Industry Update: Cardboard Price Reaches New Heights
Back in February, cardboard prices hit an all-time high. According to the Producer Price Index from the U.S. Bureau of Labor Statistics, it’s value has risen 4% since December 2020.
What’s behind the growth?
It wouldn’t come as a surprise to anyone to hear that e-commerce has grown rapidly over the last year. Online sales accounted for an incredible 14% of total retail sales in Q4 of 2020. In fact, it’s already surpassed levels it wasn’t expected to reach until the year 2025. This year, experts predict e-commence will bring in about $843 billion in sales. (ROI Revolution)
With people ordering products online at a higher rate and frequency than ever before, there has been a huge surge in the demand for corrugated and solid fiber boxes. But that’s not the only factor driving up pricing.
Beyond the rise of e-commerce, another significant factor driving up cardboard box demand is the housing market boom. Inventory is at record-lows, along with interest rates, while demand has skyrocketed. When people purchase homes, they need cardboard boxes, and thus, demand rises. Back in January, Packaging Corporation of America Executive Vice President Corrugated Products Tom Hassfurther said the following:
“We’re also seeing obviously the big trends in people moving away from cities, buying homes, when you buy homes, there’s a lot of things that go into those homes that are associated with corrugated boxes.”
Hassfurther also cited the move in consumer purchasing trends away from plastic and towards paper products. With all of these components are in “growth mode”, he believes demand is sustainability and will continue in an upward direction.
In addition, the following factors are increasing the demand for cardboard
• Most consumer segments growing in the fourth quarter of 2020
• Demand from restaurants for take out packaging
• Increased demand from China as their economy rebounds
There’s never been a better return on your baled cardboard than right now. Packaging giant Sonoco’s VP and CFO, Julie Albrecht, explained that OCC (old corrugated containers) prices “averaged $71 per ton throughout 2020, and that the company anticipates OCC will increase to average about $90 per ton this year.” This has been a drastic change since 2019, when the average pricing was at record lows. Now, it’s jumped around 196% nationally.
Further points as to why the price of cardboard will continue to rise
• Continued increased demand both nationally and globaly
• Growing inflation
• Growing transport costs
Be sure to this extra revenue stream for your organization running optimally by having regular service and maintenance appointment. Or take the time to start a recycling program if you don’t have one in place. You’ll be both helping the environment and increase cash flow. Contact PTR to learn more.
“Cardboard pieces reach record high amid e-commerce demand”
“How Coronavirus (COVID-19) Is Impacting Ecommerce [March 2021]”
“2021 Housing Market Trends: What Buyers Need To Know”
Packaging Corporation of America’s (PKG) CEO Mark Kowlzan on Q4 2020 Results – Earnings Call Transcript
Paper End Users Forecast higher OCC prices
A Look at the Steel Industry During The Pandemic
The Fabricator is a magazine that provides market, industry, and product news to metal fabrication professions. Back in April 2020, they published an article called, “A brief history lesson on steel prices during crises”. It was the very early stages of the Covid 19 Pandemic, and the publication drew comparisons to the Great Recession of 08-09 in order to gauge how the steel industry would be affected by the global health crisis.
Reading this article nearly a year later, we know the steel industry, and all those industries that rely on it, are continuing to face significant challenges.
In Spring 2020, steel production and prices were indeed declining, but not nearly as severely as the Recession of ’08. Both hit suddenly and we saw a sharp decline in the demand and cost for steel. In 2020, mills were forced to close or drastically reduce their capacity, along with businesses across the globe.
Fast forward to mid-March 2021. While things are improving concerning the pandemic, many unknowns remain. Steel prices are now setting record highs. Demand is still grossly higher than what supply can keep up with. In an article published just a few days ago, “Steel prices continue to set new record highs week after week’, The Fabricator provides an updated look at how this is presenting very real challenges to fabricators and buyers alike. Availability is restricted, and pricing has become almost unpredictable. Throw the growing inflation into the mix and the landscape looks even more unpredictable.
According to SMU (Steel Market Update), “the market on March 8-9 showed the benchmark price for hot-rolled steel reaching $1,270/ton ($63.50/cwt), topping the previous high mark set in 2008 by $200/ton.” (TheFabricator.com)
Things to consider as one navigates this:
1. How and when to pass the price increase along to the consumer. Now is the time to plan on how to roll this out.
2. Keep your eye on inflation indicators, in particular, wage increases. While some industries like construction and hospitality are seeing increases, this isn’t affecting all industries. Wage inflation is a key driver of inflation.
