Bobst announces 2% price increase across all countries

Spare parts excluded from 2% price increase

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Bobst announces 2% price increase across all countries
Bobst announces 2% price increase across all countries

Post-COVID, global economic GDP is expected to rebound by +5.1% in 2021. This growth drives high demand for raw materials across various industries. In addition, bottlenecks in the global supply chain remain as high as during the pandemic peak, say a Bobst release addressed to its customers.

“In these circumstances, raw materials for the packaging industry and some key materials required for the production and maintenance of equipment, including standard components across electronics, electrical bearings, and consumables, are in short supply generating longer lead times and price increases.

“The hot-rolled steel plate price hit record prices across all exchange markets, increasing by more than 120% over the last three quarters (2).

“So far, we have been able to maximize our production capabilities reflecting the orders we received. We managed our parts inventories to avoid shortages. The new stock replenishments are, however, for the foreseeable future, going to be made at much higher costs. 

“We need to ensure business continuity and consider these new and unexpected market fluctuations. As of 1 July 2021, a price increase of 2% on machines and related peripherals will be rolled out across all countries. Spare parts and services are excluded from this general increase.”

Bobst statement on shaping the future of packaging

“Given the current circumstances and the market volatility, when a crisis turns into such a recovery, we must toggle between managing for the present and the future. We are planning for the long term with new forecasting and planning methodologies, but at the same time, we need to cope with immediate global market constraints,” commented Jean-Pascal Bobst, CEO of Bobst Group.

“Our local sales representatives will ensure that all customers will be informed individually to provide transparency, as we are all impacted by this special situation.

“The global recovery is positive, and it requires adjustments for the packaging industry. We will continue to shape the future of packaging together.”

(1) www.eulerhermes.com

(2) Bobst procurement data

 

2023 promises an interesting ride for print in India

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. While the print and packaging industries have been resilient in the past 33 months since the pandemic lockdown of 25 March 2020, the commercial printing and newspaper industries have yet to recover their pre-Covid trajectory.

The fragmented commercial printing industry faces substantial challenges as does the newspaper industry. While digital short-run printing and the signage industry seem to be recovering a bit faster, ultimately their growth will also be moderated by the progress of the overall economy. On the other hand book printing exports are doing well but they too face several supply-chain and logistics challenges.

The price of publication papers including newsprint has been high in the past year while availability is diminished by several mills shutting down their publication paper and newsprint machines in the past four years. Indian paper mills are also exporting many types of paper and have raised prices for Indian printers. To some extent, this has helped in the recovery of the digital printing industry with its on-demand short-run and low-wastage paradigm.

Ultimately digital print and other digital channels will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future. For instance, there is no alternative to a rise in textbook consumption but this segment will only reach normality in the next financial year beginning on 1 April 2023.

Thus while the new normal is a moving target and many commercial printers look to diversification, we believe that our target audiences may shift and change. Like them, we will also have to adapt with agility to keep up with their business and technical information needs.

Our 2023 media kit is ready, and it is the right time to take stock and reconnect with your potential markets and customers. Print is the glue for the growth of liberal education, new industry, and an emerging economy. We seek your participation in what promises to be an interesting ride.

– Naresh Khanna

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