Recent raw material scarcity and cost inflation in the paper business have led to higher price hikes, while industry restructuring combined with economic recovery have caused overbooking. But the market outlook is more balanced, with
'While the pandemic put a tail wind into some businesses, including packaging and wooden building solutions at
With 25 years in the business, ter Horst has never seen anything like the paper industry of the last year and half. Demand for paper has been inching down annually in
'This is why current unavoidable price hikes in the face of rising raw material and energy costs, may seem steeper than they actually are,' ter Horst explains, 'because they're coming from such a low benchmark.'
Scarcity of raw materials
The stay-at-home lifestyle during lockdown that sparked an unprecedented rise in e-commerce also exploded the market for brown box making, which uses partly the same recycled fibre raw material as paper producers. 'This has made it difficult to source and inflated the price,' says ter Horst.
On the other side, a marked drop in the production of virgin paper during the pandemic meant a corresponding lack of paper going back into the industry's circular economy. This combined with restructuring and economic recovery means
'It's been challenging for our customers and challenging for us too,' says ter Horst, who is urging customers to be patient. 'But price increases will need to continue for a while as we work to bring everything back into balance.'
Closing out capacity
'This has stripped us down to only our most competitive assets,' ter Horst says, 'so as things. normalise, we'll be even better positioned to serve our customers.'
Good green news
There has also been good news for customers in sustainability. Most recently with the announcement of a new biogas partnership with Gasum at the
Digital services score high
During the pandemic, digital services also became core to her division's customer service offering, characterised by an increased uptake of a digital tool called eFlowOnline.
'Using the tool, customers can track their orders and be in touch with us 24/7,' says ter Horst, who is encouraging more customers to sign up. Net promoter scores and customer feedback have shown the tool to be a valued digital customer service platform in the industry. 'And that is saying a lot,' ter Horst enthuses.
Customers have also been taking advantage of a growing body of digital solutions designed to help them solve problems from a distance. 'Our technical customer service has been particularly well received,' ter Horst recalls 'when we haven't been able to meet in person.'
Opening up again
Now with things opening up, she is keen to get out from behind her computer and visit as many production sites and customers as she can.
They say social distancing comes naturally to Finns, but ter Horst is not your typical Finn. With a strong background in sales, she is a self-described fan of face-to-face to meetings.
'Customers know me, and I've really missed getting out and connecting with them in person,' she says.
But, wherever ter Horst heads, for now, it will still be into the wind.
'At least until the turn of the year when we will be better positioned to serve our customers, and in a better market.'
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