The company faces an extraordinarily turbulent set of supply chain conditions, exacerbated by the global pandemic. Costs are rising and supply is tightening in almost all supply categories: multiple petrochemical derivatives, such as resins and solvents, pigments and freight are three of the most volatile areas.
“The unusual set of supply chain conditions currently being observed are among the most severe I have seen,” Doug Aldred, president of Flint group Packaging inks, noted. “Our business is facing substantial cost and availability headwinds across multiple commodity categories. Resins, solvents and pigments (including titanium dioxide) are particularly problematic. »
Flint Group Packaging continues to work with all of its global supply chain partners to mitigate as many negative effects as possible. However, recent upstream force majeure announcements and the acute global freight imbalance preclude some corrective action.
“Unfortunately, despite our tenacious efforts to offset the costs and risks for our valued customers, the pronounced and prolonged pressure – experienced in some categories since mid-2020 – has forced us to act. Some raw materials, such as UV resins, additives and pigments, are reaching cost spikes not seen in the last ten years or more,” said Emmanuel Bareaud, president of Flint Group Narrow Web.
The company continues to invest in its assets, capabilities and operating procedures to negate adverse supply chain circumstances, where possible. However, it has become clear that these activities alone will not be enough; the company will seek to recoup its costs through a combination of deep productivity optimizations, price increases and temporary surcharges.