Flexibility is the Key
There are hurdles indeed, but there’s also a big carrot at the end of the stick.
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High energy-related costs will be a dark cloud hovering over the global economy for the foreseeable future, and companies are taking the necessary steps to adjust to the repercussions. As the market moves beyond this hurdle, there is still much to be positive about in the flexible packaging sector.
Donahue has an optimistic outlook for the next few years. Especially in 2006, she estimates that growth in sales revenue will be 7-8 percent, with volume growth expected to be as high as 10 percent. The difference in volume growth vs. revenue reflects the inability to pass through some of the cost increases.
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Tom Polischuk
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