Corrugated paper and packaging costs are higher. Why?
- Consolidation reached a tipping point in early 2008
“International Paper said on Monday that it had agreed to acquire Weyerhaeuser’s packaging business for $6 billion to become North America’s largest maker of corrugated boxes.” [The New York Times – 03/18/2008]
- The number of companies managing production has decreased
- Since 2008 the number of plants has declined nearly 12%
- Paper mills have perfected scheduled mill downtime to control supply
- Paper prices increased
“The …(AICC) in a press release today blasted the third announced North American containerboard price increases as an "unnecessary burden" on independent converters and box customers.” [PPI Pulp & Paper - 07/14/2010]
- Packaging prices increased and exceeded the increased cost of the raw materials
- Packaging converters increased their margins
- Box buyers work to reduce prices by using “blind” bid requests without access to costs
What does this mean?
- Over 90% of companies using corrugated packaging are overpaying by as much as 30%
- Higher costs mean American companies struggle to remain globally competitive
But Can your Company Change This?
- Read on to see how we help companies get lower prices while supporting their suppliers
Who do we help with this problem?
We work with 3 main types of clients:
We’ve helped over 1,000 companies lower their box prices, and we can help yours too.Contact Us Today!