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Brian Pankratz

~ Let's Talk Packaging

Brian Pankratz

Tag Archives: mercury plastics

Plastic Prices Rising

04 Thursday Mar 2021

Posted by Brian Pankratz in Info for Buyers, manufacturing, Plastic Packaging

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blisters, clamshells, custom plastic thermoforming, custom thermoforming, food packaging, mercury plastics, New packaging designs, packaging, packaging and containers, Packaging solutions, plastic extruders, plastic prices, plastic pricing, Resin cost, thermoforming

The plastics industry has continued to recover from the COVID pandemic as well as the recent unprecedented polar storm which paralyzed the Texas petrochemical industry.  Added pressure from the recent spike in fuel prices have caused an increase in freight costs.  Unfortunately, this perfect storm of long and short term disruption, has caused an increase in plastic prices and market volatility for the foreseeable future.  Let’s take a closer look at these factors in order to understand and hopefully neutralize some of this upward pressure.

The Polar Storm
On February 15th, 2021, The USA Today article reported “more than 150 million people were under a winter storm warning, winter weather advisory, or ice storm warning in 25 states.” These cold temperatures caused major energy problems, resulting in 3.5 million power outages in Texas alone. Texas is considered the petrochemical hub of America, with the majority of their facilities being shut down for several days and in some cases weeks, the plastics industry will be in recovery mode for several months to come.

Transportation
Transportation cost is a key factor in the manufacturing cost model. Since 2017 freight costs have been increasing, but in the last six months those costs have increased significantly. Powerful storms, such as the hurricanes this past fall and the ice storms this past winter create unforeseen obstacles and an additional demand on the industry to support recovery efforts. The most contributing factors for the rise in freight costs is a strong demand in freight, increased diesel fuel costs, and a low supply of carriers and drivers. This is an ongoing issue and carriers are predicting future increased rates as this is not a problem with a forthcoming solution.

Short-Term
The short-term outlook for plastic prices continues to be unstable. Most plastics have already seen drastic increases with reports that there are more to come. Resin prices have already increased 10% to 30% dependent upon the resin. Over the coming months, multiple price increases are expected with instability of the supply and the ability of the gulf coast chemical facilities to meet demand once again.

Long Term
There are no guarantees, but the increases we are seeing in plastic prices in the short term are expected to recover slightly in the summer months. The relatively short 2 week shut down of the gulf coast chemical plants from the polar storm will take a minimum of 3 months to recover. Transportation is still expected to be an issue, so increased shipping costs will still need to be factored in for future pricing.

Plan Ahead
There are several things to considered to help manage your bottom line. Below are a few to consider:

  • Understand your price breaks: Pricing is typically based on how many pounds of material are used to produce the quantities you requested. Request quantities that offer price breaks. Increasing your order quantity can be one way to keep your costs down.
  • Plan ahead: With price increases imminent, review your current inventory and ensure you have enough product on hand to get you through the high peak months ahead.
  • Contact your carriers: Renegotiation is key. Contact several carriers as well as third party logistic companies that can help manage shipping costs.
  • Contact Mercury Plastics: I agree that this point is a little self-serving, however, Mercury Plastics, Inc. has a competitive edge over most other thermoformers. Mercury extrudes various plastic sheet in house and has other unique capabilities that limit the need for other manufacturers. Extruding helps to reduce lead times and a better control over increased plastic prices. Mercury understands the price breaks, we have a robust future plan and negotiate with our carriers in order to reduce the upward pressure.  We are strategically positioned to be able to provide our customers with an insulating barrier to the coming storm.

The best way to work through unstable times is to ask questions to understand your options and to plan ahead. Start the process today by filling out the Request for Quote Form.

Like to know more about custom thermoforming and understand the costs for your product. Contact Brian Pankratz at Mercury Plastics, Inc. to learn more, bpankratz@mercuryplasticsinc.com.

Mercury Plastics, Inc. Expands Operations

14 Tuesday Jul 2020

Posted by Brian Pankratz in Marketing, Packaging Design

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Tags

blister pack, chicago, clamshell, containers, custom plastic thermoforming, custom thermoforming, deli containers, distortion, distortion graphics, food packaging, manufacturing, mercury plastics, oem components, packaging, packaging design, plastic printing, thermoforming, thermoforming companies

Visit Mercury Plastics website

As some companies pause during these uncertain times, Chicago based Mercury Plastics, Inc. is set expand their operations in preparation for future growth.

For over 65 years, Mercury Plastics has been a leader in custom plastic thermoforming. Most people, whether they know it or not, have encountered products that have been manufactured by Mercury Plastics. Mercury Plastics has thermoformed products for some of the largest organizations in the world, making them a trusted resource and solutions provider to the plastics industry.  Their vast capabilities and dedication to quality are just a couple reasons they continue to grow in such an unpredictable economy.

Capabilities and more…
Mercury Plastics dedication to quality and a commitment to supply customer-based solutions have inspired them to continually add equipment which expand their capabilities as well as meet the ever-changing demands of a global marketplace. With a wide variety of capabilities including: POP displays, clamshell/blister packaging, custom pallets/trays, screen/digital/distortion printing, in-house sheet extrusion, and custom thermoformed OEM components, Mercury Plastics can fulfill or exceed the customer’s expectations for almost any project in-house.

Speed to Market
The current global market demands that you be able to react quickly. The ability to react quickly to our customer demands and launch product fast is as important to us as it is to you. Mercury Plastics in-house design and tool room allow for important products to be launched quickly and correctly. Mercury consistently strives to exceed expectations and meet their goal of zero defects.

Preparing for the Future
Over the years, Mercury Plastics has continuously expanded their operation and capabilities to better serve their customers and provide more cost-effective solutions.  The addition of In-house sheet extrusion of PET and Polystyrene in previous years and now adding to their current inline thermoforming equipment makes them the top choice for custom thermoforming solutions.

Thick and Thin
Mercury Plastics has an extensive list of equipment accommodating both thick and thin gauge thermoforming. The ability to form a wide range of gauge thickness’ paired with their capability to process, print, or assemble, creates a solution driven organization that can meet your needs.

Mercury Plastics is a proven leader in the custom thermoform industry and here to help with any questions or projects that you may have.  To learn more about Mercury Plastics, or to learn how we can put our expertise to work for you, contact Brian Pankratz, bpankratz@mercuryplasticsinc.com for more information.   

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Mercury Plastics, Inc

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