Raw material price hikes hit equipment suppliers

Related tags United kingdom

A majority of material and container manufacturers feel that
rationalising their supplier bases across Europe is necessary to
combat raw material price increases, according to a recent survey.

The report, carried out by Pira International, suggested that percentage decreases could range over a three-year period from between 10 per cent to more than 50 per cent.

However, strategic alliances with suppliers were also seen as a method of combating raw material price increases in the packaging materials area, while other advantages included securing quality and the ability to create better buyer/supplier relationships on both a pan-European and global supply basis.

But a shift in emphasis away from just price to a growing need for quality and reliability, price continues to be the key packaging concern for the majority of packaging users, followed by legislative compliance and less damage to packs. The main buying criteria among material and container purchasers were quality followed by reliability and price.

The buying habits of retailers is particularly important in Europe's four major markets - Germany France Italy and UK - where a very few leading retailers in each market dominate to the tune of a 70 to 80 per cent share. It is therefore interesting to note that for a number of the UK's major retailers the most important buying criteria were quality and fitness for purpose, legislative compliance, minimisation and innovation.

There was also considerable support - 72 per cent - for buying direct from companies based outside the UK. The key provisos were UK-based services and spares and UK-based technical advice.

Pira International's​ study on the buying behaviour of packer/fillers in the UK was conducted independently on behalf of Total Processing & Packaging 2004. The researchers interviewed 165 packaging professionals from end user companies to assess current and future trends, and analyse the major influences on buying behaviour.

Related topics Processing & Packaging

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