31 Dec In a time of industry contraction, Ronpak stands firmly committed to its product, its clients and its people.
From lower exchange rates to pulp price hikes, the paper products manufacturing sector has been getting squeezed lately.
But even as market swings push out other paper products companies, Ronpak continues to hold its position as an industry leader - well known for its sustainable manufacturing practices and management that's focused on the future.
Over the last several years, the pulp & kraft paper products industry at large has been experiencing higher prices in its supply chain from a “perfect storm” of industry conditions not only here in the United States, but world-wide as well. Market drivers such as an increased wood pulp price, higher freight costs and mill pricing increases have all contributed to some serious supply changes for the multitude of paper manufacturing players in the space.
So what constitutes a "perfect storm"?
Wood pulp prices increased another $15/tonne in November 2018, up 19% YTD.
Pulp prices have increased 52% since the bottom of the last cycle in 2016, to currency exchange rates.
Beginning in February 2017, pulp prices began to increase steadily. According to the US Bureau of Labor Statistics, the Producer Price Index for pulp, paper, and allied products has risen from 167.4 in February of 2017 to 212.4 in March of 2018. This increase of over 25% is not expected to slow down.
Paper mills themselves continue to assign high freight premiums for faraway destinations. Paper mill order lead times have been reduced for most paper grades as 2018 draws to a close. Price shifts of paper supply seems to be constantly in flux, forcing paper producers to either cut back on their capacity, OR convert to more profitable product offerings rather than see price take a hit next year.
When fewer paper grades and/or weight options are available, the risk of supply is higher and mid-stream grade, brand, and basis weight changes are even more difficult. The key to competitive paper pricing is lowering the total cost of the supply chain instead.
Don’t forget that ever longer lead times have in some cases simply shut down other smaller mills.
It’s not all bad news though. Paper won't disappear anytime soon.
In fact, recent polls showed that 88% of respondents felt that they understood, retained or used information better when they read it in print.
80% had a strong preference for reading over more complex content in print, contrasting to 13% for computer screen usage and finally 3% for smartphone viewing.
Even in the midst of these economic and global supply-chain challenges, Ronpak has continued to stand the test of time as the preeminent Kraft and bleached paper bag product manufacturer for national clients requiring top quality specialty restaurant carry-out bags, portion control bags, baked good or food service wraps, lunch bags, pharmacy and convenience & liquor store paper bags.
Since 1947, Ronpak has pushed the envelope of what the humble paper bag can become. With several manufacturing facilities in Shreveport, LA (Corporate headquarters), South Plainfield, NJ and Mira Loma, CA, Ronpak features over 300,000 square feet of manufacturing able to provide efficient distribution to all parts of the country.
With the most advanced production and distribution platforms in the paper products industry, Ronpak is your complete solution in the custom printed food and product-packaging industry today.
