A recent nationwide YouGov survey, conducted for Davpack Packaging, has shown that 95 per cent of SME businesses across Britain are not currently looking to reduce packaging costs over the next six months.
The survey, conducted in July, showed that 36 per cent of decision makers in over 1,100 small and medium sized businesses are actively looking to cut business costs. A lot of these responses (28 per cent) cited leaving the EU as their key reason for cutting costs. However, the survey also showed that packaging was one of the areas least likely to be cut, with only five per cent of SME leaders saying they plan to cut costs here. Whereas, staffing, marketing and professional services have shown to be areas that are more likely to be cut ahead of the country’s political future.
While this may mean a slow decline in the employment or service industries outside the packaging industry, most SME’s decision makers appear positive about the future of the packaging industry and are keen to ensure that packaging continues to communicate and display company values and beliefs to customers.
Barney Byfield, managing director, Davpack Packaging, said, “We are in constant conversation with our customers about their business needs and Brexit is often mentioned as an uncertainty. However, the indications are that the packaging market continues to expand and that customers don’t foresee a need to cut costs on this business essential. In fact, we are currently experiencing strong demand across the board, not just within economy packaging supplies, but also added value areas such as custom printed boxes and ecommerce solutions.
“However, many businesses do feel a need to offset the uncertainty around the future impact of Brexit by making some cost reductions now as an insurance policy. We will continue to monitor the situation because if companies feel more affected as Brexit gets closer this is likely to affect business confidence, and in turn, demand for packaging supplies.”
Of the five per cent of participants that do want to target reductions in packaging, 31 per cent cited that Britain leaving the EU was the main reason for this consideration. While the country’s decision stands, the packaging industry will see a shift in spend but it can be assured that amongst SME’s the packaging industry will continue to use packaging as a marketing tool as the country presses forward.