Economic Indicator: Looking Inside Box Sales

By: Kristin Burke
By: Kristin Burke

A cardboard box surprisingly can say a lot about our economic climate. Think of all the companies’ manufacturers’ retailers medical suppliers who indirectly use them Everyday. For years experts have said when the box business picks up so does our economy.

Increased shipping implies a growing economy and looking up and down these rows of cardboard boxes can give us some pretty reliable insight into the direction it's heading

"There is definitely the trend now that box shipments have turned the corner." said John Menzies, President of Pierce Paper and Box.

When the economy picks up, one of the first places you see it is in sales of corrugated boxes. Box sales and shipments at pierce box in Belvidere. Continue to increasing slowly and have since January and its a broad based rebound...it is encouraging considering 90 percent of Pierce's sales are to industrial companies.

"Everyone has come up a little bit. A lot of those component part manufacturers have started to rebound which is encouraging." said Menzies.

"When it comes to the economy perhaps its best not to look outside the box but inside the box."

"It’s really a trickle down effect if people are buying products and spending money than someone has to make those products and those products go into a box and that’s how the relationship between corrugated box sales and the economy is a good barometer. “

But Menzies notes it's not an open and shut case... customers inventories are still too low and that's the primary driver of activity

"People aren't holding any inventory because they are afraid we might dip back into a recession or the growth might not be sustainable."

Menzies questions whether the momentum is sustainable but says right now is a good start in Belvidere Kristin Burke 23 news right now.

Despite the slight rebound Menzies says he doesn't expect to see a large amount of growth for the next couple of years.


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