Sheetplant

Some key messages have emerged, which have been used at every opportunity in press releases and in articles which have appeared, not just in the corrugated trade press, but in retail trade publications such as Retail Week. SPA members are urged to use them too:

• In 2005 84% of all corrugated materials produced in the UK were recycled. For 2006 that figure is 93%
• This recycling rate prevents an area of board the size of Greater London from going to landfill

• On average boxes manufactured in the UK contain 76% recycled material, with many containing 100%

Raj Bhardwaj on benchmarking and Market Update

Raj pointed out that most companies carry out in-house benchmarking, examining trends within their own business and keeping an eye on key areas of cost. The invaluable SPA benchmarking programme, which is entirely free and entirely confidential, offers the opportunity to make comparisons with key ratios of a wide range of other corrugated businesses.

So far in this year’s exercise, 8 SPA members have submitted their last year-end results to the independent firm of accountants involved, with more expected in the next few days. There is still time for other companies to do the same, and to obtain the same benefits of the comparison of key ratios such as value added per employee and per direct employee, gross margin, material costs, net profit, debtor days, stock days and more.

Raj urged more members to take part in the exercise, which would help to steer any corrugated business.

Some 34% of UK paper making capacity has been lost in recent years, and increases elsewhere in Europe have not so far been enough to alleviate what is a very tight market situation. Accordingly, it is suggested that the UK industry will be forced to endure yet another price increase in 2008 Q1, which may lead to even more plant closures. The situation may change later in 2008, when new UK sheet feeding capacity may come on line, and in 2009 when new European paper-making capacity emerges.

In the meantime, businesses must stay sharp if they are to survive, and costs must be controlled. One more sound reason to take part in the SPA benchmarking programme!

Members Briefing

Graham Sutherland concluded the meeting with news of future events.

• The biennial CPI Health and Safety Conference on November 7^th is open to SPA members and there is a link from the SPA web site
• Subscriptions remain unchanged and the SPA will repeat its contribution of £3000 to the Corrugated Promotional Committee of the CPI
• The 2008 Design Awards event will be timed to coincide with an SPA meeting in June, and events at the House of Commons
• There is a proposal to hold an SPA meeting in February at the headquarters of Bobst in Lausanne, Switzerland, with non-members encouraged to join in the visit.