Are We in a Folding Economy?
Not all businesses are doing poorly, and in fact some of them have seen a rise in sales. Much of this fluctuation depends on the type of business they are currently in, or the fact they were able to pivot their products during a crucial time. The CartonERP team has seen this firsthand with those plants involved in print packaging for online merchandise, food packaging and pharmaceutical products. These markets have been seeing a steady growth.
The world of Print Packaging was already on the list for projected growth amid the paper and plastics debate. Now with a decline in money spent on certain activities, people have turned their budgets in a new direction. Money is still being spent, it is now just in a separate category, but what are people buying?
Many involved in food packaging or health and safety will continue to see orders placed and quite possibly lead times extended as we progress through 2021. As consumers remain reluctant to venture out, their attention is drawn to internet sales. Beauty products, health and safety, and food are among the top items in their online carts. These items not only need product packaging, but usually the shipping cartons as well.
While sales climb, we do see a possible downside to this momentum. Companies are finding an unforeseen expenditure this year in keeping their employees healthy. It has been an unexpected financial endeavor to keep their employees safe and this translates to increased cost overhead. Increased funds have been allocated to purchase cleaning products, partitions and masks that make running a plant with hundreds of people more expensive. Often these companies will have to squeeze those costs into their budgets in lieu of raising the costs of the consumer goods they are selling. While these have become a necessary part of the budget, it is often at the cost of something else.
What are you putting off that you feel can wait, is it your software? What if we told you, with CartonERP your budget has room for us- would you give us 15 minutes to show you how? All you would be investing is a bit of your time and it could change your entire way of thinking about what is possible in 2021. Click here to connect!
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