Sigma Stretch Film - prestretch film

Sigma Stretch Film: Just a quick update on the status of our pre-stretch products as we enter the fall season. Our busiest time of the year for this product category.


Lead times are 3 weeks or better for all pre-stretch products and we are building inventory on some items. This is a far cry from 7 months ago when we hit 6, 8, and up to 9 weeks on some orders.



"Here we grow again" is a statement we are looking forward to in Kentucky as we are expanding our pre-stretch capacity once again. This new line will be up and running in the next 60 days ... just in time for the fall. Although that's great news, I want to emphasis the importance of planning early and looking at your inventory levels now. Pre-stretch products are in high demand in the fall and lead times will go out regardless of our new capacity. Combine this with a price increase and order rates go through the roof and lead times come under assault. We will handle things a bit different this year to prevent the type of lead times we experienced last year.



Effective August 1st we will begin enforcing our monthly pre-stretch sales controls we implemented last winter. In other words, your purchases of pre-stretch will be held to your normal monthly sales during the past 12 months. I encourage you to look at your historical sales history for your customers and place your pre-stretch orders before the end of the month so you don't get caught short due to monthly limits. In other words, start August 1st with a full tank of gas, so your monthly sales history is enough to carry you through the fall season. Any pre-stretch orders placed before the end of the month will not count against your sales control number starting August 1st. Start planning now.



Finally, I expect the next move for pricing will be up, not down. It's too early to tell if this will happen in August, but I would expect something in the next 60 days, especially if crude oil prices and resin exports continue to move higher.



Have a great week and don't hesitate to call me if you have any questions. Thanks for your continued support and business.



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JIM KUELBS

SIGMA STRETCH FILM