European Federation of Wooden pallet
and Packaging Manufacturers
NEWS: Covid-19 / State of affairs
8 May 2020
THE EUROPEAN ROADMAP TO LIFTING COVID-19 CONTAINMENT MEASURES
Lifting of the COVID-19 restriction measures 4 – 18 May 2020
Following the publication of a European Roadmap further information and advice has been put forward by the European Commission.
The coronavirus pandemic has claimed thousands of lives and put health systems under enormous strain. The Commission’s immediate priority is fighting the virus and mitigating the socio-economic consequences of the pandemic. At the same time, we must start looking ahead so that Member States can gradually lift their containment measures, with a view to entering the recovery phase and revitalising our societies and economy.
While there is no one-size-fits-all approach to a gradual, science-based and effective lifting of containment measures, a highly coordinated way forward is a matter of common European interest.
Timing is essential and accompanying measures to phase-out confinement are required.
Go to this link and find an updated graphic on the lifting of the restriction measures from 4 – 18 May 2020, as it stands now.
COVID-19 SECTOR UPDATE
In general the European governments did choose a step-by-step approach to lift the measures.
The very strong lockdown regimes in f.e. Italy and Spain are smoothened and most businesses have re-opened, with the need to apply all safety measures.
Defending our health remains priority number one but Europe is entering a next phase with careful expanding the economical activities.
With the threat of a complete lockdown, comparable to Italy, Spain and also France, our industry did advocate the vital role of pallets and packaging in essential supply chains such as pharmaceutics and food. Gradually more countries agreed on this and some governments came with official declarations, others agreed in a more informal way.
The need for official statements by the governments to declare that our industry is crucial might become less upfront with the lifting of the measures, but we call upon the FEFPEB membership to keep on striving for recognition of our position in the supply chains.
GENERAL SITUATION PER WOOD PACKAGING MATERIAL CATEGORY
The overall picture did not change very much during the last weeks
Pallets
- Expectations for May-June 2020 less positive, but production level maintained on acceptable level, except in countries with a total lockdown
- Customers are to complete the building up of their stocks
- Repair sector suffers due to less volume of pallets supplied
- Pallet pools are still ordering more new pallets
Industrial Packaging
- Depending on the sector order books still downwards
- The warehouses are packed with goods but transport (shipment) disrupted
- The re-opening of important customer markets might improve the situation slowly
Light-Weight Packaging
- The demand for crates and small boxes is good, the agricultural seasonal activities are favorable to this situation
ADDITIONAL UPDATES ON THE ACTUAL SITUATION IN THE EUROPEAN COUNTRIES
Belgium (Fedustria)
- The economy slowly gains more momentum, now more sectors are re-activated
- For the Belgium woodworking industry the re-opening of the furniture retail markets is positive, but the customers demand will remain low and there are stringent visitors rules for shopping
France (SYPAL)
- A slowdown in orders for pallets up to appr. 25%
- Very difficult to comply with all safety measures
- Major concern is the future cash flow position / surviving this crisis and the payment moral
- Repair sector suffers from a decreasing stream of incoming pallets
Portugal (AIMMP)
- From April 2020 on turnover for the pallet and packaging industry dropped 15%, expected is that 2020 will show – 20%
- Demand for pallets and boxes from the agricultural sector higher due to the season
United Kingdom (TIMCON)
- Mood pallet and packaging industry improving with re-activating wholesale and retail
- Pressure on the UK government for the essential position of our industry continues Concern on the Brexit date that is not realistic facing the impact of COVID-19
The Netherlands (EPV)
- Production continues on acceptable level, but turnover for some Industrial packers – 20 / 25 %
- Slowdown in pallet demand, -10/15% turnover
- Crates and boxes for the agricultural sector in high demand
Sweden (Skogsindustrierna)
- Except for some branches March and April have been acceptable months for the economy in general
- But there is pessimism regarding the future
- Pallets for paper industry and vehicles are declining, otherwise levels are acceptable
- Industrial packaging – acceptable and high levels so far, but expected to go down.
Austria (VHP-Fachverband)
- General situation is acceptable and Austria frontrunner lifting the measures
- However packaging and pallets lost turnover and production continues on a lower level
- The “Kurzarbeit” system works, avoids termination of labour contracts buts costs are high for the country
Germany (HPE)
- Restrictions and measures are loosened but differences in implementation per federal state are confusing:
- Schools, shops, and hotel / restaurants allowed to re-open but under severe conditions
- The wooden packaging industry can continue its activities on reasonable level for pallets and IP
- The hygiene measures and occupational safety standards are strongly policed.
- Lockdown for automotive lifted, production allowed
Italy (Assoimballagi)
- Very negative impact of the lockdown for Industrial Packaging, turnover – 50% reported
- Pallet production – 40% average, all production sites are open but not on full capacity
- Due to closure of the local markets less demand for light weight packaging, - 40%
- Silver lining is the lifting of the lockdown with gradual re-opening of industrial and commercial activities
- Outlook 2020 overall: - 25% turnover for the wooden packaging and pallet industry
Spain (FAPROMA)
- Loss of consumption and purchasing power leads to a downward trend in demand for pallets
- This trend will continue and there is major concern that the last months of 2020 / first months 2021 will be difficult
- The tourism season will be weak and this is a part of the negative expectations
- Export for Industrial packaging remains uncertain but there is a slight recovery in orders and turnover noticed, still – 25-30% expected
The input by the FEFPEB membership is very much appreciated and please continue to share information regarding COVID-19
Take care and stay healthy!
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