Don't lose sight of the SME sector

The coronavirus crisis has hit the economy hard. Companies and industry associations are now hoping for a cautious easing of restrictions and thus a gradual ramp-up of production.

We have compiled a few voices from the packaging industry associations on the current crisis situation.

Richard Clemens, Managing Director VDMA Food Processing and Packaging Machinery

The coronavirus is a very special challenge for the economy, especially for manufacturers of packaging machines, who are not only well networked internationally, but also at home all over the world. Of course, the health of employees and customers is currently the main focus. Wherever possible, employees are working from home. Production has switched to two-shift operation in order to protect employees. Disruptions in supply chains, particularly from neighbouring European countries, have increased. Companies are finding it difficult to find alternative suppliers. Customer service, an important pillar of many manufacturers, is only possible to a very limited extent. Acceptance of completed packaging machines is delayed, as is the realisation of projects. The Order books are not yet full until the end of the year, Sales activities and dialogue with customers are proving difficult. It is certainly a stress test for our members; However, manufacturers of packaging machines are keeping production going overall. Politicians have responded with a number of measures, which the VDMA welcomes. The task now is to implement these and not to lose sight of SMEs.

Display

Michael Kleene, Managing Director Association of Cartonboard Packaging for Liquid Foods (FKN)

Production in our member companies runs largely smoothly. Beverage cartons for the German market are produced almost exclusively in Germany or other European countries. This also applies to the raw materials used. As companies that produce materials that come into contact with food, our packaging plants are subject to the strictest safety and health standards anyway. supplemented by special measures to prevent Covid-19 contamination have been. Like all people and companies, we hope that we can return to normal life and regular business operations as soon as possible.

Horst Bittermann, President of the European Association of the Cartonboard Industry Pro Carton

The world is facing one of its greatest challenges. Now is the time to pull together, support each other and follow the guidelines of our governments and health services. The cartonboard industry is doing everything it can to maintain the flow of important goods, especially packaging for food, pharmaceuticals and hygiene products. Currently All European cartonboard mills fully utilised. A big thank you goes to all the employees in our industry who are doing important work to cope with the enormous increase in demand.

Dr Oliver Wolfrum, Managing Director of the German Association of the Corrugated Board Industry (VDW)

The member companies of our association are are affected by the current situation in very different ways. While there are areas in which the order situation is above average, such as food, pharmaceutical and medical products and online retail, the production stop in the automotive industry is leading to noticeable declines in supplier parts. Initial figures for March still show an average increase of a good four per cent in working-day sales for VDW members.

Dr Oliver Möllenstädt, Managing Director of the General Association of the Plastics Processing Industry (GKV)

We want to exit crisis mode as soon as this is possible against the backdrop of health protection. In order to avert lasting damage to SMEs as a result of the coronavirus crisis, the first aid package from the federal and state governments, which in particular facilitated access to short-time working allowances and liquidity assistance for companies, must now be followed up by Further aid in the form of direct relief for companies in the short term by reducing or cancelling taxes, duties or levies.

Marius Baader, Managing Director of the German Aluminium Industry Association (GDA)

50 per cent of companies in the packaging sector are reporting an increase in orders and call-offs, while the other half are seeing stable demand. It It is now crucial to maintain the supply chains in their entirety. Without metal production, the manufacture of semi-finished products and recycling, including process scrap, these highly relevant chains would no longer function. We very much welcome the rapid introduction of government aid programmes. In addition, however, issues such as flexible regulations in the Working Hours Act, adjustments to deadlines in environmental and energy law and unhindered freight transport in Europe are currently just as vital for the survival of our companies.