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Focus on shipping containers and packaging

By Staff -- Logistics Management, 10/1/2003

The prices you pay for shipping containers and packaging may not have increased much yet, but that could soon change. The reason lies in an upsurge in production costs for those items. Over the last 12 months, 22 of the 46 industries that make paper, packaging, and shipping supplies have been unable to fully pass along manufacturing cost increases to their customers. For many, that has led to significant margin declines. In fact, 14 industries suffered losses greater than $1 for every $100 of product sold. Producers of printing inks, paper bags, cordage and twine, adhesive labels, wooden pallets, and plastic foam all would need price hikes ranging from 2.3% to 6.8% to restore margins to five-year averages. While it appears unlikely that price hikes will stick, the pressure is on … so buyers beware.

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