3. Consider stockpiling inventory. Not just with steel, but with any consumable or commodity that is used frequently. This locks on your costs for a period of time. If this isn’t possible, try to negotiate with your suppliers.
4. Build partnerships. Unprecedented times call for thinking outside of the norm. Analyze what type of unconventional business partnerships could help ease the burden of rising steel prices and production costs.
5. Don’t rely on one vendor. Another reason for the rising price of steel is supply chain issues. If possible, have several vendors you can rely on for steel and other commodities, in the event that one can’t deliver.
We post two blog updates here a month, but be sure to connect with us on LinkedIn, for more frequent industry news!
You can read the article from last year in its entirety here, and the latest article here.
It’s Not Luck, It’s PTR Preventative Maintenance!
Take your luck into your own hands with our Preventative Maintenance Programs! If you want to avoid unnecessary downtime & costly repairs, ask yourself the following questions:
When is the last time your equipment has had Preventative Maintenance performed?
If you haven’t had your baler or compactor serviced in a year or more, don’t wait any longer to set your appointment! According to ANSI, (The American National Standards Institute), equipment should undergo maintenance checks at least annually. Whether you operate with one baler or have a fleet, we can accommodate your organization’s needs.
How important is the safety of and reliability of this equipment in your operation?If it’s very important, consider this. After long periods of regular use, inevitably, oil quality in your baler or compactor will begin to degrade. From here, it’s a domino effect. Parts will undergo wear with time, which in turn decreases pressure capability. For compactors, material weights will be reduced as a result. This will mean additional pull fees for your organization. And with your baler, performing at less than optimal levels causes lower bale weights, and often times, increases labor costs. Overall productivity nose dives and hauler fees increase. Sanitation issues will likely follow suit, which is hazardous to your employees. Click here for the full list of critical systems and structures that will be addressed during PM, as well as options to customize your program.
Luckily, we work on all makes and model of balers and compactors in the industry, throughout the United States – not just PTR recycling and waste equipment! Contact us at (800) 523-1155 or email Service@ptrco.com to learn more or make your service appointment.
Happy St. Patrick’s Day from all of us here at PTR!
“May your blessings outnumber the shamrocks that grow. And may trouble avoid you wherever you go.” – Irish Blessing
PTR Welcomes New Hires to Our Sales Teams!
PTR Baler and Compactor Company has recently welcomed two exciting new additions to our national Sales Team!
CJ PANCIOCCO – SOUTHWEST
We’re thrilled to announce that CJ Panciocco, formerly of WCA Waste of Orlando, is the newest member of the PTR sales team. CJ brings with him a new dimension of understanding coupled with an enthusiastic attitude.
CJ is a graduate of Coastal Carolina University where he majored in Marketing and Small Business Consulting. He has worked in both the hauling and equipment sides of the waste and recycling industry, so he truly understands and can anticipate your needs.
CJ’s primary role with PTR will be to manage the Southwest region (CA, AZ, NV, NM, UT, CO) for new and rebuilt equipment sales under the direct guidance of Fred Freer, Director of Sales SE & SW. We believe you will find his expertise invaluable for all of your future waste and recycling equipment requirements. Feel free to contact CJ directly!
Southwest Regional Sales Representative
o: (215) 537-2214 ex.2288
c: (267) 658-0264
SAM MCKINLEY – MIDWEST
PTR has also recently welcomed Sam McKinley as the newest member of the PTR Midwest sales team! Sam is an Ohio State graduate and now resides in the Columbus, Ohio area. After earning his degree, Sam was involved in helping a National Hauler grow their market share in the Midwestern Region.
His primary role with PTR will be to manage the OH, MI, KY and IN territory for new and rebuilt equipment sales under the direct guidance of Jay Sikorski, Regional Manager Midwest & Northwest. We believe you will find his expertise invaluable for all of your future waste and recycling equipment requirements.
Together, we’re confident we can add value to your Waste/Recycling Program. If you’re ready to schedule an appointment or have questions, please don’t hesitate to reach out to Sam directly!Sam McKinleyMidwest Regional Sales Representativeo: (800) 523-3654 ex.1010c: (267) 453-2905
Recycling in 2021: Looking Forward
2020 was certainly an anomaly year across the board, disrupting a number of industries, including recycling. There’s no doubt that the last year has made a significant impact on the recycling and waste industry.
