When domestic polymer producers entered the holidays with higher inventories, pricing power shifted to consumers. Now, just four months later, volatility in the energy markets has pushed feedstock costs higher and polyethylene plant outages have tightened inventories. U.S. polymer producers have reclaimed the prices they enjoyed last summer.
Pricing on Laddawn-made and other domestically produced stock items have increased 5%.
Overseas capacity, inventories and feedstock costs remain favorable. As a result, we are pleased to note that pricing on hundreds of our stock items will not change. This includes reclosables, most specialty bags, and all smaller layflat and gusseted bags. Nevertheless, there are good reasons to be optimistic about pricing. North American polyolefin production expansion projects will deliver a whopping 11 billion pounds of new capacity later this year and next. There won’t be enough domestic demand to support current pricing, so producers will look to bring the lion’s share of their new capacity to international markets. It is an important story to follow. Most analysts believe that domestic buyers will simply have more leverage.
There is also good news to share about Laddawn.com. In a recent survey of Print Designer users, virtually every respondent said that its look and usability met or exceeded expectations. Roughly 9 in 10 rated our printed bag pricing as either in line with others or very competitive. And when asked about Print Designer’s
speed, the overwhelming majority told us they were either satisfied or very satisfied with its quickness.
Some of the most exciting data continues to come from our first-time Laddawn.com adopters. In a typical month, nearly 200 new and existing users create their first technical drawings with Print Designer. Another 100 discover our innovative Share tool. And for the roughly 150 of you who log on for the very first time, welcome to Laddawn.com.
Finally, robust in content, our Distributor Resource Center has become a popular destination at Laddawn.com. It’s where you’ll find Laddawn 101, a sort of digital research hub that includes specification documents, interactive product pages and more than two dozen tutorial videos. If you haven’t checked out our Resource Center
yet, click the link in our home page footer. You’ll be glad you did.
On behalf of all of us in Atlanta, Boston, Cedar Rapids, Dallas and Reno, thank you for your business.
– Ladd & Dawn