Following the first half of 2017, when the figures recorded in all end-use segments were slightly lower than in the previous year, a considerable increase in order intake in the folding carton industry is leading to a substantial upturn in business during the autumn. According to FFI – Fachverband Faltschachtel-Industrie e.V., this is particularly true of food/general packaging, which is a large-volume segment. The pharmaceuticals, cosmetics and confectionery segments, on the other hand, have consistently reached the same levels as in the previous year over the three quarters so far and have in addition guaranteed high capacity utilization levels in folding carton production.
The major markets neighbouring Germany to the West, South and East have succeeded in achieving even larger production growth up to now. In view of the existing manufacturing capacities for folding carton board based on virgin fibre, an “order situation” that continues to be “good” and high capacity utilization levels experienced by board manufacturers, increases in demand in other European markets have meant that the lead times quoted to German folding carton manufacturers for virgin fibre grades have extended considerably in the recent past.
At the same time, monitoring of key factor markets for folding carton production and board manufacturing indicates rising raw material prices. Folding carton manufacturers are facing peak raw material prices and delivery bottlenecks with other important materials (printing inks and lacquers) too. This is combined with a shortage of freight capacity in both long- and short-distance transport, which is also having an adverse impact on delivery times and costs in the supply chain. According to the forecasts, the processors of paper and board are anticipating good to growing production and positive ongoing business development in the next few months as well, since it is expected that consumers will continue to be willing to spend and that consumer confidence will remain high – thanks in part to the fact that the economy is still developing well.
