Market News

During the 2008 business year and leading into 2009 many customers have created their own corrugated manufacturing plants resulting in lost market share production companies.

This was due to the following reasons:

   1-  Manufacturers having difficulties in production ability and providing required quality assurances.  

   2-  Problems regarding the final production costs.

   3-  Costumers pursuing integrated business.

Although the main decrease in production demand can be attributed to customers purchasing or building their own factories, other attributing factors have made an impact on manufacturing companies to which we would like to offer the following advice:

   -   Maintain competitive prices with your customer base without undercutting the finished product market.

   -   Before reducing prices, make sure that you have reduced your cost. ie.: Waste reduction. reduce your stocks, reduce the credit selling period, labor cost reduction, power cost reduction...etc.

   -   Focus on relationship building with your customer base. Such as: quality, response time, better after sales services, etc.

   -   It is important to find lower cost raw materials for your company in the upcoming years.