Even before the COVID pandemic, many regions around the world were affected by slowing economic growth. This caused many manufacturers to curtail production in key economic markets.
After the economy collapsed in early 2020 – due to the global lockdowns – the same manufacturers experienced historically high demand in the second half of 2020. This was triggered by changes in consumers’ workplaces and lifestyles and led to a shortage of supply.
Significant price increases and delays in deliveries are the result. Items of personal use, all kinds of spare parts, raw materials, building materials, etc. are affected.
Faced with drastically increased costs in purchasing and transporting goods, suppliers are reacting differently: some are waiting for market adjustments, others may pass on the costs to customers if they have no alternatives.
As the supply shortage and the unabated increase in demand are compounded by other unforeseen market developments, such as the energy crisis and the Ukraine war, exorbitant price jumps can be observed in individual market segments.
The sharp rise in orders from online retailers due to the pandemic, for example, has led to a significant increase in demand for cardboard packaging.
This has led to price increases for corrugated board processing machines of over 70% in some cases for new machines between 2019 and 2022!