Pregis and Sonoco have announced plans to boost prices on their protective packaging products by as much as 12%.
Pregis President and CEO Kevin Baudhuin stated that while the company is doing its level best to keep customer costs low, raw material price increases are bearing down.
“Immediate recovery of a portion of these soaring costs is necessary so that Pregis can continue to develop innovative solutions designed to better address evolving customer needs,” he said.
The Pregis products affected by the increase include air-cushioning rollstock (converted and lamination), foam rollstock (converted and lamination), Microfoam PE foam, engineered foam, inflatable packaging products and more. Also, costs for Pregis’s IntelliPack SmartFoam foam-in-place liquids will jump by $0.19 per pound.
Increased materials prices
Meanwhile, Sonoco’s Protective Solutions division plans to raise prices on its products by anywhere from 6% to 12%, depending on what levels are permitted by current contracts. The increases affect all of the products in the Sonoco Protective Solutions portfolio.
Vicki Arthur, vice president of Sonoco Protective Solutions, said the company has managed to mitigate rising costs through internal manufacturing and procurement productivity streamlining efforts. However, the costs of natural gas, feed stocks, and raw materials are forcing their hand, she said.
“Sonoco will need to raise prices in order to reflect the higher raw material, energy and manufacturing costs," she advised.
Sonoco’s roster of protective products include whine shippers, molded-foam cushioning, corrugated paperboard, pallets and other items.