The Industrial Association for Paper and Film Packaging has conducted a flash survey among its member companies on the Ukraine crisis. IPV members are particularly concerned about the drastic rise in energy costs.
The companies were very unanimous in their assessment of the situation. The member companies unanimously agreed that they would not accept the current support the planned and implemented economic sanctions.
„All measures must be taken to end the war and thus the pain and suffering of the people. And as quickly as possible.“
Karsten Hunger, IPV Managing Director
The economic disadvantages that are already being felt and those that are to come are accepted in return. The war has not yet had any major impact on customers. This would certainly change abruptly if it were extended to NATO countries. There is also consensus on this within the association.
Most are direct IPV-members are not involved in Russia, Belarus or Ukraine, or only to a limited extent. Therefore, at present sales that are lost on the Russian markets can still be compensated well. However, almost all companies are already experiencing problems on the procurement side in the form of extreme cost increases, paper shortages and delivery difficulties.
Of course, many other factors also contribute to thisn factors. „Our economic cycles have been disrupted for a good two years now. We assume that the crisis in Ukraine will cause commodity prices to rise again in the second quarter,“ says Hunger. Raw material supplies are currently largely secured, However, the security of supply decreases further with every day of war and the associated uncertainty. Rising prices will be a consequence of this.
Energy costs are also „running away“ from the economy. The situation here has worsened almost weekly since the start of the war. According to the survey, 85 per cent of members feel strongly or very strongly affected by this. And overall, all member companies say that the biggest problem in day-to-day business in the coming months lies. Companies are often only informed of current prices or surcharges by suppliers shortly before delivery. Their own cost calculations therefore also have to be adjusted at short notice. As a result, medium and long-term contracts are difficult to organise.
For 80 per cent of the companies The Ukraine war has a direct impact on the supply chain. In logistics, there is a lack of Ukrainian long-distance lorry drivers, among others, due to the war. The resulting shortage on the freight space market has a direct impact on the availability of raw materials such as paper and cardboard as well as on deliveries to customers.
Karsten Hunger: „Nevertheless, the coronavirus pandemic has shown that our industry is doing everything it can to remain able to deliver, even in times of crisis. The companies are certain that the importance of packaging in all sectors will be recognised by everyone, even if the current crisis worsens. We therefore ask for prudence in all decisions along the entire supply chain."
SourceIPV : IPV
