As Film Extruders Try To Stretch Margins, Are They Looking In The Right Place?

genarex Blog

Source: Plastics News – Film extruders push for price hikes not related to resin pricing
Plastics News reported this week that several leading film manufacturers have recently raised prices on their basic polyethylene films. AEP, Berry Plastics, and several units of Sigma Plastics raised their film prices by an average of 4% this week. These price increases are not tied to material price inflation coverage (the most usual suspect in price increase – transferring the culpability), but rather to other cost increases such as fuel surcharges, logistics, and generally “hidden” costs such as product packaging.

In many cases, these film manufacturers may be overlooking more simple solutions – the opportunity to strengthen their product’s value proposition, improve their sustainability position for various products. In some cases, they can even simply reduce their raw material spending, allowing them to rebuild some room for margin expansion for their position in the supply chain.

Genarex is proud to offer BYLOX additives and master batches to provide these opportunities. BYLOX is a modified, plant-based additive which can be loaded at levels up to and above 20% in translucent and opaque films, offering marginal impact and performance improvements to olefinic films at a price below that of virgin low density polyethylene!

There is no doubt that BYLOX is not a solution for every film in production, however the opportunity to incorporate the product and improve net margins seems timely. It has to be a far more attractive option for a company than simply raising price and praying that your loss of market share isn’t too damaging. Many companies are already investigating the use of BYLOX bio-additives for their LDPE, LLDPE, and even HDPE films. For the other converters, one can only speculate “why not”?