Print-Pack Enterprises Influenced by CoVID-19 Pandemic
Due to the outbreak and continuous spread of the global Pandemic, many companies engaged in printing and packaging business are also facing a huge crisis.
Mainly manifested in the following aspects,
1. Raw material supply, continuous fluctuation
Under the epidemic situation, the prices of printing raw materials also continued to fluctuate, and the shortage of supply became an important reason for their price increases. In the past few years, there has been a surge in paper prices caused by the shortage of paper supply in the industry. Today, this crisis seems to be happening again. In contrast, some printing companies with sufficient inventory are able to calm down slightly in the face of raw material price fluctuations.
2. Venture Capital Reserve, Better Small than Nothing
The Pandemic is also deeply testing the already fragile cash flow management of printing companies.
In recent years, the development of the printing industry has been tepid. The raw materials, labor, and logistics costs that have been constantly high, coupled with the taxes and rents that have plagued the industry for many years, printing is originally a low-profit industry, and the enterprise reserves little cash. .
“No order means no revenue, and the company’s tight cash flow will be inevitable.” One of ABMAC customers said helplessly.
Facing the Pandemic, some companies with relatively healthy financial indicators seem more confident. It’s really like “you have food in your hands and don’t panic when emergencies happen.” The Pandemic has been dragged on for too long. Even if you have no cash reserves, even large companies above the industry scale cannot be alone. It is necessary to optimize the allocation of company assets, and must not make the company unable to function normally due to major public events, or even face bankruptcy. “Because of many natural disasters, Japanese companies will reserve 3 to 6 months of working capital for unexpected needs.” A senior company expert said to us, “We should learn from Japanese companies and leave ourselves a minimum Safety bottom line.”
3. Government Policy Supports, Using Gov. Policy is Important but more self-rescue.
After the outbreak, local governments have issued a series of policies to support small and medium-sized enterprises in overcoming difficulties. In the view of some printing companies, these policies are quite powerful. How to use these policies has become an important aspect of the enterprise’s next development. The policy is good, but it is enterprise rescue that really works.
Drugs are just tools to help boost immunity. These policies are just like drugs. We cannot rely on them. We also need to rely on our strong immunity to respond.
Finally, we wish you all in good health and healthy development of the company!
