Continued Market Demands Affect Corrugated Material Prices
Similar to last Spring and Fall, corrugated material prices, in particular, containerboard, are on the rise. Containerboard, used to manufacture corrugated, is experiencing price hikes, again, due to both an increase in consumer demand and continued supply chain challenges. As is the case with the past several increases, this cost trajectory is not exclusive to the corrugated industry as fuel, lumber, plastics, and other commodities have continued to increase. Even the Old Corrugated Container (OCC) market experienced a significant demand increase. According to American Forest & Paper Association (AF&PA) in a recent Waste Dive article, OCC demand reached record levels in 2021, mills consuming 24.3 million tons (6.8% increase over 2020).
What does this all mean for corrugated consumers? Yes, another price adjustment, like many other products & services in today’s economy. A recent AICC Economic Report notes that the consumer price index rose 7.9% over the past 12 months, the largest increase since 1982. So, while certainly not unique, all corrugated customers are feeling containerboard price increases, including our own.
Transparency & partnership key to all relationships, as always, we are here to continue navigating these waters together. To that end, we thought it important to revisit ways we can collaborate and innovate together to help offset price increases.
- By increasing quantities per order, prices per unit will decrease, without adding additional labor or resources
- Higher efficiency per run
- Right-size packaging to limit waste and reduce space and freight costs
- Revisit flute structures, cutting unnecessary weight and materials, fitting more per truckload
- SKU consolidation and simplification
- Site visits to analyze packaging operations and find gaps for savings
- Finishing and Assembly Capabilities to remove steps from your team and limit additional materials
- Enhancing production efficiencies and runs
Our team is ready to work with and for you, contact us to discuss innovative ways to help offset costs.
About Rusken: Rusken is a dynamic, modern integrated packaging company with locations throughout the Southeast United States. With fifteen (15) facilities in eight (8) states, Rusken is a forward-looking regional organization. Headquartered in Cullman, Alabama, Rusken has experienced exponential growth over the last decade. This success is driven by an entrepreneurial spirit, focus on family-based values and a commitment to a truly remarkable customer experience. From standard corrugated boxes to highly customized packaging solutions that require robust design-work, colorful printing and hand finishing, the good people behind the Rusken name are passionate about quality, delivery and customer smiles.