July 25, 2023
(press release)
–
There’s never a dull moment in the corrugated industry and in the wider economic climate, and it’s certainly been an enlightening first six months of 2023 for both.
As Britain continues to navigate its way through some tricky times, Gareth Stell, Group Sales Director, Logson Group gives his half year view, looking back at Q1 and Q2 and looking ahead to the next six months.
Six months in
Boxes and Packaging and the wider Logson group has enjoyed steady and consistent performance in the first half of the year.
It has not been without its challenges, as demand for many goods saw a slight decrease as the cost of living and energy bill crisis began to bite. This, however, has undoubtedly been mitigated by the continued shift away from non-recyclable material or hard to recycle packaging and the preference to choose corrugated packaging.
That said, there has been heated interest in the Recycle -v- Reuse debate (pertaining particular to RPC’s Returnable Plastic Containers) and the Packaging and Packaging Waste Regulations (PPWR) which is stirring up something of a hornet’s nest.
The environmental credentials of corrugated remain incredibly strong and the desired choice for many businesses who prefer the sustainable nature of the raw material supply chain. It is fair to say that corrugated solutions continue to tick the ESG boxes of companies in the UK and beyond.
All things considered; it’s been another unusual six months but a period that has now passed us by.
So, what of the future?
Looking ahead
Despite the challenges faced, market conditions would suggest that the corrugated industry will remain fairly static in the next six months but is well placed for another growth period thereafter.
Once the furore has calmed over PPWR and RPCs we expect that industry will rally; a surge in demand could be entirely possible depending upon how the UK and global economic climate is faring.
As we look to Q3 and Q4 signs of ‘summer season’ are already upon us with holidays galore and an inability to progress business decisions because of them.
That said, we are already seeing the first rumblings of the seasonal packaging demand, and, as always are well placed to support customers with the complete range of corrugated packaging solutions.
Whilst supply chain issues have calmed, there are still challenges to be overcome that do impact on efficiency and timeliness of goods and services.
Industry experts NOA, predict that 2024 may still bring a year of uncertainty, with 2025 seeing a return to steadier market conditions and growth.
For now, though, we continue to work hard to support customers, both existing and new with some of the best corrugated packaging solutions in the UK.
As the largest independent group of packaging companies in the UK, there is no one better placed to do so.
For further information about the wider Logson Group and the companies within visit https://www.logsongroup.co.uk/
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