Bargain barrels

摘要

The Steel drum business was not the easiest place to be last year. Fundamental overcapacity, restricted demand growth, competition from other packaging formats, and uncertainty over steel prices all made life difficult. The market, always sensitive to price, also seems to be getting tougher, with power resting very much with buyers. Nevertheless, there is still money to be made by the canny operator. One solution, as pursued by Greif, is to mirror the client industries by consolidation, encouraging global supply contracts and passing buying power up the supply chain. Others have looked inwards to find production efficiencies and cost savings. Some, like Skolnik, have stuck to their guns, promoting a high-quality product. Another strategy has been to broaden the range of products and services on offer in an attempt attract new custom and give existing clients reason to stick with steel drums as their preferred packaging option.