Aluminum Tariff's and the Packaging Industry
New tariffs on US imports of aluminum and steel will affect a number of different industries, and the packaging industry is no exception. While too early to accurately predict the final effect of these new import taxes, it seems clear that they will be felt in an industry that uses these materials not only for building machinery but also for the packages themselves. Packagers using aluminum cans for their beverages have already voiced concern over a likely rise in the cost of materials, which should worry American consumers, as that rise would likely be passed on in the form of higher prices. The hit could be even worse for small businesses that cannot afford to pass on the increased cost if they hope to stay competitive with larger beverage packagers.
These tariffs may also have the unintended effect of making alternative packaging materials, such as glass and plastic, a more attractive option for packagers. As to packaging machinery manufacturer's like Liquid Packaging Solutions, the machines built for the packaging industry can typically handle a range of container types and materials. However, for machinery manufacturer's that work in a specific industry niche (aluminum cans, for example), the tariffs have the potential to force change, or even injure such businesses. Should these taxes push packagers to move away from a specific type of container to a new container or different material, some manufacturer's may be forced to reevaluate their own business models.
Again, with exemptions and modifications likely to follow the new tariff's in the foreseeable future, and without any clear idea of how the rest of the world will react, the ramifications of these new tolls, if any, on the packaging industry remain to be seen. However, there seems to be legitimate and logical reasons for manufacturers and consumers to keep an eye on these developments. Businesses can rarely increase cost of material without increasing price. The fallout from new taxes, along with the response and possible regulation likely to follow, cannot immediately be identified. Packagers and those in the packaging industry must now react as change occurs, until things settle once again.
Liquid Packaging Solutions is proud to manufacture American made packaging machinery in our La Porte, Indiana plant! If you would like to learn more about any of the packaging equipment built by LPS, from conveyors and turntables to filling and capping machines, feel free to click and browse the specific product categories found on the left of the screen! If you have a specific packaging project, we encourage you to call the Packaging Specialists at LPS for assistance or with any questions you might have regarding machinery.