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February 15, 2000

New 12% Increases Hit Buyers Early in 2000

New 12% industry price increases have been announced by major integrated corrugated producers. Buyers are being hit with these increases on top of the 20% increase they experienced in 1999. The current increases are based upon cost increases of linerboard and corrugating medium, the two key materials used to manufacture corrugated containers. In total, purchasers are now paying 30% more than they did at the beginning of 1999.

Despite industry-wide price increases, Thomas McCoy, President of McCoy Corporation says, "With an understanding of packaging economics and a careful selection of suppliers best able to serve a company's needs, most large volume corrugated purchasers can effect 15-20% savings over current costs. To realize these savings, companies have to be willing to reevaluate their purchasing practices and implement cost-based purchasing methods. Where companies continue to rely on the traditional competitive bid method, the companies will fail to realize these savings.

McCoy Corporation implements cost-based corrugated container programs for high volume purchasers. Founded in 1963, the company has served manufacturers of a wide range of products including food and beverage products, health and beauty aids, office products, furniture, appliances, and others.

McCoy Corporation can be contacted by phone at (805) 484-8484, fax (805) 484-0234 and e-mail McCoy@4Corrugated.com

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