Tape and adhesive prices continue to rise
Customers may see continued price increases across packaging going into holiday peak season, particularly tape and adhesives. Both the COVID-related ecommerce spike and constricted supply chains have driven up the price of all major feedstock and ancillary components. These factors have put tape producers in a position to dramatically raise prices.
One cause of the constricted supply chain is extreme weather, including February's polar vortex in Texas and Louisiana. This continues to drive up freight costs and disrupt the petrochemical supply chain, straining the supply of several raw material components used in tape.
Year over year, there have been significant price increases on raw material and ancillary cost components as the result of a number of compounded factors.
Raw material costs (Jun 2020 - May 2021)
Other costs (Jun 2020 - May 2021)
We recommend that customers place orders as soon as possible as we expect this trend to continue throughout summer and fall.