It is scary to think that just a few months ago no one knew what the coronavirus was, two months ago we were watching the outbreak in China and how it was affecting their economy and now, a global pandemic with borders shut worldwide, markets crashing and panic erupting throughout society.
At the time of writing this article, the latest regulations have implemented strict measurements regarding social distancing. Restaurants and cafes are limited to takeaway only, clubs/pubs/gyms/cinemas are closed, sports are postponed and there cannot be groups of more than 100 people indoors. The advice is changing daily and it’s very likely by the time you are reading this article they could have changed again.
As you may have been noticing, resources have been very limited throughout supermarkets and pharmacies. Everything from toilet paper, masks, meat and hand sanitisers, everyday consumers are finding it very hard to buy necessity products due to the increase of demand. This increase of demand, has led to strict purchasing limits to help allow everyone a fair share of these goods. However, the constant demand for all this stock is pushing pressure on suppliers to be able to meet these needs.
For us in the packaging industry we have never been more busy, we are receiving countless of enquiries everyday for immediate supply of bottles and closures, mainly for hand sanitisers. The quantities that customers are requesting are in the hundreds of thousands and we have now got to the point where our lead time for production & delivery has hit the 8 week mark. With the current advice from medical experts, this virus is here to stay for at least 6 months to a year, so we expect the demand for hand sanitser bottles to remain the same during this time and we will be offering made to order bottles and closures as an alternative option.
Another issue that Australians are now facing, which is impacting the economy, is the value of the AUD is at an all time low for 20+ years. A large part of our business is importing packaging from our offshore factories and supplying to brands throughout Australia. This drop of the AUD has increased the price of packaging, due to import of materials which has ultimately led to consumers now paying more for goods than what they were previously. At Weltrade we mitigate the risk for our clients through setting pricing based on the market and holding that pricing until the goods are supplied. It is ensuring that planning is more important than ever and that you deal with a packaging supplier that can deliver on their promises in terms of quality and timing. To fix a problem down the track is a major heartache.
Finally during these uncertain times, more than ever it is comforting that you are working with a team of packaging professionals both in Australia and on the ground in China to get the best service possible, as well as to make sure what you receive is what you expected.
We are continuing to support all our clients everyday and offering them solutions to their packaging requirements, so that they can get to the marketplace as soon as possible. On behalf of all the Weltrade Packaging team we hope you stay safe and healthy during this pandemic and if you would like to discuss anything further, please do not hesitate to get in touch with us. You can reach us on 07 5597 0102 or email us on [email protected].