During the past weeks and months, extraordinary effects on a global scale have increased inflationary pressure, which has led to a significant upward impact on production costs for Xsys’s equipment.
The core priority for Xsysis to deal with significant shortages across materials used to produce components and housing for ThermoFlexX imagers and Catena processing equipment. The material cost already increased by 10–20% in 2021, with no indication for recovery throughout 2022. In particular, Xsysis experiencing significant cost increases across the following inputs and materials –
Steel and plastics – Global shortages have caused price increases of at least 15% in 2021
Electronics – Global shortages and supply chain issues resulted in double-digit price increases in 2021, and price increases have already been announced for 2022
Energy – Soaring gas and electricity prices are increasing production costs for the company and its suppliers
Logistics – Sea and land freight costs have increased not only for direct shipments to the customers of Xsys but also indirectly, further contributing to inflation of all input materials.
Xsys comments on the price increase for ThermoFlexX products
While some inflationary developments can be absorbed by implementing efficiency improvements as well as qualifying alternative suppliers, extraordinary and persistent inflation levels now leave Xsys no other option than to implement a price increase of 10–15% across the ThermoFlexX imagers and ThermoFlexX Catena equipment, as well as on spare parts and service agreements.
Friedrich von Rechteren, Global Commercial vice president at the company, concludes, “We understand that this price increase adds pressure to our customers’ business during these difficult circumstances. It has not been an easy choice for us to make. However, to ensure consistent and reliable supply to our customers, we see no other way than passing on some of these costs.”
The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.
A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has
demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.
As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.
The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.
Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.
In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what
you need. Speak and write to our editorial and advertising teams!
For advertisement email@example.com , for editorial firstname.lastname@example.org and for subscriptions email@example.com