Raw material shortages lead to long delivery times

06 July 2021

Raw material shortages lead to long delivery times

From steel to paper pulp, from computer chips to coffee and from rubber to plastic. No one could have missed it: there is such a great shortage of raw materials worldwide that prices and delivery times are exploding.

There are also supply problems and price pressure in the world market for rubber and plastic at the moment. And this also has its effect on the packaging tape market (PVC tape and PP tape). The pressure is caused by an increasing shortage of raw materials and an explosive increase in the demand for packaging tape. It is therefore necessary for Laro Tape to take the necessary measures. For the first time in history, we are switching to a summer closure for production and logistics. In addition, the delivery times will be longer. Read more about the delivery times and the outlook for the rest of the year in our blog.

Summer break production

In August, our tape suppliers will be closed for about 3 to 4 weeks for, among other things, regular major maintenance on the machinery. Given the current shortage of raw materials, it is unlikely that we will be able to build up sufficient inventory before then to be able to produce normally during this period. That is why we are unfortunately forced to shut down our production and logistics for the first time in our 46-year existence during the summer. We have planned this closure for weeks 32 and 33, but we may have to extend it by an extra period if the tape shortage increases in the coming weeks. As you can imagine, this is not entirely foreseeable at the moment, but we will of course inform you as soon as there is more clarity. Our office is open as usual during the production stop.

Customized delivery times

It is inevitable that delivery times will be longer as a result. Below you will find an overview of the current production times (from date of order confirmation) per tape quality for both new and current orders. This is a snapshot and can change:

  • PVC 53my 9-11 working weeks + 2 weeks production closure
  • PVC 63my & 83my Very limited availability, delivery times in consultation
  • Paper tape 4-5 weeks + 2 weeks production closure
  • PP-Hotmelt 7-8 working weeks + 2 weeks production closure
  • PP-Acrylic 6-7 working weeks + 2 weeks production closure

We fully understand that our delivery reliability is of great importance to you! We therefore advise you to take this situation seriously into account and if possible do the following:

  • Order well in advance
  • Increase your stock buffers
  • Keep an eye on your production and delivery schedules

Naturally, we closely follow price and delivery movements on the various (world) markets and react immediately as soon as the situation relaxes somewhat. In recent days, we have received cautious previews from our suppliers on the delivery situation of PVC tape. This situation seems to be gradually improving after the summer holidays: it is expected that more raw materials will be available in September/October. Of course, this information is subject to change, but we are pleased that there seems to be an improvement.

Read the detailed information about the summer closure, delivery times and prospects here.

Raw material shortages lead to long delivery times