The coronavirus pandemic changed the way businesses operated as well as how we recycle at home. Before COVID-19, reusable was becoming the name of the game. Disposable packaging was decreasing, while the demand for reusable options were on the rise. The pandemic turned that trend on it’s head. Anything that could become disposable, did, in order to help prevent the spread of the virus.
The recycling industry has become largely overwhelmed. Most cities ask their residents to focus more on quality over quantity. The rise in residential recycling can be attributed to a significant increase people working remotely, children attending school virtually, and so on. According to David Biderman, executive director and CEO of SWANA, “residential volumes were up about 20%” in the early stages of the pandemic (Resource-recycling.com). That numbers has come down a bit, but it’s still much higher than the industry is used to dealing with.
The United States currently has a 32% National recycling rate (Resource-recycling.com). The U.S. EPA has a goal to reach 50% diversion by the year 2030. In order to achieve that goal, the organization is challenging businesses, communities and individuals to to take certain measures. Here’s a brief summary of those measures:
MEASURE 1: Reduce contamination in recycling.
This means ensuring you are recycling items that are indeed recyclable. Your city or township should provide information on which # plastics they accept, as well as what other materials are appropriate to recycle.
MEASURE 2: Make the recycling processing system more efficient.
Here, the EPA wants to make sure that anything that can be recycled, is. Again, this will take education and making curbside recycling accessible for all Americans.
MEASURE 3: Strengthen the economic markets for recycled materials.
Overall, this means manufacturers utilizing recyclable materials as often as possible and the public buying more recycled products. You can find full information from U.S. EPA here.
If you manage an organization that deals with waste, utilizing a Recycling Baler will be a critical measure to get on board with these goals in addition to your own sustainability goals. Contact PTR today to learn how! Click here to get started.
Facility Management with PTR
Waste and recycling equipment is necessary for the vast majority of industries and types of businesses. Whether you manage a hotel, hospital, medical facility, restaurant, apartment complex, or retail establishment, you need waste and recycling equipment.
How do you know which type of equipment is right for your business or organization? PTR Baler and Compactor Company can help you determine what you need. Our experts can identify your organization’s waste stream composition. From there, we can recommend the PTR machines that best meet your unique needs.
Here’s a basic guide to determining which equipment you’ll need:
Do you have predominately dry waste? If you do, you’ll most likely benefit most from a PTR Stationary Compactor. Typically, they are best for retail establishments such as home supply stores, clothing stores and department store chains, as well as distribution centers.
HOW IT WORKS: The dry waste is compacted into the container. The full container is then removed from the compactor, which remains in its position. The container is emptied at a different location by a waste hauler, and then returned to your facility.
Do you have mostly wet waste? Organizations such as malls, movie theaters, condo association, apartment complexes and restaurants deal with a significant amount of food and liquid waste. Organic materials are best suited for a PTR Self-contained Compactor. This type of compactor is carefully designed to prevent leakage, which is critical in order to prevent odors and pests. PTR Self-Contained compactors have a unique liquid seal.
HOW IT WORKS: The entire unit is hauled away to be emptied at a landfill. Preventing leakage and odor control are so important because you want to ensure you’re able to fill the unit as much as possible in order to control waste hauling costs.
Do you have a significant amount of recyclable waste? Those who find they have a great number of recyclable materials, including cardboard, plastic bags, shrink wrap, aluminum cans, paper and plastic bottles should consider a PTR Vertical Baler. Our balers are the best quality you’ll find, and they are manufactured right here in the U.S.A. We offer a variety of sizes to suit the needs of organizations large and small. With a baler, this waste can be a new profit stream for your business, since proper recycling bales are valuable commodities. You’ll see a return on your investment quickly, will keep floor space clear of debris, and help the environment with one simple machine.
Contact us today to discuss your business and we can come up with a custom solution best for you.
Call (800) 523-3654 or click here.
PTR Parts Catalog – Second Edition Coming Soon!
Second Edition Coming soon!
Have you signed up for the PTR Parts Catalog? If your organization utilizes a baler or compactor, it’s a must have!
This comprehensive catalog showcases all available OEM-Certified electrical, hydraulic & mechanical parts. It includes all the replacement parts you could need for your balers, compactors, cart tippers and other waste and recycling equipment. This catalog also features Standard & Universal Power Units for pressure shift and by-pass cylinder compactors, as well as Rebuild Kits and packages at competitive prices.
