News

The surge in the cost of manufactured products could mean that packaging producers will have to impose further price increases, according to industry sources.

The price of goods leaving UK manufacturers rose at a record 8.9% in May, according to the Office for National Statistics (ONS).

ONS said input prices for the raw materials and fuel that manufacturers buy were also 27.9% higher.

Prices for goods at factory gates rose in May by 1.6% from April, mainly reflecting rises in other manufactured product prices and oil-based products.

Although packaging manufacturer DS Smith managed to recover some of its higher input costs in corrugated packaging by putting up prices last year, group communications manager Peter Aubusson told Packaging News that prices were higher than a year ago and the packaging industry was facing "continued" input cost increases.

"If it carries on at this level it will put a squeeze on margins again as energy is a significant part of our costs," he said.

British Polythene Industries (BPI) raised the price of its flexible films by up to £80 per tonne across its entire product range from 1 May.

BPI chief executive John Langlands said the firm had to take action so it could continue to offer the "advanced product range customers require".

In January, high polymer costs prompted the company to increase the prices of all its UK products by up to £100 per tonne.

Meanwhile, rigid plastics group RPC increased prices by 5% from 1 January 2008 as a result of "unrelenting" rises in input costs.