Page 13 - BOSS Today Issue 51

BOSS Today #51

that we’ve all been seeing throughout and May, with significant improvements
the COVID-19 crisis”. Indeed, Wilson likely in H2, as Betts points out: “We’re
agrees that it is “100% an opportunity for clearly not sending as many masks around
domestic manufacturers. We have been the world as we did at the start of the
trying to encourage our suppliers to move COVID-19 crisis. It’s now just a question of
to onshore or near shore production to try pulling the PPE stock out of the containers
and reduce the impact of this. Indeed, 12 as it is needed, and the container supply
months ago, when the whole world fell off will then become freer.” “Price increases have been
a cliff, a lot of suppliers did reconsider their At which time, of course, many UK impacting less than 5% of
reliance on China as a production centre. companies will be starting to plan for
I would certainly like to see production Chinese New Year 2022, while perhaps our range, and the size of
coming back, if not to the UK, then echoing Steve Haworth’s heartfelt plea: the increase depends on the
certainly to a European manufacturing “Can we have a period of quiet now?
base. While China will still offer a lower Can we have a year where we don’t have percentage of the landed
labour cost advantage, if freight prices do to have emergency crisis meetings and cost price that is accounted
stay high it’s going to make it difficult to can just think about buying and selling for by freight costs, which
justify moving production back to China, stuff and trying to do a good job for our
not least because doing so increases the customers? That would be great!” in turn depends on the size
uncertainty of supply.” and value of the product.”
Welcome good news, then, for Europe’s Martin Wilde – the author of this article - is
beleaguered manufacturing base. Good Managing Director of OP market research Nick Wilson, CFO Euroffice
news also is that this ‘perfect storm’ is specialists Martin Wilde Associates Ltd
widely expected to start to ease in April (www.martinwildeassociates.com).

Plastics Pricing

The plastics industry is currently experiencing a major crisis.

BOSS Today has become aware of talk States have blocked the production Indeed, the concern is no longer to
of big cost increases in the plastics used of millions of tons of polymers and know at what price conditions the
in many office products. We have asked stopped all exports of material to next supply of plastic material will
members to contribute their thoughts Europe. take place, but to what extent the next
to this debate and Hamelin has also n The recovery of economic activity supply can take place at all.
shared the situation that they faces, in Asia has led to a strong demand Over the last couple of months,
which it has already disclosed to its for polymers, and the resulting Hamelin has been piloting an action
customers: price surge is making this region plan with its factories to prevent this
The worldwide plastics market is increasingly attractive to granule shortage phenomenon from causing
facing an unprecedented shortage of producers. customers any harm. However, the
polypropylene (PP) and PVC materials, n The numerous maintenance sudden worsening of the situation,
which has already become critical and is shutdowns planned for the spring especially regarding the significant
getting worse every day: by European oil refineries will add to price evolution, puts the company in
the force majeure cases already in a situation of force majeure, noting
n Resin manufacturers have been place since the beginning of the year. “We have no choice but to implement
reducing the volumes usually significant price increases with
allocated to the European market This extraordinary context, where immediate effect and we cannot be
for several months, either through drastic rationing has been imposed made liable for potential delays of our
obligation or by choice. on all market players, has caused a deliveries caused by the lack of raw
n The winter storms in the United dramatic increase in market prices. material.”

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