The last 20 years has seen consumers and businesses alike making huge changes to protect the environment – awareness of global green issues and their impact is at an all time high, and so is legislation to manage these issues. In the packaging industry, this can be seen particularly clearly; polythene, such an exciting invention in the last century, is now sometimes seen as an unpopular and environmentally unsound material. Paper meanwhile (theoretically so much more sustainable), is the biodegradable answer to many people’s prayers. But it doesn’t take an Economics professor to see the problem this creates – supply and demand are out of balance, and in terms of the current paper market it’s not just a little off, its a problem of unprecedented proportions; a global paper shortage.
This means that businesses like ours, who sell paper sacks and bags as a major part of their core business, face a two-fold challenge – rising prices and short supply. We depend on our reputation for fast and efficient service, and reasonable prices for orders of all sizes, so how can we tame this particular problem for our customers?
In theory the answer is that we can’t – predicted percentage price rises are potentially very high, and if we can’t physically lay hands on stock, we’re as stuck as everyone else! However we’ve put serious consideration into how to handle this, and this is what we’ve decided:
Prices will stay competitive, for orders of all sizes
We are a small business and so are many of our customers. For this reason we’re aware of how price rises that look small to big companies can mean the difference between profit and loss for small ones. We will have to raise our prices in order to supply the paper sacks our customers need. However those rises will only be in proportion to costs, and will be thought out to ensure our sacks still represent good value for money, from a single pack to pallets of thousands.
We’ll keep our customers informed if the situation changes
Our current supply of paper sacks is reliable and we’re told that for the time being there will be no interruption to our usual service. However, industry reports are certainly suggesting that we can’t rule out longer lead times for manufacture. If this does end up affecting our supply, we will keep our customers updated and be proactive in letting you know if it might be wise to stock up. Similarly, if we discover the crisis is over, we will pass this on too, ensuring you know everything you need to about lead times, prices and future developments.
We hope this will keep things running as usual as the shortage hits, and we’ll update this blog if anything changes too. If you’d like to discuss the effects this might have on you as a customer, do give us a call on 01603 722264.