The printing industry (among others) has experienced price increases due to pandemic-related challenges and the rising costs of business operations, such as PVC Resin and other materials, production, and labor.
Plastics Technology posted an article on October 22, 2020, about the continued climb of PVC and PE prices over the course of the year. In fact, PVC prices went up three times in two months as a result of “a very tight market, a robust increase in demand from construction, significantly higher export prices, much lower availability, and the late-settling September ethylene contract price increase,” which only added to PVC production costs, according to Mark Kallman, RTi’s VP of PVC and Engineering Resins.
A week later, Plastic News reported the fifth consecutive month of PVC price increases, totaling a 20-cent jump since June. It also stated demand was driven higher by the quarantine effect on household projects, noting the construction industry typically “accounts for about 60 percent of the PVC consumption in the U.S. and Canada.”
Limited availability from multiple PVC makers over the course of the first three quarters of 2020 was caused by chlor-alkali turnaround and hurricane damage, according to S&P Global. Significant changes in consumer behavior, such as online shopping and delivery expectations, increased during the pandemic and resulted in rising transportation costs. These changes will profoundly impact businesses and the cost to operate as rates increase in the new year.
MGX was not immune to these rising costs and worked to minimize the impact to our customers as much as possible. We are hopeful that 2021 will present us all with growth opportunities and the resources we need to ensure a successful year. MGX continues to strive to be the partner that you need – the one with the experience, the expertise, and the excellence in material and service that helps you stand out to your customers.
Contact our knowledgeable team to discuss your next project! We look forward to our continued partnership in 2021.