With all the recent news of import tariffs into the United States, uncertainty and anxiety are at an all-time high. Which countries' exports will be most affected? How much will tariffs be? How long will it last? Few industries feel the effects more than packaging - 70% of American packaging is imported, and almost all domestic packaging contains imported materials somewhere in its contents. And while many packaging companies are choosing to ignore the issue and instead are trying to address it by quietly slipping in price increases, Averra is choosing to address the issue head on.
Averra is well positioned to minimize the impact of tariffs. For starters, we work with a worldwide network of suppliers - including domestic ones - which puts us in a position to pick and choose where we buy materials. That enables us to quickly find the best quality, lead times, and pricing. Our supply chain team is constantly looking at market conditions around the world in search of the best values. And frequently we are able to hedge on price increases by locking in long-term pricing. All these things we do, and many others, enable Averra to provide the best pricing and price stability to our customers.
One ugly side effect of pricing instability and the inflationary environment is price gouging and profit-taking. This happens when companies see inflation in their industries and use that as an avenue to increase their prices more than necessary, which increases their profits at the expense of their panicked customers. Averra remains steadfastly opposed to profit-taking and will not engage in such practices. So while many other packagers are already raising prices because tariffs are giving them an excuse to do so, our commitment to our customers is that we will not do the same.
If you have concerns about pricing or the effects of tariffs on your packaging - whether you work with us or not - please reach out. We're not burying our heads in the sand, and we would be happy to talk through it with you.
Jeremy Horton
Chief Executive Officer