Post-COVID, global economic GDP is expected to rebound by +5.1% in 2021. This growth drives high demand for raw materials across various industries. In addition, bottlenecks in the global supply chain remain as high as during the pandemic peak, say a Bobst release addressed to its customers.
“In these circumstances, raw materials for the packaging industry and some key materials required for the production and maintenance of equipment, including standard components across electronics, electrical bearings, and consumables, are in short supply generating longer lead times and price increases.
“The hot-rolled steel plate price hit record prices across all exchange markets, increasing by more than 120% over the last three quarters (2).
“So far, we have been able to maximize our production capabilities reflecting the orders we received. We managed our parts inventories to avoid shortages. The new stock replenishments are, however, for the foreseeable future, going to be made at much higher costs.
“We need to ensure business continuity and consider these new and unexpected market fluctuations. As of 1 July 2021, a price increase of 2% on machines and related peripherals will be rolled out across all countries. Spare parts and services are excluded from this general increase.”
Bobst statement on shaping the future of packaging
“Given the current circumstances and the market volatility, when a crisis turns into such a recovery, we must toggle between managing for the present and the future. We are planning for the long term with new forecasting and planning methodologies, but at the same time, we need to cope with immediate global market constraints,” commented Jean-Pascal Bobst, CEO of Bobst Group.
“Our local sales representatives will ensure that all customers will be informed individually to provide transparency, as we are all impacted by this special situation.
“The global recovery is positive, and it requires adjustments for the packaging industry. We will continue to shape the future of packaging together.”