Investor Chatter (CONT’D FROM PAGE 7)
Play it Safe
ment in equipment and a widening gap with the majors. Integrateds, by contrast, cut prices to keep volume, then pursue another hike. The cycle can eventually starve the majors of capital, leaving them with outdated equipment that’s too expensive to replace. Even if producers succeed in pushing through a hike, higher prices could accelerate substitution. Amazon.com’s 2024 Sustainability Report showed that 50 percent of its shipments already use flexible plastic or paper mailers. One distributor told Green Markets this month it had re- placed 20 million boxes with mailers. Fruit and vegetable growers are also eyeing returnable plastic containers or plastic corrugated, citing waxed box prices above $2.50 each, compared with $1.80 for plastic alternatives. Re- tailers such as Walmart and Sprouts are pushing for the use of RPCs for fresh produce, claiming environmental and product-damage benefits. Comparisons against non- waxed corrugated don’t always show reduced costs, but that could change with more price hikes. Linerboard’s price elasticity was quantified in work cited in a recent price-fixing lawsuit. The 2008 paper by Haizheng Li and Jafeng Luo showed that a one percent increase in linerboard prices reduces demand by 0.18 per- cent. Since 2024, benchmark linerboard prices have risen $120 a ton, or about 14.5 percent, implying a 2.6 percent drop in volume — in line with industry trends. Whether the decline is caused by price or just correlates with it remains unclear. If producers pursue another $70 hike in 2026, the math suggests box demand could fall an additional 1.3 per- cent. Lowering prices doesn’t appear to be an option. The investor chorus may be getting louder, but the market fun- damentals — and the buyers reshaping them — suggest it’s badly off-key. Ryan Fox can be reached at rfox93@bloomberg.net or (609) 279-3849. Welch Packaging Merges (CONT’D FROM PAGE 1) family of companies while preserving the legacy they’ve built,” said Welch. This marks Welch’s 41st acquisition—coinciding with its 40th anniversary year. “Our goal has always been to pro- vide an umbrella for family businesses who may not have strong succession plans, growth resources, or exit strate- gies,” Welch continued. “These companies typically have deep ties to their associates, customers, and communi- ties. We want these businesses to see Welch Packaging as a lifeline—an opportunity to protect their legacy while continuing to grow.” For Elite’s customers and associates, the merger un- derscores Welch’s commitment to serving the region with expanded capabilities and a great associate experience. “We are thrilled to join the Welch Packaging family,” said CONTINUED ON PAGE 10
BloApCo Floor Shredders easily handle Cores and Sheet Waste
▲ Auto-jog reverse automatically clears material jams. ▲ Low shaft RPM: low fire risk, reduced noise, minimal dust. ▲ Safety drop plate ensures ultimate safety.
See the video at : BloApCo.com/horizontal-floor-shredder
www.bloapco.com 800.959.0880
© 2025 Blower Application Company, Inc., Germantown, WI
JanConvertAd_r02.indd 1
1/28/25 11:05 AM
COMMUNITY DATA CONNECTION DESIGN INNOVATION
ALL IN ONE BOX
PAPERBOX.ORG
8
www.boardconvertingnews.com
October 6, 2025
Made with FlippingBook Digital Proposal Creator