The market that SATO America operates in has undergone significant levels of cost increases for the past several months on raw materials, freight, and packaging. These increases have been unprecedented, and are driven by many market-wide factors including:
- Storm Uri hit Texas on 13-17 February, which resulted in the shutdown of petroleum cracking operations – this ceased the production of much of the monomer and specialty chemical raw feed stocks for North America used to produce plastics and adhesives
- Ongoing challenges resulting from COVID 19 have seen logistics and production challenges globally
- Raw material components critical in the manufacture of our products have seen unprecedented, market-wide increases, including:
o PET increases +15%
o Polypropylene increases of +70%
o US Crude increases of +50%
o Pulp and Paper increases of +15%
Consequently, this letter serves as notice of a 7% price increase on label and tag products for orders placed on or after June 1, 2021.
We acknowledge that these cost increases will have an effect on your business, and we have sincerely made every effort to minimize this impact for a number of months already. We would like to thank you for your loyalty and support over the past very difficult year, and we trust that you will understand the necessity of this change.
We will continue to do our best to support your business, employees, and customers during this challenging time. If you have any further questions please do not hesitate to contact your sales representative directly.
Director, Label Business
SATO America LLC