ADDITIONALLY, YOU’LL FIND:
- Wiring Diagrams – to help simplify the process of troubleshooting.
- Baler & Compactor Decal Placement Drawings – to help you ensure proper placement of decals on your equipment, a necessity for compliance and employee safety.
- Smart Maintenance Tips – to help you get optimal performance out of your baler or compactor.
To sign up, visit bit.ly/PTRParts_Catalog_Signup, and provide your name and address to send your physical copy.
Because quality parts help guarantee the uninterrupted, optimal performance of your baler or compactor, we also send out a monthly PTR Parts Email Newsletter. It often includes special priced units or kits! Don’t miss limited-time offers and deals by subscribing to our Parts Mailing List!
Questions? Please contact:PTR Baler and Compactor Co. Parts DepartmentEndri FrasheriOffice: (215) 205-5486
Now Hiring Field Service Mechanics!
PTR is searching for Field Service Mechanics to join our team at multiple locations. PTR Baler and Compactor is a
world leader in the waste equipment industry. We are a 4th generation, family-owned company that prides itself on
quality and innovation. Our mission is to help companies achieve their green initiatives by reducing waste streams
and increasing recycling efforts.
• Service balers, compactors and industrial equipment
• Diagnose, repair, perform maintenance on equipment
• Ensure units are fully operational and exceeds customer expectations.
• Hydraulic repair and electrical troubleshooting experience
• Experience working with diesel or industrial machines
• Strong mechanical and technical skills with mechanic background
• Ability to read and comprehend schematics
• Detail oriented & strong customer service skills
• Experience with PLC
• Welding experience
*Willing to work over-time when requested by manager and based on business needs
At PTR, we consider our workforce our most valuable asset. We strive to provide top notch
compensation and benefit programs to allow PTR employees to protect their personal
and financial health, prepare for their futures, and create peace of mind. We proudly offer:
• Life Insurance
• 401k w/ profit sharing and bonuses
• Discretionary bonus
• 10 Paid Holiday (Eligible Immediately)
**If you do not need medical insurance, you’ll earn an additional $55.00 per week!
If you think you’d be a great candidate, please email your resume to email@example.com. Thanks for your interest!
Have A Happy, Sustainable Holiday
Even though this year is quite different than most, you can still make an effort to have a more sustainable holiday season. We put a guide together of some sustainable shopping and gift ideas to help inspire you!
1. Virtual Workshops
Online workshops and masterclasses are a growing trend right now. Classes are taught by experts in fields like cooking, negotiation, interior design, poker, gardening, acting, communication, filmmaking, and the list goes on.
2. Gift Cards to Local Businesses
We all know how important it is to support our small businesses right now. Consider getting friends and loved ones gift cards to their favorite local restaurants or shops that can be used during and after the pandemic. It’s not only a great gift to them, but to your community as well.
Plants in your home have been proven to help improve your overall mood, increase your attention span and even help improve air quality. Why not gift a friend with an easy to care for house plant? Spider plants and pathos are great plants, even for those without a green thumb.
4. Shop Eco-friendly brands
TenTree is one popular brand of apparel and accessories that is well-known for their sustainability efforts. For every purchase, they plant 10 trees. Another great brand is Patagonia, which uses recycled materials and has long fought for environmental ethics in the activewear fashion industry. A few other options: TenTree,
Is there a particular cause that you know means a lot to a friend or loved one? Consider making a donation in their name to a charitable organization. Here’s a comprehensive list of non-profits in the Philadelphia area.
Happy sustainable shopping!
Join the PTR Team! Now Hiring AWS Welders
PTR is looking to hire several American Welding Society Certified production welders in both our manufacturing plants, located in Philadelphia, PA and Plant City, FL. If you’re an experienced welder, we’d love for you to apply today!
PTR is happy to offer our employees many great benefits, including:
- Medical, Vision and Dental Insurance 100% paid by PTR for the Employee
- Company paid Life Insurance
- 2 Pensions
Key Requirements of the Position:
- Weld, tack and fabricate products with blueprints as reference
- Basic mathematical and measurement skills
- Ability to read and understand blueprints/weld symbols
- Prior MIG welding and fitting experience
- Formal weld training and education
Basic Qualifications Required:
- High School diploma or GED
- 2 plus years of related experience
- Welding certification
- Formal training or schooling with welding
- Ability to work overtime as needed
If you think you’d be a great fit, please send your resume to firstname.lastname@example.org. Thank you for your interest!
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