Market Insights from Royal Containers
Overall, Canadian economic results were modest yet healthy. Despite the fact that North America was challenged by corrections in the housing market and trade restrictions, we still saw a growth in our National GDP of approximately 2%.
For the corrugated market, the Pulp & Paper industry is generally a good indicator of overall economic wellness. In recent years, there has been a massive spike in demand for paper and corrugated products thanks to Amazon and the growing popularity of online ordering. In fact, the pulp & paper/corrugated industry experienced the same percentage of annual growth (roughly 2%). Although I would like to see a higher rate for our industry, 2% is considered a healthy growth rate and directionally correct.
As a whole, the corrugated industry witnessed fewer announcements of consolidation and experienced a healthy dose of investments and expansions throughout the year. Another positive trend within our industry is the focus on sustainability. Key players in the market are promoting the importance of choosing paper-based products over plastic and how it contributes to a healthy planet for all. At Royal Containers, our story continues to talk about sustainability and social responsibility.
Similar to the rest of the industry, our growth this year was healthy but modest. 2019 proved to be a very challenging year and one riddled with unexpected change. Although we fell slightly short of our overall sales goals, I am happy to report that in the end, these challenges made us stronger. They reminded us to not lose sight of one of the important attributes of a successful business…. resilience.
In hindsight, we knew a slowdown was coming. After 5 years of double-digit growth, history would suggest a downturn is inevitable. Combined with other factors such as a decrease in demand for corrugated and readily available supply, a softness in the marketplace occurred. Softness in the marketplace encourages customers to be aggressive by reaching out to the competition and looking for ways to drive costs down. In addition to changes in the market, Royal Containers was faced with significant leadership changes. Several key positions retired in 2019, to these special people, we can’t thank you enough. And to our new leaders, we are excited about the future.
The key take away for Royal 2019; fear complacency and exercise resiliency.
Moving forward in 2020
Building Partnerships in Packaging remains the reason why we, Royal Containers, exist. We will continue to strengthen our relationships both inside and out of the office by keeping true to our corporate values: Being Responsive, Caring and Authentic, Performance-driven and Leadership stewards.
[blockquote author=”” link=”” target=”_blank”]Our focus turns to achieve the goals set out in our 2020 strategic plan. Our destination is clear and we have communicated this to our employees. Please Come in for a visit and let us share with you our 2020 Strategic Plan.[/blockquote]
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