Miraclon has increased prices by 6 percent on all products, effective from February 7, 2022, and the introduction of temporary freight surcharges. The necessary action to pass the increased costs is taken to maintain uninterrupted supply of flexographic plate material to customers and due to the rapid inflation of raw material, energy, labor and distribution costs impacting the entire package printing value chain.
Chris Payne, Miraclon CEO, commented: ‘Securing supply for our customers is our overriding priority. After weighing a combination of factors, we are taking two separate actions, because there are two different market forces at work. First, we’re raising the price of all our products to address the higher costs for raw materials, labor, utilities, and business services we are now paying.
‘Second, we’re implementing temporary surcharges in response to the current higher costs as a result of the significantly extended supply chain and raised prices for distribution and freight services. We believe that increased costs are a temporary situation that will moderate, and as soon as we are able to, we will reduce, or remove, the surcharges. We are confident this strategy is in the best interests of our customers, the supply chain and Miraclon.’
Throughout the pandemic, Miraclon has taken steps to ensure it could fulfil the growing demand for Flexcel NX technology. The company increased production at its manufacturing sites to minimize potential supply chain issues, now holding twice the pre-pandemic inventory of both raw materials and finished goods, requiring significant increases in working capital. It is also continuously reviewing its distribution networks and exploring different options and modes of transport to accelerate distribution – most of the time at a higher cost.
According to Miraclon, its actions mirror those being taken throughout the packaging industry. Securing supply is the overriding priority throughout the package printing value chain. Trade shops, converters, brands, retailers, and even consumers are prioritizing security of supply over price. This means paying the prices for goods and services that the market demands. Ensuring all players in the value chain get a fair return is the only way to guarantee a healthy and resilient supply chain.
‘Miraclon has been absorbing the standard inflation and costs since the introduction of the Flexcel NX System. Throughout this pandemic period, despite our costs rising continuously, we have taken all measures within our control to absorb price rises without passing them on to our customers. Unfortunately, this is no longer possible. We have taken this decision with great reluctance and careful thought about how best to implement the increase in a balanced and proportionate manner. Because transparency is important to us, and we want our customers to understand the economic and commercial background to the increase, and the factors that we considered, we’ve created an online resource page https://www.miraclon.com/security-of-supply/
to provide more information and help them navigate the current industry challenges.’