for the 2015 Design for Recycling Award. The deadline for submissions is January 31, 2015, and more information on requirements can be found here.
  • element14 has announced its PSoC 4 Challenge. Interested competitors can submit their idea for enhancing the home, office, or car by using the PSoC4. Winners will receive $500 to turn their ideas into reality.
  • The Embedded Design Show will be held at the Ricoh Arena in Coventry, England, October 22-23, 2014. The show will be co-located with the Electronics Design Show and Engineering Design Show. 
  • Rutronik Elektronische Bauelemente GmbH will exhibit its components at electronica. They will display in Hall A5, Booth 159 and 260 under the motto: “Meet tomorrow now!” Rutronik will have products from both its Embedded and Smart lines.


Avnet X-fest

Montreal: October 1, 2014
                   Dorval, Québec

Vancouver: October 7, 2014
                      Burnaby, British Columbia

Chicago: October 22, 2014
                 Hoffman Estates, IL

SCOPE Supply Chain Operators Fall Conference
October 5-7, 2014
Las Vegas, NV

Embedded Design Show
October 22-23, 2014
Coventry, England

2014 ECIA Executive Conference
October 26-28, 2014
Rosemont, IL

November 11-14, 2014
Munich, Germany

2014 NAED Eastern Region Conference
November 10-12, 2014
Marco Island, FL

Avoidance and Visual Indicators of Counterfeit Parts for Management
November 12, 2014
Online Training Course Sponsored by IDEA

ISM Indirect Procurement Conference
December 3-4, 2014
Phoenix, AZ

Quality and Reliability Technical Symposium
March 23-25, 2015
Mesa, AZ

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