As we move through another dynamic period for global supply chains and manufacturing, we wanted to share a brief update on Smartlift, covering several key factors currently affecting the packaging industry and how our company is responding.
Global Conflict and Market Uncertainty
Ongoing geopolitical conflicts (the Iran war in particular) continue to influence global energy costs, transportation routes, and raw material availability. These disruptions are affecting manufacturing industries worldwide, including packaging. While the situation remains unpredictable, we are closely monitoring supply chain risks and working with our suppliers to maintain stability. Producers are struggling to secure raw material as India is prioritising oil for domestic fuel rather than manufacturing.
Price Increases
Due to the continued pressure on raw materials, energy, logistics, and labour costs. price adjustments across the packaging sector remain unavoidable. Materials such as paper, board, plastics, and adhesives have seen significant cost fluctuations. We are committed to keeping increases as minimal as possible while maintaining the quality and reliability. Throughout the years, Smartlift has managed to absorb sudden price spikes without having to go back to the market ‘cap in hand’ on existing contracts.
Due to raw material increasing by 60% over a two week period and the lack of raw material available. Contracts agreed with our customers prior to the conflict starting in Iran and the Middle East, may need to be reviewed. We will be in touch with individual customers to discuss this further.
