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Supply bottlenecks also for pallets and wooden packaging

The global economy is struggling with supply bottlenecks. The various branches of industry are dependent on pallets and wooden packaging materials. Their manufacturers also continue to struggle with high material prices and supply bottlenecks, according to the German Association of Wooden Packaging, Pallets and Export Packaging (HPE).

The The global economy is struggling with supply bottlenecks. The various branches of industry are dependent on pallets and wooden packaging materials. Their manufacturers also continue to struggle with high material prices and supply bottlenecks, according to the German Association for Wooden Packaging, Pallets and Export Packaging (HPE).

Production is faltering, prices are rising and production lines are at a standstill. For the chip industry, for example, experts are currently predicting the weakest year for sales since reunification. The semiconductor crisis, in turn, is having a severe impact on the automotive industry and the car market. It is certainly possible to speak of the first signs of an economic organ failure.

However, if we consider the economy as a whole, pallets are necessary to keep the entire organism alive. Just as red blood cells supply the body with oxygen, pallets, wooden crates and export packaging transport all essential goods around the globe by road, sea and air. If the wooden packaging fails, the economy collapses.

Without pallets and wooden packaging, nothing moves in global logistics (Photo: Hapack/HPE)

Pallets show the state of the economy

„Pallets, transport crates and export packaging are an integral part of global logistics. Our more than 430 companies ensure the smooth national and international movement of goods with their pallets, crates and cable drums. Without them, vegetables, milk, baby food, medicines or vaccines as well as system components for water, electricity and internet supply would not find their way.“
Marcus Kirschner, Managing Director of the German Association for Wooden Packaging, Pallets and Export Packaging (HPE)

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Almost 110.4 million pallets were produced in Germany in 2020. This immense demand is no surprise. A manufactured product almost always needs to be transported. How well the German economy is doing can therefore be seen first and foremost in pallet production. However, in addition to the economic consequences of the coronavirus restrictions, the pallet and wooden packaging industry is still struggling with high material prices and supply bottlenecks.

Wooden transport crates ensure smooth goods transport. (Image: HPE)

Situation is a stress test

According to the HPE Managing Director, the situation on the timber market and the price trends for important product ranges are a real test for the companies and represent a threatening supply and sales crisis. This had an immediate impact on liquidity as well as production and delivery capacity.

This is another reason why the association is calling for economic incentives and increased public investment. Regional supply chains are extremely important, as most of the wood used in the industry comes from regional forests.

„The global economy is picking up again and the global demand for wood will increase. It is now important to increase public investment and create forward-looking economic incentives in order to be able to concentrate the systemically relevant supply chains in Germany in the long term“
Marcus Kirschner, Managing Director of the German Association for Wooden Packaging, Pallets and Export Packaging (HPE)

This is the only way that the wood packaging industry can continue to transport all the goods needed worldwide to supermarkets, factories and companies and ensure the basic supply of the population.

Source: HPE

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