{"id":12164,"date":"2022-04-13T12:24:00","date_gmt":"2022-04-13T10:24:00","guid":{"rendered":"https:\/\/robos-labels.com\/?p=12164"},"modified":"2024-03-22T09:06:50","modified_gmt":"2024-03-22T08:06:50","slug":"the-market-situation-for-labeling-in-the-2-quarter","status":"publish","type":"post","link":"https:\/\/robos-labels.com\/en\/the-market-situation-for-labeling-in-the-2-quarter\/","title":{"rendered":"The market situation for labeling in the 2. quarter"},"content":{"rendered":"\t\t
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The market situation in the labeling industry remains tight. <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The first quarter of 2022 picked up where the last quarter of 2021 left off \u2013 restrictions in the delivery chain, material shortage, spiraling energy- and raw material prices and now the aggressive war in the middle of Europe also.<\/span><\/p>

The market situation of our labeling industry remains very tight and we recognize it as fundamentally important to inform you about it continuously and openly.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\"Purchasing
Purchasing price increases for necessary materials, goods and services for the manufacturing of labels.<\/figcaption><\/figure><\/div>\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The completed calendar year has brought to our company the never known before price adjustments, which we tried to compensate for several months, but finally had to pass them on because the pressure emerged hereby became existence-threatening. Currently we can report weekly about new and re-increasing purchasing prices, which is why we cannot foresee the end, not to speak of a turning trend for our selling prices.<\/span><\/p>

In our opinion, the delivery capability as well as plannability of our customers are of highest priority, for that reason we would like to keep on providing information to backgrounds and effects, but especially recommendations for action to solve or to bridge the current situation.<\/span><\/p>

Backgrounds:\u00a0<\/b><\/p>

A strike in important paper factories in Finland has not been settled yet. However, numerous material manufacturers are affected directly with paper materials or indirectly via paper liner. The Finnish paper factories usually cover a not insignificant share of the European need; that is why the impact will be classified as significant. (You can find further information here: <\/span>https:\/\/www.euwid-verpackung.de\/news\/unternehmen\/streik-in-den-finnischen-papierfabriken-von-upm-verlaengert-sich-weiter-bis-ende-april-010422\/<\/span><\/a>)<\/span><\/p>

The effects of corona pandemic are also still clearly noticeable. In the past calendar year these effects slowed down the overall German industry due to the shortage of input factors, this means raw materials and preliminary products. Due to multiple worldwide lockdowns not only the manufacturing of preliminary products, but also all delivery chains have come out of sync, which results in a general shortage of raw materials. This effect will be potentiated by the war in Ukraine in the spring of 2022, because this war not only negatively affects further delivery chains, but is also accompanied by a significant increase of energy costs as well as transportation shortage, because the inner-European market lacks approx. 1 million drivers from Ukraine.\u00a0 You can find further information here: <\/span>https:\/\/www.destatis.de\/DE\/Methoden\/WISTA-Wirtschaft-und-Statistik\/2022\/01\/lieferengpaesse-012022.pdf?__blob=publicationFile<\/span><\/a><\/p>

Effects:\u00a0<\/b><\/p>

In first place, the presented challenges have an impact on the existing offer of preliminary products and raw materials, which is far smaller than the current worldwide demand. By that on the one hand dramatic delivery times have been established, and on the other hand resulted in permanently increasing prices. The average delivery time for films is 18 weeks, for papers 20 weeks. The paper prices rose within the last 12 months by 60 % and films during the same period of time by round 50%. Additionally, there are permanently increasing energy- and transportation costs. We expect this trend to continue in the coming months as well. <\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Measures:\u00a0<\/b><\/p>

Numerous measures have already been implemented in last 10 months. These include:<\/span><\/p>