Political relations between UK-EU

[Invisible Man's Bandage]

It’s finally good to see at least one industry doing well as a result of Brexit. Let’s hope there’s a few more to make up for those that are struggling.

Is the UK growth in your German business partly due to your British competitors struggling at the moment? I’ve read that the UK chemical sector has been struggling due to all the new regulations as a result of Brexit.

I can’t really comment on that as my experience for forty odd years is specifically in the print industry. The lift in business in the packaging industry is based on large volumes of packaging being brought back to the UK rather than large groups producing it around their groups throughout Europe. It seems to be permanent as both UK & EU based groups are increasing UK capacity and that isn’t cheap. A new printing press to print cartons costs £3.5-5 mill plus you need additional kit/space.

 

[west didsblue]

I can’t really comment on that as my experience for forty odd years is specifically in the print industry. The lift in business in the packaging industry is based on large volumes of packaging being brought back to the UK rather than large groups producing it around their groups throughout Europe. It seems to be permanent as both UK & EU based groups are increasing UK capacity and that isn’t cheap. A new printing press to print cartons costs £3.5-5 mill plus you need additional kit/space.

Hopefully that won't translate into additional costs to consumers buying the goods that use the packaging, although that is probably a vain hope.

 

[Invisible Man's Bandage]

Hopefully that won't translate into additional costs to consumers buying the goods that use the packaging, although that is probably a vain hope.

It’s hugely competitive with huge regional & global groups slugging it out. Producing in the UK shouldn’t increase prices but globally raw material prices for all chemical companies and other suppliers are going through the roof.

 

[Citizen of Legoland]

I can’t really comment on that as my experience for forty odd years is specifically in the print industry. The lift in business in the packaging industry is based on large volumes of packaging being brought back to the UK rather than large groups producing it around their groups throughout Europe. It seems to be permanent as both UK & EU based groups are increasing UK capacity and that isn’t cheap. A new printing press to print cartons costs £3.5-5 mill plus you need additional kit/space.

I've nothing to add to this other than your post has taken me back to my days in the printing industry (everything but packaging though). Left it after 15 years. The cost of printing presses was astonishing even back then.

 

[west didsblue]

It’s hugely competitive with huge regional & global groups slugging it out. Producing in the UK shouldn’t increase prices but globally raw material prices for all chemical companies and other suppliers are going through the roof.

Logically, if huge investment is required just to continue producing the same thing that was being produced on a bigger scale in another country, then economics suggests that it will increase costs, but presumably by not as much as having to import it due to new customs bureaucracy. Either way the UK consumer pays for it.

 

[Invisible Man's Bandage]

Logically, if huge investment is required just to continue producing the same thing that was being produced on a bigger scale in another country, then economics suggests that it will increase costs, but presumably by not as much as having to import it due to new customs bureaucracy. Either way the UK consumer pays for it.

Logically you are correct. Logic doesn’t play much of a part in the print industry and suppliers into it. I’ve been involved with inks and coatings for decades and prices are lower now than 30 years ago.

My company is a rarity as it is very profitable.

 

[Citizen of Legoland]

Logically, if huge investment is required just to continue producing the same thing that was being produced on a bigger scale in another country, then economics suggests that it will increase costs, but presumably by not as much as having to import it due to new customs bureaucracy. Either way the UK consumer pays for it.

The companies overseas still have to invest in new or upgraded machinery to remain efficient or competitive and by the same logic those costs are passed onto the consumer wherever they may be. There will be a period where a UK company has to make an investment for the future and the overseas firms haven't needed to do that but eventually printing presses wear out or newer machines do better things faster, with less waste and so on, so in the long term it will find its new level. In the end, the UK has brought back some industry back to the country which is surely a good thing.

In the meantime, the packaging purchasers (in this example) will just buy whatever is cheapest - even from overseas - as long as it can be delivered when they need it. I remember the far east becoming a factor in competition when I was in the print industry because their wages were ridiculously low, and they could produce large orders much cheaper even factoring in the shipping container costs.

 

[west didsblue]

The companies overseas still have to invest in new or upgraded machinery to remain efficient or competitive and by the same logic those costs are passed onto the consumer wherever they may be. There will be a period where a UK company has to make an investment for the future and the overseas firms haven't needed to do that but eventually printing presses wear out or newer machines do better things faster, with less waste and so on, so in the long term it will find its new level. In the end, the UK has brought back some industry back to the country which is surely a good thing.

In the meantime, the packaging purchasers (in this example) will just buy whatever is cheapest - even from overseas - as long as it can be delivered when they need it.

I agreed earlier it's a good thing that some sectors are growing as a result of Brexit. It's just a pity that many more are struggling.

 

[Didsbury Dave]

I agreed earlier it's a good thing that some sectors are growing as a result of Brexit. It's just a pity that many more are struggling.

Very similar to the big boom in payday loans companies during the 2008 recession.

 

[Vic]

I agreed earlier it's a good thing that some sectors are growing as a result of Brexit. It's just a pity that many more are struggling.

Is it a result of Brexit or just much greater demand for packaging because of all the online orders needing individual packaging that you don't need when buying on the high street?

Packaging shortages to hit supply chains

As packaging demand swells, driven by an accelerated switch to online purchasing, supply chain operators should consider alternatives to paper and card to maintain the flow of materials, according to Antalis.

www.foodmanufacture.co.uk