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Roberto Graziani from Graziani Packaging

Cost of raw material, logistics and climate change a thorn in the side of entrepreneurs

"Raw materials like paper and plastic are getting more and more expensive and delivery times are lengthening. I believe this situation will not improve soon, I think it will last for another 6 months or more," reports Roberto Graziani from Graziani Packaging. He also thinks the economic recovery is already under way, but there are some factors that are holding it back. 

Part of the Graziani team at Macfrut 

"There are currently three factors that are limiting a recovery, i.e. the cost of raw material, logistic problems and climate change. As for the former, we have witnessed fluctuating trends for both plastic and paper, especially when it comes to virgin raw material. Sometimes suppliers tell us waiting lists last months, which of course affects company plans." 

Graziani explains how multiple complex reasons have led to this situation. Of course China has been the first to "spring back" and is buying up raw materials from all over the world. As demand grows in both the US and Europe, prices are going up." 

"Secondly, logistics is also causing problems. Containers are still unavailable and, once again, China is conditioning the sector. Hiring costs have skyrocketed and, for those like us who export a lot, it is not easy. The maritime situation is a disaster and organizing deliveries all over the world has become very difficult."

"As for climate change, weather events are more and more extreme and, when the climate damages the entire production, the whole chain suffers. In Italy, for example, the winter months are looking more and more like fall. Plants wake up in February and, when cold fronts hit later on, they compromise crops." 

Corner pieces

Organization and flexibility
According to Graziani, it is not easy to deal with such situations, also because they are brand new in most cases. "We would need to be able to look beyond all this, but it is difficult when we do not know what will happen tomorrow. As a company, we are getting reorganized thanks to an increased flexibility and we will not stop our investments. We now have 52 employees, plus another 10 in our Valencia branch. We have invested in a new IT system as well in photovoltaic systems which have made us more efficient."

Graziani Packaging has also invested in new facilities, as it has opened warehouses in Trentino Alto Adige, Apulia, Calabria and Sicily. But, most of all, it keeps on investing in product innovation. "Corner pieces and straps are our leading products. We can supply different versions depending on customer needs as, for example, having to transport a load from Romagna to Switzerland is different than securing loads that need to reach Asia or America. This is why we have different products with different characteristics. For example, our corner pieces can be customized in 8 different version. Diversifying our offer has meant we can reach more clients and supply tailored solutions."  

The headquarters

Fruit Attraction Madrid
Graziani Packaging will attend the Madrid fair (October 5-7) in Cermac stand 4D12. "Macfrut went very well and we are now ready to meet old and new customers. Our company is doing an excellent work in Spain and the fair will be the perfect chance to meet our partners as well as operators from South America. We hope things will go back to normal soon." 

For further information
Graziani Packaging

Via Del Macero, 9
47025 Mercato Saraceno (FC)
+39 0547 373711
graziani@graziani.com
www.graziani.com


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