When sub-zero temperatures hit the south central part of the United States in late February, it created a paralyzing ripple effect throughout the polyolefin supply chain. At some point, each of Texas’s 254 counties received winter storm warnings. During those storms, power was lost, workers couldn’t travel, and freight transportation was curtailed. Many plants flooded and froze as equipment, fire suppression and coolant lines froze and burst.
Of course, the majority of American-made polyolefins are produced in Texas and the Gulf region where many producers declared force majeure. It was a devastating blow to an already supply constrained marketplace. In just a handful of days, pricing on many blown film grades of LLDPE and LDPE rose
to record levels.
Prices in this catalog reflect our March 29th increase. Laddawn-made and domestically sourced stock items increased 12%, on average. Imported items increased 5%.
Resin supply was never in jeopardy for us. Decades-long relationships with a diverse network of suppliers ensured that we had ample resin available. Being part of Berry Global certainly helped. As manufacturers restore inventories, costs will follow. Still, we expect higher prices to remain well into the summer months.
The consequences of supply chain disruptions may dominate our daily conversations, but there are reasons to be optimistic. As America’s available labor force improves, material bottlenecks and service levels will follow – here at Laddawn and for manufacturing across the country. In the meantime, we continue to control what we can, expand our product offering and add powerful new features to Laddawn.com.
Last month, we added an improved ICL product offering. This month, you’ll find new custom options for Zip Tops and Poly Mailers made from recycled content. If you haven’t already, log on and check them out. While you are there, click on My Account and then Brandit™. You can now see, build and modify your custom labeling right on Laddawn.com in minutes. Pick a customer or location, choose from an assortment of templates, upload your logo and personalize. Simple and intuitive. We put the power of private label in your hands. As always, there is no cost and no minimum order required.
On behalf of all of us in Atlanta, Dallas, Devens, Manchester, Sparks and Sterling, thank you for your business.
Mark P. Bourgeois
Director of Sales & Customer Experience