It was not only in times of pandemics that companies and countries recognized that long-chain supply processes involve risks. Increasingly, in communication with our wide-ranging clientele, we are learning that many companies are relocating their previous packaging production from china back to Europe. The reasons are complex.
Shipping & delivery of individual packaging
Delivery times have increased dramatically from the asian area to europe, especially during pandemic periods. Delivery times are doubled without explanations, a packaging production including delivery time is not rarely 4-6 months in progress. Companies in china mostly have pay in advance, so there is little leeway to cancel contracts, especially in view of the fluctuating and comparatively rather poor legal security.
Costs & transparency of luxury packaging
The costs for a packaging production have increased drastically in china in recent years. Many customers report price doubling within a few months. Even in the case of production orders that have already been closed, it is not uncommon for prices to be arbitrarily adjusted with reference to the situation on the market for the basic materials.
Rising container prices for shipping & customs costs also lead to the circumstance, that packaging production in china gets more unattractive.
Quality, environment & ethics
Not generally but in many cases it can be stated that the processing quality of delivered packaging is not always optimal. Due to the lack of legal certainty and the usual advance payment, rights are increasingly difficult or even impossible to enforce.
Chinese packaging also does not always present the best picture from an energy and environmental perspective. For example, even minimal environmental standards are not adhered to, and a great deal of plastic is generally used. Raw materials come from dubious sources.
In terms of labor protection and human rights, the world power is also one of the worst performers on earth. This is a tough act for European companies, which are increasingly orienting and aligning their philosophy to environmental protection and ethical standards.
Conclusion
Many product groups will probably continue to be manufactured in asia in order to achieve the lowest possible purchase and production prices. Increasingly, however, we are seeing that the price difference compared to production in europe gets balanced out piece by piece. For example because of increased costs, long delivery routes and the mechanization of many branches of industry.
With very high quantities in the 6-7 digit range, packaging production in asia continues to be noticeable in terms of costs. At least if you disregard the "ancillary costs" listed in the article such as environment and ethics.
Guddenberg offers the best prices in the area of high-quality packaging and sustainable packaging production in strict compliance with ethical standards. The increasing shift of many packaging production back to europe is welcomed, without wanting to demonize the ancient and complex culture of the chinese people, as well as the important partner china.
Thanks for your time!
