Price Decrease on Globe Guard Eco Friendly Corrugated Boxes

by: Dennis Salazar

26 May 2009

Eco Friendly Globe Guard Corrugated Boxes

The corrugated industry has experienced three significant price decreases since the first of the year. As a result, we have reduced our prices on Globe Guard eco friendly content corrugated boxes. What is a tough time in the corrugated business can be a great time for a green minded company to change over to green boxes and reduce their cost in the process.

Why is Sustainable Packaging Less Expensive Now?

Linerboard pricing has been on a slow decline since the fourth quarter of 2008. Even though our boxes are made of 100% PCW and not new linerboard, there is a direct correlation between the two. Remember a linerboard decrease only affects less than one half of the overall cost since it does not directly impact labor, transportation, etc. As a result, it takes a while for small incremental linerboard decreases to add up but today you could see pricing that is 5 to 6% lower than it was just a few months ago. That is not a huge drop but I am sure everyone could use some good news in times like this.

The Green Packaging Outlook Short Term

down-graph Indications are that the free fall of board pricing is far from over. Some industry experts are predicting pricing could drop another 5 to 10% before the bleeding stops. Of course there are no guarantees one way or the other, but with many corrugated sheet plants and converters reporting decreases in business of 10 to 15%, the market is becoming incredibly competitive. Oh, you may also be interested to know that another major influence is corrugated exports, which are down 40% from where they were a year ago. All things considered, the downturn in pricing is likely to continue.

The Green Packaging Outlook Long Term

Long term most industry people agree corrugated manufacturers will do what they and every other industry have ever done in times like this. They will control and limit capacity. A few unprofitable plants have already shut down and others have cut back production because it makes no sense to make what you cannot sell. The law of supply and demand is there to protect the interests of the seller as well as the buyer so we can be sure this decline will come to an end one way or another.

What Does This Mean for Your Sustainable Packaging Objectives?

Cost is no longer a real and legitimate reason to not use eco friendly corrugated boxes to ship your eco friendly products. The cost gap between standard corrugated board and 100% PCW has eroded to the point of being non-existent. Check out our new, lower box prices on our eco friendly packaging store, www.GlobeGuardProducts.com, and you’ll see pricing that is competitive with anyone and quality that is second to none.